GLADYS AND THE NARCISSISTIC KNIGHT
Chapter 1 - The Proposal
The dorm room was still and quiet. On a desk next to a laptop computer, textbooks sat stacked, spines neatly aligned. Sunlight streamed through a break in the curtains, moved across the bed, and bathed the figure of a sleeping young woman. When the golden light touched her face, Gladys Perkins' eyes popped open. She yawned, stretched, and tried to remember why she felt so excited.
She grinned. "Of course. Today's the day!" She jumped out of bed and stood in front of the full-length mirror that hung on the opposite wall. She turned her head left, then right, and peered closer at her face. "I don't look any different." But I am. Today is my official début as Secretary/Treasurer for the Accounting Honorary Society. Wow. President of the IMA Student Group and now an officer in AHS. Student extraordinaire. I impress myself. Gladys spun around and went into the bathroom to get ready for school.
A few hours later, Gladys sat in a large room packed with other students. She scanned the AHS meeting agenda, which included the names of the new officers for the academic year next to their respective titles. David Knight, President, Lauren Smith, Vice President, Larry Washington, Activity/Service Director and me, Secretary/Treasurer. She grinned when she saw her name. Gladys knew the other officers from her accounting classes, and Larry was also Vice President of the IMA Student Group.
She watched as David and Lauren moved to the front of the room. Stop daydreaming the meeting is starting.
David said, "Good afternoon everyone. I would like to call to order, the first meeting of the academic year for AHS. I am excited to kick off a new year as president of this fine organization. As you are probably aware, I was instrumental in helping us attain Outstanding Chapter status last year. I intend to surpass past successes and make this year a truly exceptional year. I look forward to working with you all. Let's get started."
The room erupted in applause. David beamed at his audience, bowed in acknowledgment, and took his seat. "Please refer to the meeting agenda. We have a great deal to discuss."
The new president moved through the agenda items with ease and efficiency. He smiled often and exchanged humorous remarks with student members. Gladys was struck by his bearing and charisma. He is so confident and eloquent. And he has a vision for AHS. I think he will be an excellent leader.
David leaned forward to emphasize his next point. "Now we come to the Ethics Awareness Program Development Grant. If you read through the materials I distributed, you realize this is a fantastic opportunity. It is a national competition sponsored by the Institute of Management Accountants. Only four teams will receive funding. If we win a grant and implement our program with success, the kudos will be a huge feather in my cap. And, of course, it will look great for all of you as well." David looked at Lauren and motioned for her to take over.
Lauren stood and said, "What we need to do today is brainstorm. We must put together a sound proposal-"
David raised his finger and interrupted, "An ambitious proposal. Something that will stand out and get the grant committee's attention."
Lauren nodded and amended her statement, "We need to put together an impressive proposal and a corresponding budget. What we need are ideas. Suggestions for awareness events. Also, scheduling, venues, and implementation. Once we agree, it will be up to our secretary/treasurer to put together the proposal for submission."
Gladys sat straight in her chair and tried to appear confident. Her stomach fluttered, and she bit her lip. This is it. My first big responsibility in my new role. She put her hands together and looked up at the ceiling. Please, please don't let me screw this up!
After the general meeting, the officers sat around a small table and reviewed the ideas for the proposal.
Larry said, "Wow. The meeting was really productive. We have a dozen good ideas for ethics awareness events. But we can't include them all. We need to prioritize and select only the best for inclusion."
Lauren nodded. "I agree. Let's rank them starting with the best first."
Gladys decided it was time for her to speak up. "Why don't we go down the list, discuss each idea for a minute or two, and select the top ideas. I'll keep notes."
She recorded the comments as the team worked through the proposed ideas. When the discussion was over, Gladys checked her notes. Six events were ranked in the top category. She looked at the group and said, "There are still too many potential events on the list. We have more cutting to do."
David stood, stretched, and smiled at the others. "No, we have six excellent ideas. Put them all in the proposal."
Lauren frowned. "David, you can't be serious. Don't forget. We have to implement this program. That's way too many events to organize and schedule. We need to plan for three at most."
Larry said, "I agree. It will take a lot of time to put together a campaign to promote each ethics awareness activity to make sure we meet attendance goals. And don't forget. Publicity will pall after the first two or three events. People will lose interest."
