For the illustrated case study...I need a proposed solution.
I need an idea to build on. If I could get help with a proposed solution. I'm looking for around 400 words, that would provide a good foundation to grow on.
VIDEOTEK CORPORATION:
Jeremy Campbell is the chief executive officer and chairman of a relatively young, publicly held Boston high-tech company we'll call VideoTek (for video technology). VideoTek was founded in 1980 by Earl Mantz, who created a device that could convert black and white computer monitors into color monitors, which he sold for $85.
The company started with two people and grew quickly to a core of 35 people who respected Mantz as a visionary. Some in the founding group described him as a "deep-thinking, spiritual type of person, with high ethical standards." The company culture evolved naturally out of his style. It was a hard work/high trust culture. Good people were hired and trusted to work hard and well for the company, and they did. It was common for people to work 60 to 80 hours a week for VideoTek. They believed in what they were doing and they believed in their product.
The company grew explosively to 1,500 employees and over $200 million in sales in 1994. In 1989, when the company had achieved approximately $40 million in sales, it went public. A professional manager, Campbell, was recruited from a large company to bring operational sanity to this small company that was growing out of control. He was named president and CEO.
Mantz, now a multimillionaire, happily became a member of the board.
Campbell brought in his own team--big company types—to manage the company. However, he recognized the value of Videotek's culture, and he vowed to perpetuate it. Management today still prides itself on the company's flat organizational structure (e.g., few layers of management) and efficient, open communication via the company's e-mail system originally set up by Earl. Just about everything that needs to be communicated within the company is communicated by e-mail. Employees who are on the road keep in touch via their laptops. In support of communication openness, a unique feature of the system allows messages to be sent anonymously.
But all is not rosy at VideoTek. Not long after Jeremy's arrival, long-time employees began to question top management's commitment to all aspects of the culture. They felt that he especially liked the "hard work" part, but what happened to "high trust"? Something was amiss. Jeremy seemed to be big on words but short on follow-through. He was doing some things that seemed highly questionable and supporting the questionable conduct of his friends. The key question seemed to be, "Could this top management team be trusted?"
Finally, the company has been experiencing a slowdown in growth. It needs new products to sustain its growth, but so far new products introduced under Jeremy's leadership have had disappointing results.
Following are two ethics-related e-mail messages. The first is a message sent to all employees by Jeremy Campbell in response to an incident of unethical behavior that the grapevine was buzzing about. The second communication is an electronic mail message also sent to all employees a month later by an anonymous employee.
E-Mail Communication From the Chairman and CEO:
From: JeremyCam@VTK 1-MAR-1999
To: All Staff
Subj: Ethical Conduct. Actions, Not Words.
The VideoTek Philosophy is a blueprint for action, a template for daily life at VideoTek. The second we forget that, we are vulnerable to internal challenges that threaten the very foundation of our continued success. One precept of the VideoTek Philosophy must not be compromised under any circumstances: We live and work ethically. It is imperative to remind ourselves of certain key values which support this commitment:
The goal of any business is to make a sound profit. Our dedication to quality will help us realize that goal. We do not compromise our integrity in the name of profits.
VideoTek is changing the way people do business. Because we truly have an impact on people's lives, we must set a positive example of leadership and credibility in all things we do.
We are honest and fair in all transactions with our customers, suppliers, shareholders, and each other.
As specific challenges to these values have arisen, we have addressed them swiftly and decisively. In order to maintain focus on ethical behavior throughout the organization, I have formed a task force consisting of Joe Donaldson, Bill Sykes, Alan Golden, and Joyce Eldridge. This group will examine the following issues in depth and provide me with specific recommendations for corrective action:
• Relationships between VideoTek employees and customers and suppliers
• Outside business activities of VideoTek employees
• Protection of company assets and intellectual property rights
Beyond your own conduct, you have an obligation to report circumstances which you believe to be in conflict with VideoTek's ethical standards. Our ethics committee--composed of Joe Donaldson, Leslie Bolton, Alan Golden, and Joyce Eldridge--has been established to hear these reports and recommend the appropriate response.
