PIYALI MESHRAM

PGP13169
DILEMMA COMPETING LOYALTIES JESSICA’S

1. What are the ethical issues in the case?

The ethical issues in the case are:

Conflict of interest: Jessica's loyalty to her company and her friend Michael.
Fraud: Michael's actions of submitting false expense reports and potentially stealing from the
company.
Whistleblowing: Jessica's potential obligation to report the wrongdoing of her friend and
colleague.

2. What are the alternatives available with Jessica and what will be the consequences?
What Ethical Lens will you use or framework will you use to justify your stance?
The alternatives available to Jessica include:
• Reporting Michael's wrongdoing to the company and potentially the authorities, risking
damage to her relationship with him and potential retaliation from him or the company.
• Confronting Michael directly and attempting to persuade him to stop his fraudulent
behavior, risking potential harm to their friendship.
• Ignoring the issue and continuing to work with Michael as normal, potentially enabling
his fraudulent behavior and violating her ethical obligations as an employee.
The PERMA framework is a positive psychology framework that can be applied to
ethical decision-making. It stands for Positive emotions, Engagement, Relationships,
Meaning, and Accomplishment.
• Positive emotions: If Jessica decides to confront Michael directly about his fraudulent
behavior, it may preserve their friendship and lead to positive emotions between them.
However, if Michael continues his behavior, it may lead to negative emotions and harm
their relationship.
• Engagement: If Jessica decides to report the wrongdoing, she may become more
engaged with her ethical obligations as an employee and may feel a sense of
accomplishment for doing the right thing. However, if she chooses to ignore the issue,
she may feel disengaged and unfulfilled in her role.
• Relationships: Jessica's decision will likely have an impact on her relationship with
Michael, as well as potentially with other colleagues and stakeholders in the company.
If she decides to report the wrongdoing, she may strain her relationship with Michael
but may also build stronger relationships with others who appreciate her ethical
decision-making.
• Meaning: Jessica's decision will also have an impact on her sense of meaning and
purpose in her work. If she decides to report the wrongdoing, she may feel a sense of
meaning and fulfillment in upholding her ethical obligations and protecting the interests
of the company and its stakeholders.
 PIYALI MESHRAM
PGP13169
DILEMMA COMPETING LOYALTIES JESSICA’S

• Accomplishment: If Jessica decides to report the wrongdoing, she may feel a sense of
accomplishment for taking a difficult but necessary action. However, if she chooses to
ignore the issue, she may feel unaccomplished and unfulfilled in her role as an
employee.
The Ethical Lens that can be used to justify a stance on this issue using the PERMA
framework is the Virtue Ethics Lens. This lens focuses on developing virtues or positive
character traits, such as honesty, integrity, and courage, and using those traits to guide ethical
decision-making. Applying this lens to the PERMA framework, Jessica may prioritize virtues
such as honesty and integrity in her decision-making, even if it means risking harm to her
relationship with Michael or potential negative consequences for herself. She may also
prioritize the importance of building positive relationships with colleagues and stakeholders
through her ethical actions.

3. Evaluate the steps that Jessica went through that uncovered the fraud. Were her actions
appropriate? Were they Legal? Were they ethical?
Jessica's actions to uncover the fraud, including reviewing financial records and confronting
Michael about his behavior, were appropriate and legal. However, whether her actions were
ethical may depend on the consequences of her next steps, such as whether she decides to
report the wrongdoing or not.

4. Should Jessica report the wrongdoings?

Whether or not Jessica should report the wrongdoing depends on her ethical obligations as an
employee and her personal values. I she believes that her loyalty to the company and its
stakeholders outweigh her loyalty to Michael, then she may have an obligation to report the
fraud.

5. What are the alternatives the CEO could pursue in regard to Micheal's wrongdoings?
What are the alternatives that the CEO has in regard to Jessica's admission?
The CEO could pursue several alternatives in regard to Michael's wrongdoing, such as
terminating his employment, conducting an investigation, or taking legal action. In regards to
Jessica's admission, the CEO could offer support and protection to encourage her to report the
wrongdoing or take other appropriate actions, or could potentially retaliate against her for her
actions. The CEO's actions should prioritize the company's ethical and legal obligations, as
well as the well-being of its employees and stakeholders.