Case Study | Hong Kong Business Ethics Development Centre

An Ethical Dilemma Case Study

Sharon is a branch manager of a bank. She has established a good relationship with clients, especially Kit, the owner of a trading company. As Kit's company has recently suffered from financial problems, Kit urges Sharon to do him a favour and promises to assist her son to secure a place in the school summer camp. Sharon is torn among family commitment, friendship, work responsibilities and personal values…

What ethical dilemma does Sharon face?

How can Sharon analyse the dilemma and make a sound decision by applying the Self Photos / Files - ethic_plus_wording Model?

Analyse

The dilemma which Sharon faces is whether:

ACCEPT

She accepts Kit's offer to secure her son's place in the school summer map, and helps Kit get the bank loan even though he is not eligible; or

REJECT

She rejects Kit's offer, which will sacrifice her son's opportunity to join the school summer camp and jeopardise their friendship.

Using Self Photos / Files - ethic_plus_wording Model to analyse

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E T H I C S

Establish the relevant facts

FACTS

Sharon wants her son to join the school summer camp and Kit is the influential chairman of the Parent-Teacher Association of the school.

Kit is a close friend of Sharon and a client of Sharon's bank.

Kit offers to secure Sharon's son a place in the school summer camp if Sharon approves the bank loan to help him get through his financial difficulties.

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E T H I C S

Take stock of the stakeholders involved

Involved Parties

Sharon

Kit(Sharon’s friend)

Sharon's son

Sharon's Bank

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E T H I C S

Have an objective assessment of each stakeholder’s position

Sharon

As a bank manager, Sharon should perform her duty according to the bank's policies and guidelines when processing loan applications.
Sharon is personally obliged to help her friend (Kit) and her son.

Kit

Kit suffers from financial difficulties and urgently needs a bank loan, but he is not eligible.

Sharon's son

Sharon's son wants to join the school summer camp where competition is fierce.

Sharon's Bank

It is against the bank's interest to approve a high risk loan which may turn into a bad debt.

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E T H I C S

Identify viable alternatives

Please make ONE choice at a time for Sharon

Option 1: Accept Kit’s offer and help him get the bank loan even though he is not eligibleOption 2: Accept Kit’s offer but only help him to find another bank which may eligibly approve a bank loan to KitOption 3: Reject Kit’s offer but still help him get the bank loanOption 4: Reject Kit’s offer and decline his bank loan application

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E T H I C S

Compare and evaluate each alternative with the PLUS Standards

Sharon's Choice

Professional / trade-related /company code of conduct

Legal requirements

Uncompromising self-values

Sunshine Test

Make Another Choice Next

E T H I C S

Select the best course of action

Sharon Could...

Decline Kit's offer;

Explain to her son about positive values of fairness and integrity;

Advise and assist Kit in applying loan via other proper means and channels;

Discuss with the bank management for further advice;

or more…

Case Study Analysis – Sharon’s Choice

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