UIT: Business Ethics and Compliance

On December 30, 2013, an account manager in the sales department of UIT India (UIT) filed a complaint with the company’s Ethics & Compliance Cell (ECC). UIT was the Indian branch of a leading U.S. multinational corporation. In his complaint to the ECC, the account manager alleged that he had suffered discrimination by his superior. He was called to a meeting with the ECC where he learned that his superior had received complaints from other employees and was already under investigation. That information made him feel hopeful that his complaint would be resolved quickly and favourably. However, his hopes were shattered when he was placed on a performance improvement plan the next day by the company’s human resource department. According to the plan, he would be terminated if he failed to deliver the set targets within two months. The account manager was furious and felt he was being treated unfairly. However, he was required to accept or refuse the improvement plan within 48 hours. His decision would not only determine his survival at UIT, but also impact his career prospects in the industry.

This case is suitable for management courses including business ethics, human resource management, and organizational behaviour. After completion of this case, students will be able to<ul><li>illustrate the concept of a psychological contract and its importance for organizational performance;</li><li>explore alternative responses to perceived discrimination in the conduct and decisions of a company’s management; and</li><li>conduct an ethical analysis of business transactions and decisions.</li></ul>

• Psychological contract, Ethics & Compliance, Exit, Voice & Loyalty, Performance Appraisal