You are a vice president of human resources, negotiating with a union representative for a new labour contract. The union refuses to sign a new contract unless the company agrees to raise the number of paid holidays from six to seven. Management estimates it will cost approximately $220,000 for each paid holiday, and argues that the company cannot afford to meet the demand. However, you know that, in reality, money is not just the issue – the company simply doesn’t think the union’s demand is justified. To convince the union leaders that they should withdraw their demand, you have been considering these alternatives: (a) tell the union that the company simply can’t afford it, without further explanation; (b) prepare erroneous financial statements that show that it will cost about $300,000 per holiday, which you simply can’t afford; and (c) offer union leaders an all-expenses paid “working”trip to a Florida resort if they will simply drop the demand. Do any of the strategies raise ethical concerns? Which ones? Why?

Understanding Business
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ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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You are a vice president of human resources, negotiating with a union representative for a new labour contract. The union refuses to sign a new contract unless the company agrees to raise the number of paid holidays from six to seven. Management estimates it will cost approximately $220,000 for each paid holiday, and argues that the company cannot afford to meet the demand. However, you know that, in reality, money is not just the issue – the company simply doesn’t think the union’s demand is justified. To convince the union leaders that they should withdraw their demand, you have been considering these alternatives: (a) tell the union that the company simply can’t afford it, without further explanation; (b) prepare erroneous financial statements that show that it will cost about $300,000 per holiday, which you simply can’t afford; and (c) offer union leaders an all-expenses paid “working”trip to a Florida resort if they will simply drop the demand.

Do any of the strategies raise ethical concerns? Which ones? Why?

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