Based on the present situation, Betty needs to evaluate the ethical and legal aspect of the situation. Did Betty lied for the Senior Management position? The question is about what is right and what is ethical and, what is the right thing for Betty to do? The current proposed action for Betty is, whether the action is legal?
According to Bagley and Savage (2009), it is vital to address the legal issue first in order to establish the perception that legal compliance is the starting point for any standard. Also the authors stated that “when you try to keep to the letter of the law while undermining the spirit, you are likely to violate the letter in the end” (p. 26). This implies that it is better to adhere to the law because law helps to shape the competitive environment which affects each of the five forces that determine the attractiveness of an industry. In this regard being part of senior management, it is important for Betty to choose the legal path.
Does answering yes to the legal issue, maximize shareholders value? There are two answers to the question, yes or no. If Betty answers yes, the next question is, is it ethical? The issues of ethical are to prove to the customers, employees, community, environment, and suppliers than satisfying the shareholders. If the proposed issue maximizes shareholders value and it is ethical, then Betty has to disclose to the human resource department.
Similarly, if her answer in maximizing shareholders value is no, then Betty requires to evaluate the effects and cost on shareholders with regards to other stakeholders. The question is would it be ethical not to take action? If the answer to this question is no, then Betty has to disclose her actions to shareholders.
How should Human Resources handle this situation?
Since human resources have requested Betty’s personal and educational information to update her records, the human resources department needs to give her a deadline as to when the