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We are in the beer business.

When our chief chemist died last year, we pirated the

chief chemist of our competitor who has an almost similar beer, when he moved
over to our company, he offered me the secret beer formula of our competitor. I
turned the offer down as I felt it would be unethical to use it. Lately, our chief
chemist has brought us a lot of problems, he has become a source of discontent in
our laboratory. He has become an autocrat who loves to humiliate his subordinates
in public. As a result of his nasty behavior, four of our very competent chemists who
have been with us for years have resigned. I tried correcting him thrice, but to no
avail. His character flaw is so ingrained that there is no possibility to change it. I
thought of firing him, but I know if I do, he will go to our competitor an sell them our
valuable beer formula.

Peruse the case

Define the problem/s correctly
Identify the causes of the problem/s
Recommend/justify the action/s to be taken
Specify how the problem/s could have been avoided
Formulate a policy to be used as a guide in future situations

I. Problem/s:
Conflict within the workplace due to the chief chemists behavior towards his

Not only is there a lack of harmonious coexistence within the laboratory, but
also distaste of the workers towards the chief chemist
Number of workers have decreased since the pirating of the chief chemist
Possibility of exposure of the formula being used by the company
Stubbornness of the chief chemist to show proper decorum in the workplace

II. Cause of the problem/s:


Lack of harmonious coexistence was brought forth by the undesirable

treatment of the chief chemist towards those around him
Other chemists have resigned due to this behavior illustrated by the pirated
chief chemist
Chief chemist may sell the secret formula to competitor company out of
sheer hostility
Attempts made by the manager to reprimand and alter the attitude of chief
chemist were proven to be futile

III. Recommend and justify the action/s to be taken


Since it is claimed that the chief chemists character flaw is so ingrained

that the possibility for change is nonexistent, and that this has affected the
work environment to the extent of losing workers, then the corresponding
sanction for the chief chemist could be termination from the job
a. There is a chance of exposing the beer formula to the competitor
company, BUT since the reason why the other chemists left was because
of the chief chemists lack of proper treatment towards them, then they
may be reclaimed as part of the company and come up with an improved

formula, since the formula is merely a dependent variable a product is

only as good as its producers
b. The inhabitable working environment could pose a problem in the long run
(as the loss of employees over time is a long term dilemma), whereas the
possibility of having the competitor company buy the formula from the
chief chemist in the event that he is fired would merely be short term. This
situation is only a tradeoff of both, and the eradication of the latter
problem would present a situation that is more favorable to the company.
c. In the event that the chief chemist would try to sell the formula to the
competitor company, this then presents a question of ethical incentive
not using your companys beer formula, because with this comes the risk
of being exposed that it isnt their own vs economic incentive getting
more profit by coming up with something better. Pitting one against the
other, the ethical incentive outweighs the economic incentive, because
using your companys formula would be infringement of ownership rights,
and the act of buying it from the chief chemist is considered as an act of
industrial espionage (The theft of trade secrets by the removal, copying or
recording of confidential or valuable information in a company for use by a
On the other hand, a less drastic course of action would be suspension, if one
sees it fit.

IV. Specify how the problems could have been avoided


Thorough employee assessment should be conducted in order to ensure that

the qualities a potential worker possesses are those that could be beneficial
and not as illustrated by the chief chemist detrimental to the overall
wellbeing of the corporation
In the event of misconduct, corresponding sanctions should be imposed on
those who failed to carry out their duties in the expected manner

V. Formulate a policy to be used as a guide in future situations

- All employees of the corporation must illustrate proper decorum and respect
towards his/her constituents and colleagues. This includes the prohibition of
uttering words and/or acting in ways that may be morally damaging to the other.
Failure to comply would result to the following measures to be taken:
a. Offense #1: Oral Reprimand by his/her supervisor
b. Offense #2: Oral Reprimand by the manager
c. Offense #3: One week suspension from work
d. Offense #4: One month suspension from work
e. Offense #5: Termination
In such cases that the ensuing issue may pose as a threat to the company itself
(which are to be determined by the manager through the observation of

circumstances leading to the situation at hand) the corresponding punishment

would ultimately vary at the discretion of the manager.