Case Study on Ethics - The NewCom Situation (O.B. Ethics)

Read the case below and answer the questions that follow:

Wilson Mutambara who grew up in the slums of Stanley, the capital of the African country of Rambia. Being very intelligent Mutambara earned a scholarship to study in the United States. He received an MBA and started working for a company called NewCom. He worked at NewCom for three years in Atlanta. NewCom expanded their business overseas to Rambia and offered him a transfer to his hometown, which he happily accepted. The company provided all their employees over seas an allowance of two thousand dollars for rent, utilities and servants. The two thousand dollars is an added bonus because most neighborhoods of Stanley are unsafe and unfit compared to the western standard of living. NewCom wants all their employees to live in safe neighborhoods that are in style and appropriate to the companys image.

In order for employees to claim their two thousand dollar allowance they are to turn in receipts which Mutambara did every month. Mutambara traveled frequently and was often away from home. After fifteen months of being in Rambia a fellow employee of Mutambara named Garman heard from a Rambian customer that Mutambara was living in Old Town, which is a Rambian ghetto. With out telling anyone, Garmen investigated the matter further and confirmed that it was true, Mutambara was living with relatives in Old Town. The house in the slum that Mutambara was staying in could not have cost more than three hundred dollars a month to stay in, assuming Mutambara lived by himself, which he clearly was not.

Germen then reported what he heard to his supervisor Barbara Weston. Weston confronted Mutambara on the matter. Her concern on the issue was that the housing conditions that he chose to live with were unbecoming of an employee of his caliber at the company. Mutambara admitted his apartment was less then two thousand dollars but defended himself by saying every other NewCom employee receives two thousand dollars a month. If I live economically, why should I be penalized? One of his justifications for his actions was that every employee in the company received the same allowance and exempting him from the same payment plan would amount to discriminatory actions by the company.

He also argued that wherever he chose to live was his choice and that he did it to support his kin back home. He stated that it would be unreasonable for him to live in a mansion while his kin did not have enough food to eat. Lastly, he accused the company of being insensitive to the feeling of the people living in the slums by terming it as unseemly.

Questions arising from the case study:

1. Define the Utilitarian, Rights, and Justice Theories/Approaches -

2. How would the rights theory apply to this case?

3. How would the Justice theory apply to this case?

4. How would the Utilitarianism theory apply to this case?