Week 1 EOC: Chapter 1, Question 3

a. Is it legal?

Yes this is legal but also unethical she knew about the late delivery issue and the maples should have been given to the company not used for a party. "Sometimes it may not be clear whether an actual course of action is illegal or simply wrong. Put another way, an activity (including an accounting activity) may be legal, but still the wrong thing to do" (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.)" If there are no company policies forbidding the acceptance of "gifts", then it is probably legal to take the hot dogs home.

b. Does it hurt anyone?

No it did not the hot dogs were free and the company will still receive their delivery weather it is late or not. The two cases of hot dogs would benefit laurine because she would be using them for her personal barbecue. These cases technically are the property of the business, not the manager. The cost of these cases will most likely be paid by her business through future price increases.

c. Am I being honest?

She was being totally dishonest. She could have told the company about the samples and they could have given them to their customers as a promotional event to generate business. She may not be able to professionally handle future problems with the supplier, especially if she feels that the supplier will "reward" her again for future mistakes.

d. Would I care if it happened to me?

Yes I would care because if my food purchaser was not including me with this type of information I would question her loyalty to my business. Even the smallest things can make or break the business, keeping cost low is a major factor.

 

e. Would I publicize my action?

No I would not, having a barbeque with friends is disrespectful. She probably would not want her boss to know.

f. What should be done with the two cases of hot dogs?

The two cases should have been given to the owner/company so they could use them to drive more customers to their business. The company could have created a promoation and maybe do some social media advertising to get the word out.