Question

When Cynthia, a credit analyst with Houghton Software, heard rumors of a company layoff, she asked her manager Todd if the rumors were true and if her job was in jeopardy. Although Todd knew that some lay-offs were coming, he told Cynthia not to worry about things. The following week, Cynthia's job was eliminated. In this situation, ethical issues regarding company information occurred because

Answer 1

Ethical issues arose when Cynthia was misled by her manager Todd regarding the security of her job at Houghton Software, implicating issues with corporate governance and corporate responsibility.

Step-by-step explanation:

When Cynthia, a credit analyst with Houghton Software, was laid off after being reassured by her manager Todd, ethical issues related to corporate governance and information transparency occurred. Although Todd may have been trying to protect Cynthia from worry or uncertainty, he misinformed her about the security of her job.

This situation involves the ethical responsibility of managers to provide accurate information to employees about job security, especially when they are directly asked. Additionally, the manager's failure to be truthful may lead to a breakdown of trust between employees and management, which can be harmful to the company's culture and integrity.

Ethical issues such as these highlight the importance of corporate responsibility, accurate communication, and adherence to ethical principles within the workplace.