Case Study

Auditing, Attitudes, and Absenteeism

Summary

In this case we explore another ethical dilemma along with socialization and communication as part of corporate culture. Motivation and group dynamics often play a role in problems between employees. Finally, does cooperate structure and position of power have something to do with ethical decision- making. Peter held a supervisory role in one of Canadas top four professional audit firms. The company was responsible for performing audits for a broad range of corporate clients. The company was very traditional, with a formalized structure like many in the industry. It is common for the best and brightest auditors to possibly become future partners in the firm. Even though Peter had progressed to a supervisory role, he was not considered partner material. Consequently, he had started to apply for jobs with other companies, but had not been comfortable telling his employer this. He needed time off his current position to go for job interviews, therein the dilemma. Peter reviewed his work tasks and responsibilities and began telling the people under his supervision that they should work at home on Fridays, so that he himself could arrange job interviews on that day. Working from home was unusual for this traditional firm, but members of Peters team did not question his instructions. He told the senior managers that he was conducting on-site audits on Fridays, when he was actually, attending job interviews. This continued for couple of months until some of his direct reports approached one of the senior managers with the situation. Peter was confronted by two senior managers and admitted to the situation. The managers view was that if Peter had told them what was happening, they would have been happy to give him the time off for interviews.

Discussion Questions1.Why do you think Peters direct reports kept quiet about thework from home directive for as long as they did ?Why did some of them eventually decide to inform management?

2. Do you think this situation would have played out if the organization had a more formal structure in place?Why or why not? 3.Do you think the lapse in Peters ethical behaviour indicates a broader problem with the firm s corporate culture?Why or why not ?If yes ,what should management do now to try to change its corporate culture?