Ethics Case #7

[scott]

Its been a while since Ive posted an ethics question here. Let's try a new one...

I recently used this as an extra credit question on a quiz for a Small Business Management Class I'm teaching at a local community college. Its not unique to insurance - interesting issues though.

It has been reported in some circles that Apple has fired 800 employees for applying for the $100 rebate on apple iPhones that were given to them free, as employees.

See - http://arstechnica.com/journals/apple.a ... one-credit

This may or may not be true. Let's assume it is. Let's also assume that the terms of the rebate clearly exclude employees.

If you ran Apple, would you have fired the offending employees? All of them? Why or why not?

What if in the 800 were 50 of your best store managers?

[wlunday]

Scott, a good Q!

In a business as high tech as Apple I'd have simply registered the I-pods internal serial numbers and electronically noted them as being ineligible for the promo. When a request came in the "owner" would have received a letter (or e-mail) stating they were ineligible. Much easier than firing people.

Now, if there was an organized scam going on... that is a different situation altogether!

Swymmer

[wrxnut25]

If the rebate excludes employees, I would have notified the applicants that they were ineligible for the rebate and left it at that.

[TomZ]

They were given free phones and then they turned in a rebate that specified employees not eligible.

I'd fire every one of them for trying to steal from the company.


Tom

[Big Dog]

If you know the history of Apple, this is known as "getting Steve'd".

Very heavy handed by Apple. As with the others, a simple letter of ineligibility would have been adequate. Apple may have opened themselves up to an EPL suit.

[Sundance]

I'm going with the ineligible letter to each ee with perhaps a "in the future" type comment on it...

[scott]

I've been asked in several emails to provide my take on this.

In the case the employees got a phone for free then tried to collect a rebate. The rebate form made it clear that employees were ineligible.

No honest person would think that they were entitled to both a free phone and $100. It is not logical.

I would fire every employee who applied for the rebate. They are not honest. I would dare them to sue me. There is no cause of action. Stealing from your employer is wrong. As I fired every employee who stole I could not be found to be discriminating. I'd spend $10m to defend the firing and would still come out ahead. (Remember this is Apple we are talking about)

Further, I would bet money that these were not my 800 best employees. Good employees would not consider such. Also, I would bet that these same people have stolen before - or lied - or hurt the company in some other way.

Next, the firing of these employees would improve moral in the company. Good people would know that poor behavior is not tolerated.

Lastly, you may have issues with Apple or Jobs. That does not make stealing acceptable. To suggest such means that your employees can steal from you when they are unhappy.

In my consulting work my advice regarding employees is always, "Hire slow, fire fast."

Character counts.

[Porter]

Wouldn't it be interesting to find out that Apple did this on purpose to get rid of 800 bad employees? If they did that would be genius. But you are absolutely right Scott. I would ace the employees that stole too.