Question: You work for Holstead Communications, a midsized digital phone, cable, and internet service provider in rural New Mexico. Your company has always provided customers with
You work for Holstead Communications, a midsized digital phone, cable, and internet service provider in rural New Mexico. Your company has always provided customers with two billing options: paperless or traditional. As a cost-saving measure, the company has decided to discontinue its traditional billing option. All customers who choose the traditional billing option will be charged a yearly billing fee of $25. This fee will offset printing and mailing costs of $1.5 million annually.
The CFO and legal team have determined that Holstead is legally obligated to announce the fee increase to its customers. Nevertheless, to avoid customer loss, negative press, and a potential decrease in revenue, Holsteads CEO has decided not to publicly announce the new fee.
You are uncomfortable with the companys decision. You mention your concerns to your coworker at lunch. Your co-worker seems fine with the situation, proclaiming that a paralegal friend in the companys legal department says the chief legal counsel believes the company will not get caught. After all, your co-worker notes, isnt it better to provide a service with a hidden expense than to discontinue it altogether?
Holstead Communications decision in this scenario most likely stems from what cause?
Uncertainty about whether the action is right or wrong
Unwillingness to take a stand for what is right
Excessive emphasis on profits
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
