Texas Independent College Foundation

Case Study –Frequent Flyer
Company policy strictly states that frequent flyer miles and other travel premiums earned while traveling for the company are the property of the company, not of the employee.

Your boss’s brother has passed away. Your boss is visibly distraught as he makes arrangements to attend the funeral. You overhear him instruct his assistant to book a flight to his brother’s funeral with a free ticket he received when, during a recent business trip, he volunteered to give up his seat on an overbooked flight.

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Case Study – Business Expense
You work for a company that sells a product used in manufacturing certain goods. Your sister is a representative for a manufacturing company that uses the products you sell. Recently, she bought her entire annual purchase from you over dinner. You picked up the check for that dinner and charged it on your company credit card.

The past few days have been particularly difficult for your sister. She lost her job during a corporate restructure. You take her to dinner and charge the meal on your company credit card.

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Case Study –A Bidder’s Appreciation
As leasing agent for your company’s large fleet of vehicles, you are required by company policy to get at least three bids and award the contract based on the bidder’s ability to meet your company’s needs as specified in a formal request for bids. In response to such a request, you receive competitive bids from five vehicle suppliers. After careful scrutiny, you award the contract, making a decision that you believe is prudent and in the best interest of the company.

The next day, you receive at your home a Fed-Ex package from the successful bidder. The package contains a thank you note and $500 worth of gasoline credit cards intended for your personal use.

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CASE STUDY – THE UNIVERSITY BENEFACTOR
Mrs. Edith Smith-Jones has been a benefactor of Hilltop University, a small private liberal arts college, for many years, as was her husband prior to his death. They met and married at the University back when it was still Hilltop College with about one-quarter of the student population it has today, and over the years they were instrumental in funding the Smith-Jones residence hall, the Smith-Jones chapel, and the Smith-Jones technology center. It is common knowledge that Mrs. Smith-Jones has made provisions in her will to leave the University the bulk of her estate, amounting to several million dollars.

The new university president, Dr. Morgan, is well aware of the generosity of Mrs. Smith-Jones and her late husband, and one of his first priorities upon arriving at the university was to call on Mrs. Smith-Jones and take her to lunch.

During lunch, Dr. Morgan expressed his appreciation for all that Mrs. Smith-Jones and her husband had done for the University. Mrs. Smith-Jones replied that although she was disappointed that Dr. Morgan’s predecessor had left the university she felt certain that Dr. Morgan would make a fine president for her dear alma mater. This was especially important to her, she said, since the eldest of her many grandchildren would be attending in the fall. Unfortunately, she said, her grandson, Edgar, was very willful and had refused initially to attend Hilltop U. However, since he had been expelled from two previous colleges due to academic performance and disciplinary problems, she felt sure he was ready to take his education seriously.

When Edgar Smith-Jones submitted his application for admission, the admission’s committee sent word to Dr. Morgan that Edgar’s credentials were so substandard that they could not approve his admission to Hilltop University.

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CASE STUDY – THE BARGAIN
Carol owns a small antique shop specializing in antique cameras. She sets aside time every day to check Ebay for items to add to her collection. With the recent addition of the “Buy it Now” option on Ebay, where sellers can list and sell an item at a set price, Carol has begun to check the site more than once a day, sometimes in the middle of the night, hoping to find bargains.

Very early one morning, Carol found an unbelievable bargain on Ebay. A seller listed a rare camera worth several thousand dollars with a “Buy it Now” price of $100. The description includes a note that the seller is a recent widow who is selling her late husband’s collection. It is obvious to Carol that the widow has no idea of the camera’s value.

CASE STUDY – PUSHING DRUGS
Renee is the Marketing VP for a pharmaceutical firm. She is pleased with the results of the latest TV ad campaign for their new prescription anti-depressant drug. Sales are up, indicating to her that their new drug is being prescribed more often than the competitor’s version.

While sitting in the waiting room at her doctor’s office, Renee flips through the latest edition of Science News Magazine. Her attention is caught by an article on drug advertising. The research cited in the article concludes that advertising prescription drugs directly to the consumer increases the likelihood that 1) patients will self-diagnose, particularly with regard to depression; and 2) that they will demand the advertised drug even if it is not necessary; and 3) that doctors will prescribe the drug requested based on the patient’s stated symptoms and requested treatment.

Further, the research suggests that this type of advertising is leading to consumers taking more medication than is actually needed, and, when covered by health insurance, taking expensive, new medication when effective medication at a much lower cost is available. The research also suggests that although the ads contain warnings of adverse side effects, the warnings are not given adequate weight and are often ignored.

Renee and her team are already reviewing the ad campaign for a new prescription sleep aid.

CASE STUDY – STOCK SALE
Jim is a well-respected, and very successful, business leader. Aside from running his large corporation and spending as much time as possible with his family, he enjoys buying and selling what some might consider ‘obscure’ stock. Although he usually doesn’t hold onto a stock for very long, he has kept one because it is a sentimental favorite. The company belongs to his college roommate, Donald. He has kept the stock even though it has been several months since they have spoken, and the stock has actually become quite valuable.

Recently, Jim was reviewing his stock holdings and decided that he had held onto his roommate’s company for too long. The stock had not moved since he bought it, and it was time to sell. Besides, the extra cash would be better spent on his new grandchild. Just as he picked up the phone to call his broker, Jim’s assistant announced that his college roommate was on hold. Donald told Jim that he was involved in a company scandal and wanted him to hear about it first hand rather than read it in the newspapers the next day. Jim made the call to his broker.