“Resolving Ethical Business Challenges”

Topics: Hurricane Katrina, Employment, New Orleans Pages: 2 (628 words) Published: February 6, 2013
“Resolving Ethical Business Challenges”
Peter had been a human resource (HR) manager for 18 years and vice president for 2 more years for Zyedego Corporation, a small company in New Orleans. In the last decade, there have been many changes to what potential/actual employees can be asked and what constitutes fair and equitable treatment. Frankly, the situation Peter was in was partly his own fault. The first issue began when Gwyn, one of Peter’s HR managers, was planning on rehiring Dana Gonzales but found out that Dana was pregnant. Because of the “rough” condition of the workplace, Gwyn was concerned for Diana’s safety. If Dana were rehired, employees’ hourly wages should be decreased by 25 percent because the company had experienced setbacks during the hurricane and had to work with a reduced budget. In addition, Gwyn had some concerns over Dana’s citizenship because her passport appeared to be questionable. Dana had been slowing providing the documents since the flood destroyed the original documents. Then Dana stated that if not rehired she would go to a competitor and expected the company to pay severance of two weeks’ wages for the time she was out of work during the hurricane. Another issue is the hiring of truck drivers. Zyedego hires many truck drivers and routinely requests driving records as a part of the preemployment process. Several of the potential new hires have past DWI records. Gwyn has hired some drivers with infractions to secure the necessary number of drivers needed to the company. Zyedego has even deeper problems when Hurricane Katrina killed Guy Martin. The company’s death benefits provide only 50% of the deceased pension for a surviving spouse. Also, because the body had not been found, there was legal question of death. Darell Lambert, the chief adjuster for Zyedego’s insurance and pension provider, proposed that it will be helpful for the company’s recovery and survival to reduce the total reimbursements by 40%. Here is...
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