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Above the Law

In: Business and Management

Submitted By artlover
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TO: Board of Directors of Brazos Manufacturing, Inc.
FROM: Independent Business Consultant – Christopher A. Spitzer
DATE: May 12, 2014
RE: An Executive’s Double Standard

RECOMMENDATION:
That the Board of Directors put to a vote the implementation of an Organizational Audit, to take within the current fiscal year.
EXECUTIVE SUMMARY:
When investigating ethical issues, departments that normally handle documentation are being ignored. For starters, the HR and payroll departments are being excluded from matters at hand in this case. An audit should be performed on the organizational structure of the Company. We are thankful that the Controller exposed these flaws while exposing potential fraud within upper management. However, if the Board decides to terminate the executive vice president, the underlying problem still exists. If the Company turns a “blind eye” to the problem at hand, the long-term implications will affect the Company’s image and bottom-line.

PROBLEM STATEMENT:
The proper chain of command regarding issues, especially when they involve ethics, are not being followed. Key information is withheld from proper management.
ALTERNATIVES:
Termination: Letting the unethical person go will reinforce the Companies positive image, but the person let go will continue the behavior elsewhere. If it is repeated, the unethical behavior that was committed here within the Company will come to surface again. This can lead to poor stock performance and financial losses as gets out.
Turning A Blind Eye: The Company will continue to function normally, without having to acknowledge, the unethical behavior at the level of management. However, it works both ways; the Company turns its eye, which allows unethical employees to continue working.

CONCLUSION:
By performing an Organizational Audit, the Company will be able to find other flaws within its…...

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