Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Suppose you are a sales rep for a major pharmaceutical company. You get paid by commission,
so the more drugs you sell to doctors, the more money you make. You know that sales reps in
your company have been visiting doctors and telling them that if they prescribe your company’s
1. Is it unethical to be flexible and break the law against kickbacks?
2. Why are kickbacks illegal? Who benefits from kickbacks, who gets hurt by them, and
how?
3. What would you do in this situation? (Would you start giving kickbacks yourself? Blow
the whistle on sales reps to their managers? Blow the whistle to an outside source like the
government or the media? Do nothing?)
Answers vary.
Join the Discussion 7-2: Delegating Destroying Documents
Arthur Andersen, a consulting company, was taken to court for destroying evidence that could
have been used in court to support allegations of illegal activities. Arthur Andersen destroyed
evidence related to the auditing of Enron to protect both companies from being found guilty of
engaging in illegal business practices. Arthur Andersen claimed that it was not trying to destroy
incriminating evidence, but was simply destroying records, which is done periodically.
Destroying documents is, in fact, routine. The key question is this: “What is being destroyed, and
why is it being destroyed?”
1. Is it ethical and socially responsible to delegate the task of destroying documents that
may potentially be used as evidence of wrongdoing?