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Empress Luxury Lines Companys Fraud and Ethics
Summary
Empress Luxury Lines has been grappling with economic constraints that hit the company since 1990. Predicting lucrative opportunities due to economic growth, the company ordered more fleet of ships hoping to pay them in due course. Unfortunately, stock markets grumbled down during the 1990s, September 11, 2001 terror attacks, and the outbreak of Norwalk virus scared away cruisers. Rising costs of fuel and hurricanes in 2005 also severely hit the companys lucrative business. The company has been surviving on the verge of collapse because it has been primarily struggling to pay for the fleet of ships and that is why it has not upgraded its computer systems.
Antonio Mendez has been working for two years as a manager and while insisting on the upgrading of the computer system. When he arrived, he heard that the company has been defrauding insurance companies successfully but he never believed the rumors. During his time, Antonio Melendez witnessed the companys supervisor, Phil Bailey attributing their failure to upgrade the computer system to the thunderstorms and further ordering computer technician Kevin Pfeiffer to assess the damages for the insurance to compensate.
Realizing that the assessed value was too low, Phil Barley ordered Kevin Pfeiffer to unplug underground cables to inflate the damages to defraud the insurance company. Although Kevin Pfeifer refused to obey the instructions, Matt went ahead and unplugs the underground cables. Noting that this was a case of fraud, Antonio Melendez and Kevin Pfeifer contemplated their next course of action.
Antonio Melendezs decision if he applied the utilitarian approach to decision making when determining obligations to Kevin Pfeiffer
If Antonio Melendez applied a utilitarian approach in his decision, he would report the case of the fraud to the insurance company to uphold the integrity of the company and prevent the misuse of subordinate staff in the perpetuation of the fraudulence in the company. In a utilitarian approach, only the top management will be at a loss while the subordinate and insurance companies will benefit from the decision.
On the other hand, if Antonio Melendez applied an individualistic approach in his decision, he would not report the fraud to the insurance company lest he loses his job or receives a severe penalty. Since the company does not provide for a mechanism of confidentiality and protection of whistle-blowers, then there is a high probability that there will be victimization on individuals who deem out of order.
Response to the situation and its level of moral development
If I were in Antonios position, I would report the fraud to the insurance companies to uphold the integrity of the company and my fellow employees who are suffering due to poor computer systems and unquestionable orders to carry out fraudulent activities in the company. The decision to report the fraud to the insurance company has more benefits than losses because the company will benefit in terms of integrity and at the same time, it will save insurance companies from compensating for the fraudulent damages. My level of decision is at the post-conventional level of moral judgment because it involves independence, sacrifice, and principles that seek to benefit the majority rather than self.
Justification of hiding employment history in case of Melendezs and Pfeiffers firing
It is not justifiable for Antonio and Kevin to remove all traces of their employment at the Empress Luxury Lines from their resumes if fired because of their integrity. They will have a good reason for explaining to the prospective employers regarding their employment at the company. Since they did stand on their principles and did not allow themselves to be part of fraudulence, then, their experience at the company is very essential in the resumes as it would depict how they made hard choices by risking their employment at the expense of their noble stand.
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