Case 2
Ben is an experienced sales representative at a large multinational information technology
company. He’s worked there for years and has developed strong friendships within the
company, especially with other sales reps. Ben has been good friends with Michael, another
sales rep, since they joined the company around the same time.
Over the last months, Michael shared some personal struggles with Ben, and Ben was doing
his best to be a supportive friend. Ben knew that Michael was dealing with some serious
financial issues at home and that he was barely making ends meet, trying to support his wife
and young kids while also having to financially support his aging parents. Michael let on that
he was taking some risky moves at work to come up with some more money and that he was
really starting to worry about it. But he never fully disclosed what that entailed.
Unexpectedly, Michael abruptly left the company, leaving Ben shocked and suspicious about
the true nature of his colleague’s activities. Ben was assigned to take over Michael’s sales
territories and get back on track. During the transition, he discovered the extent of the
financial harm that the company suffered as a result of Michael’s actions. Through careful
examination of sales transactions and accounting records, it became evident that Michael had
engaged in a fraudulent scheme.
Michael had orchestrated a deal with an external company whereby he booked a large
number of orders with delayed delivery dates. He received upfront commission payments
(meaning he was paid the commission when the sale was made but not when the order was
fulfilled) by his own company for nearly one hundred orders, and then split that commission
with the external company. In collaboration with the external firm, Michael continuously
pushed back the delivery dates every few months, ensuring the orders were never fulfilled.
Despite the absence of payment from the external company, the tech company continued
paying commission to Michael for these fictitious sales. Essentially, Michael was being
compensated for sales that were listed as orders but that were never actually fulfilled
(payment for the sale was due on delivery).
Reflecting on their past conversations, Ben grew increasingly uneasy, realizing that Michael’s
desperate need for quick money through sales commissions had likely driven him to engage
in this fraudulent behavior. Ben felt a sense of responsibility and questioned whether he could
have prevented the situation, and now, with Michael gone from the company with no
repercussions, he wondered what all of this would mean for him.
As Ben assumed the responsibility of taking over Michael’s sales territory, the company
began an internal investigation to seek any information that could shed light on the issue.
This presented Ben with a moral dilemma. During the investigation, Ben was asked if he
knew any information that might help the company understand and resolve the issue.
Michael’s actions - the deceit, dishonesty, and disregard for responsibility - deeply troubled
Ben as they clashed with his own moral compass.
While Ben wanted to uphold his personal integrity as an individual and an employee, and
disclose all he knew to the company, he worried that doing so might jeopardize his own
position and potentially lead to termination if he were deemed complicit in Michael’s actions.
Additionally, Ben empathized with Michael’s difficult circumstances, understanding that he
only resorted to fraud out of desperation. A part of him felt inclined to protect his friend and
maintain their friendship, despite the wrongdoings committed.
Feeling caught between conflicting interests, Ben wondered: should he choose to remain
silent and move on as quickly as possible, now that Michael has left the company, and avoid
giving any information? After all, exposing the truth could lead to serious consequences for
Michael, who was already dealing with significant challenges. It could also cost Ben his
friendship. But, even if the fraud was wrong, Ben knew his huge company wouldn’t really
feel a big financial hit from the loss and that the product in question was not a life or death
matter. Not every wrong can or even should be righted, Ben thought. Moreover, his job and
his reputation as a sales rep and his company’s image might all be at stake if he speaks up.
What should Ben do?
Questions to Consider:
1. Please identify what you think are the most significant ethical values at stake in Ben’s
decision? It will be important to identify these values on all sides of this dilemma.
2. What struck you as the most important aspect or element of this case study and why
did it stand out to you?
3. When faced with the knowledge of his colleague’s fraudulent actions, what ethical
considerations should one weigh in deciding whether to disclose the truth to the
company, even if it may have personal and interpersonal consequences?
4. What actions can Ben take to reconcile loyalty to his friend, his commitment to
integrity, and his own professional well-being?
