Northouse, Leadership 9e
SAGE Publications, 2021
Case 15.2: Reexamining a Proposal
Case Synopsis and Analysis
David Jones seeks to start a printing business and contacts a reputable professional employer
organization (PEO) to obtain an estimate for human resource services. The estimate included
costs for payroll, benefits, and the like and was sought before David opened or purchased his
business.
David then purchased an existing printing company and contacted the PEO to sign a contract
for human resource services at the previously quoted price. Sometime after signing the
contract, the PEO realized that the price far exceeded any reasonable service offering. The
contract was, indeed, unfair and not comparable to other contracts with similar businesses.
Learning Objectives:
• Students should recognize some of the complexities of ethical decision-making.
Answers to Questions in the Text:
1. What role should ethics play in the writing of a proposal such as this? Did the PEO do
the ethical thing for David? How much money should the PEO have tried to make?
What would you have done if you were part of management at the PEO?
Students will waver on this a bit. However, most students will argue that ethics
Northouse, Leadership 9e
SAGE Publications, 2021
2. From a deontological (duty) perspective and a teleological (consequences)
perspective, how would you describe the ethics of the PEO?
Utilitarianism states that we should behave so as to create the greatest good for the
3. Based on what the PEO did for David, how would you evaluate the PEO on the
ethical principles of respect, service, justice, honesty, and community?
4. How would you assess the ethics of the PEO if you were David? If you were among
the PEO management? If you were the salesperson? If you were a member of the
printing community?
Northouse, Leadership 9e
SAGE Publications, 2021
Potential Teaching Approaches:
This case study is conducive to group discussions and exercises. Below is a way to structure
a class based on Ethical Leadership and Case Study 15.2:
• Read Case Study 15.2.
• Lecture on Chapter 15.
Exercises for This Case Study:
1. Using the utilitarian approach, students should analyze whether the contract
should be revised. Individually or in small groups, they should develop scenarios
2. In small groups, students need to develop a plan for the PEO so that this does not
happen again. Essentially, this requires students to step back in time and consider
3. In a short essay (200–250 words), ask students to explain why race plays a role in
this case. Why does that case element challenge an ethical lens? Should it?