Empress Luxury Liners

Topics: Ethics, Business ethics, Public company Pages: 3 (1068 words) Published: May 20, 2013
Empress Luxury Lines

Antonio’s Ethical Dilemma
In this case study, Empress Luxury Line’s manager Antonio Melendez faces an ethical dilemma which many managers have experienced in the corporate setting. Callahan (1990) supports this theory: Fifty-eight percent of the respondents to a recent poll believe that the ethical standards of American business executives are only fair or poor. The public outcry about business ethics is paralleled in legal journals. At the same time, an employee who is discharged for reporting or refusing to engage in illegal or unethical activity within the organization receives little or no legal protection in many U.S. jurisdictions”. This is controversial since employees must balance organizational loyalty with the potential benefits of solving a problem by shoving the organization in the spotlight (Travis, 2013). Addressing the Situation at Hand

To resolve this dilemma, Antonio should apply strategic methods like utilitarianism or individualism, to determine if reporting the fraudulent activity or remaining silent will be the best outcome for him and Empress. The two other ethical approaches Justice and Moral-Rights, may influence Antonio’s final decision in part. However, Travis (2013) believes “many situations fall in between these two easily recognizable ends of the spectrum. To surmise, Antonio can choose from the following actions: 1). To report the fraudulent insurance claim to Empress’ CFO; 2) To report the fraudulent insurance claim to the insurance company directly; 3) Allow Kevin to report the fraud or 4) Remain silent and let the insurance reimbursement pay for the computer upgrade he so desires. The Strategic Pros and Cons

Travis (2013) recommends ”before going public, potential whistleblowers need to ask themselves whether or not their actions prevent serious harm to an individual, such as repeated safety infractions, or to a group of people, such as fraud”. Based on the utilitarian approach, Antonio may...

References: Callahan, E. (1990). Employment at will: The relationship between societal. American Business
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Chen, A. S., Sawyers, R. B., & Williams, P. F. (1997). Reinforcing ethical decision making
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Daft, R.L. (2010). Management, 9th Edition. Cengage Learning: Ohio
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structure of publicly traded and privately owned insurance companies. Journal of Insurance Regulation, 31105-124.
Nwachukwu, S. S., & Vitell, S. (1997). The influence of corporate culture on managerial ethical
Public Law 107–204,107th Congress. Retrieved May 1, 2013 from
Travis, E. (2013). Ethical Responsibilities of Whistleblowing. Retrieved May 2, 2013 from
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