Carla knew something was wrong when Bob got back to his desk. Bob had been with Aker & Aker Accounting for seventeen years. He had started there right after graduation and had progressed through the ranks. He was a strong supporter of the company, which was why Carla had been assigned to him.

Carla had been with Aker & Aker (A&A) for two years. She graduated in the top 10% of her class and passed the Certified Public Accounting studies on the first try. She had chosen A&A over one of the Big Six firms in Ohio, where her husband, Frank, managed a locally owned machine tools company. She and Frank had just purchased a new home when things started to turn strange with Bob, her boss.

"What's the matter, Bob? Carla asked.

"Well, you'll hear about it sooner or later. I've been denied a partner's position. Can you imagine that? Working sixty- and seventy-hour weeks for the last ten years and all they can say is 'not at this time,' complained Bob.

Carla asked, "So what else did they say?

Bob turned red and blurted out, "They said maybe in a few more years. I've done all that they've asked me to do. I've sacrificed a lot, and now they say a few more years. It's not fair.

"What are you going to do? Carla asked.

"I don't know, Bob said, "I just don't know.

Six months later, Carla noticed that Bob was behaving in an odd manner. He left early and came in late. One Sunday, Carla went into the office for some files and found Bob copying some of the software A&A used in auditing and consulting. A couple of weeks later, at a dinner party, Carla overheard a conversation about Bob doing consulting work for some small firms. At work Monday morning, she asked him if what she had heard was true.

Bob responded, "Yes, Carla, it's true. I have a few clients that I do work for on occasion.

"Don't you think there's a conflict of interest between you and A&A? asked Carla.

"No, said Bob. "You see, these clients are not technically within the market area of A&A. Besides, I was counting on that promotion to help pay some extra bills. My oldest son decided to go to a private university, which is an extra $20,000.00. Plus our medical plan at A&A doesn't cover some problems my wife has. And you don't want to know the cost. The only way I can afford to pay for these things is to do some extra work on the side.

"But what if A&A find out? Carla asked. "Won't they terminate you?

"I don't want to think about that. Besides, if they don't find out for another six months, I may be able to start my own company.

"How? asked Carla.

"Don't be naive, Carla. You came in on that Sunday; you know.

Carla realized that Bob had been using A&A software for his own gain. "That's stealing! she said.

"Stealing? Bob's voice grew calm. "Like when you use the office phones for personal long-distance calls? Like when you decided to volunteer to help out your church and copied all those things for them on the company machine? If I'm stealing, you're a thief as well. But let's not get into this discussion. I'm not hurting A&A and, who knows, maybe within the next year I'll become a partner and can quit my night job.

Carla backed off from the discussion and said nothing more. She couldn't afford to antagonize her boss and risk bad performance ratings. She and Frank had bills, too. She also knew that she wouldn't be able to get another job at the same pay if she quit. Moving to another town was not an option because of Frank's business. She had no physical evidence to take to the partners, which meant that it would be her word against Bob's, and he had ten years of experience with the company.

Questions

1. What are the ethical and legal issues of the case?

2. Assume that you are Carla, discuss your options and what the consequences of each option might be.

3. Assume that you are Bob, discuss your options and what the consequences of each option might be.

4. Discuss any extra information you feel you need in order to make your decision.