VideoTek has been successful because of our ethics, not in spite of them. Only by remaining true to ourselves--resolute in our beliefs and consistent in our actions--will we continue to fulfill our mission. This requires both courage and wisdom, the very same qualities that have made us the company that we are today.
Jeremy
E-Mail Communication from Anonymous Employee
From: SECRET@VTK 1-APR-1999
To: All Staff
Subj: Preliminary Report from VideoTek Ethics Committee
The VideoTek ethics committee, consisting of Joe Donaldson, Leslie Bolton, Alan Golden, and Joyce Eldridge, has been meeting to ensure that all VideoTek employees act in the most ethical possible manner. We must all remember the timeless words of our president Jeremy Campbell: "One precept of the VideoTek Philosophy must not be compromised under any circumstances: We live and work ethically."
In light of this, we have prepared the 1992 Spearshaft of Ethics awards for cases of outstanding ethical behavior within VideoTek.
For instance, the ethics committee has received nominations from a few employees for one particular director of VideoTek who is also a major stockholder in one of VideoTek's customers, and whose son, a former employee of VideoTek, is also involved with this customer. Moreover, according to these employees, VideoTek has spent large sums of money and plans to spend even more to develop products for this customer, despite the fact that they have not lived up to the terms of their initial agreement with VideoTek. However, to avoid the slightest tiniest hint of a conflict of interest, the director in question stepped out of the meeting when the board of directors voted to approve the deal. Well, he didn't actually step out of the room, but he didn't vote on it, and that qualifies him for the Golden Spearshaft of Ethics. Even if VideoTek eventually loses money on the deal, we can still be proud to have lived by the highest of ethical standards.
From another employee who even read the annual report, we learned that the eight-person board of directors voted in 1992 to give all seven of the non-employee directors stock options. We think that it was very important that the directors get these stock options. The directors do not have nearly enough money. In fact, some of them are practically living on the brink of poverty, or at any rate on the brink of being merely well off.
For the eight of them to generously give the seven of themselves these options was the least they could do. After all, the options are only worth $850,000 among them. Because of this generous and self-sacrificingmove we are awarding the entire board of directors the Silver Spearshaft of Ethics.
Don't believe the rumor that top management has been inconsistent in ethical word and deed. The malcontents who are spreading this rumor are woefully misinformed about a recent incident. As everyone knows, Amy Masterson has been one of our finest sales representatives for several years. However, her commitment to the firm recently came into question when she steadfastly refused to release customer confidential information, even when encouraged to do so by some highly placed VideoTek managers, and even when releasing the information would have clearly contributed to VideoTek's bottom line. Nor would Amy accept the $150,000 top management offered her to go quietly. The entire top management team has been awarded a Bronze Spearshaft of Ethics for their unending support of unquestioning loyalty to the firm. (By the way, donations to help Amy defray her legal expenses on her unjust discharge lawsuit may be sent directly to her home.)
Sadly, it has also come to our attention that some employees have said that our Human Resources Policies do not live up to VideoTek's ethical philosophy. Nothing could be further from the truth. The Human Resources Policies have been reviewed and considered as broadly as possible within the company. For instance, the company policy on nepotism was carefully evaluated by both Jim and Dana Swift. The company policy on termination of employees was scrutinized by a tremendous number of VideoTek employees within the BW and TC Divisions [two new product divisions that have been shut down, resulting in millions of dollars in losses and hundreds of layoffs]. The ethics committee will also be inviting the employees who made the Spearshaft of Ethics nominations to personally review the termination policy, as soon as we can learn their names. Finally, VideoTek's policy on fair compensation was exhaustively studied by Jeremy himself, with the assistance of Business Week magazine, and he said he is fully satisfied that VideoTek is paying fair compensation.
There are so many outstanding feats of ethical behavior within this company that we are sorry we can honor only an outstanding few. We hope that this will inspire everyone within the company to try harder in the coming year to live up to VideoTek's high ethical standards.
Lastly, we offer a few words from Jeremy himself: "I am personally chagrined that anyone could have any perception that any VideoTek employee would do anything unethical. Whoever you are, you had better just change your perception, Buster!" Joe Donaldson, Leslie Bolton, Alan Golden, and Joyce Eldridge--NOT!
April Fools!