Business Ethics MGMT-3480
Instructor: Steve Foran
Submitted By: Neelgiri Chatterjee
Date of Submission:February 2 , 2012 Facts
I am working for an executive recruitment firm that has recently been retained by a large
corporation to find appropriate candidates for the position of President of the corporation. If I can
find a suitable candidate for them my firm will receive one third of the President’s cash
compensation-salary and bonus, an amount in excess of $750,000. The CEO of the corporation is
controlling the search and he wants someone respectful towards him as the President. But then it
will be difficult for the firm to attract best pool of talents. I can’t do anything which offends the
BOD of the corporation and at the same time the recruitment firm bears no legal liability if a
hired candidate by them proves unsuccessful in his position.
The Corporation is looking for a highly qualified person as the position of the President but the
CEO who is controlling the search procedure wants someone who will be deferential towards
him even though the person is not qualified for President Position. I have responsibility to help
the Corporation in the process of hiring President.
The 4 key stakeholders in this situation are-
1. Me who is a specialized recruiter for the firm
2. CEO of the Corporation
3. The Recruitment firm
4. The Corporation Alternatives
In this situation we should evaluate the best possible alternatives that will solve the ethical
problem. Three possible alternatives can be considered as solution.
First of all, I can do everything the way the CEO wants. As a result there will not be any conflict.
Also, the firm does not need to worry about the success of the hired person as it does not bear
any legal liability.
Second of all, take a stand against the CEO and tell everything to BOD about the unethical
behavior of CEO. In this way, the Corporation will be aware of the mentality of CEO and may be
punish him. Also, a good qualified candidate will be chosen to serve the Corporation which will
enhance the profitability of the Corporation and reputation of the recruitment firm.
Last of all, I can quit the job and let things happen the way the stronger party wants. At the end, I
won’t blame myself for the unethical situation.
Impact of the alternatives on Stakeholders
The first alternative will give a light situation to handle for both the company. The CEO will get
a President the way he wants. The chance of getting an inefficient President as a result of CEO is
high which will hamper the reputation of the recruitment firm even though they don’t have any
legal liability after hiring. Also, the Corporation will be in a high danger of facing loss. But, the
firm will get a handsome payment package. Most importantly, the whole thing will be against
my value system and which will affect my self-respect. The second alternative will fire a huge conflict between the CEO of the corporation and the
recruitment firm. The CEO may be punished or gained so much support from BOD which will
lead enormous problem for the firm. The firm will lose all the payment benefit depending on the
BOD’s action towards CEO. My value system will not be hindered but there is a high possibility
that I will lose my job.
The last alternative will affect only me and my family. The CEO will get