Lauren looked at David and said, "Maybe we could propose four?"
Gladys cleared her throat. "I agree with Larry and Lauren. I think it would be better to include fewer events and do a fantastic job implementing them."
With a dismissive glance at Gladys, David turned to the rest of the group. "Look, we have to land a grant first. And the only way we can do so is to submit an ambitious program of events and a well-justified budget to match. We need to put all the good ideas in the plan."
Larry shook his head, "Six is just too many. If we fail to pull it off, it will make us look bad."
David leaned forward, and placed his hands on the table, "Oh, come on guys. We can do this!"
No one spoke for a few moments. Finally, Larry said, "Well I suppose..."
Lauren pressed her lips together and looked thoughtful, "I think we should propose four. Larry? Gladys?"
Larry gave the thumbs up. Gladys nodded and said, "I will do my best to put together a good proposal."
David nodded. "I am sure Gladys will make us proud."
After the others left the room, David approached Gladys, put his hand on her shoulder, and said, "Put all the top events into the proposal. Then pad the budget to make sure we have more than sufficient funds to carry off the plan in stellar fashion."
"But David ..."
He looked directly into her eyes, "Look. We are a small school up against extremely stiff competition. Our organization needs this award. You know as well as I do we have to submit an impressive proposal to win a grant. A little ambitious padding is expected. It is the way the game is played. The grant committee will take it into account." He offered her a charming smile, then took her hand and gave it a brief squeeze. "Don't let me down."
Gladys watched him go with a sinking feeling in her stomach.
Chapter 2 - The Program
Gladys entered the meeting room and rushed to her seat. David Knight stood behind a podium in front of a classroom filled with student members and faculty. "Fantastic news! Thanks to Gladys Perkins' draft, and a little editing on my part..." He paused, flashed a brief grin, and then punched the air with his fist. "We won. We received an Ethics Awareness Program Development grant." His audience clapped with enthusiasm.
Dr. Mary Jacobs, the faculty adviser for AHS, said, "Congratulations. Your proposal was well done, albeit quite ambitious. You have a massive amount of work to do to implement your ideas. I will be available to offer assistance when needed. My door is always open."
Lauren and Larry looked at Gladys and frowned. They look perturbed. What's going on? Concerned, she leafed through the package David distributed. It contained the letter from the grant committee and a copy of the final proposal. She gasped. This is not the proposal I prepared. The plan proposed six ethics awareness events instead of the four to which the group had agreed. The projected budget was substantially higher than what she had estimated. Her stomach lurched, and her mind buzzed. I don't understand. She stared at David in disbelief.
He winked at Professor Jacobs and said, "Thank you, Mary. I welcome your contributions as always."
Lauren turned and added, "Thank you, Dr. Jacobs, we appreciate any help you can offer."
Brow furrowed, Larry glanced at Gladys. With a weak smile, he said, "Yeah, we can use all the help we can get."
The meeting ended, and as the student members filed out, Gladys sat without moving, posture stiff, a dazed expression on her face. Lauren and Larry approached and looked down at her. Larry said, "I thought we agreed on four events. Why did you include all six?"
Still shocked, Gladys stammered. "But...but I didn't. I..." With a look of disapproval, Lauren turned and walked away. Larry shook his head and followed.
Gladys confronted David after the others left. "You changed the proposal. You put in all six events after the group agreed to four. And you padded the budget numbers. Lauren and Larry were obviously upset. They think I went against the group."
With a voice full of pity, David said, "I edited my proposal and won a grant for AHS. The plan you prepared was uninspiring. It would have been rejected. What's the problem? I made us look good. I made you look good."
Gladys shook her head, "David, we will never be able to carry out this plan successfully. It will take too much work to do a quality job. Can we submit a revised version?"
David snorted. "Are you kidding? They will revoke the grant and give it to someone else. No, we will implement my plan as proposed." He touched her arm and gave her a sympathetic smile. "It's going to be wonderful. I have every confidence the program will succeed. You, Lauren, and Larry need to get started right away."
He walked across the room towards the door, paused and winked at Gladys over his shoulder. "Don't let me down, kiddo."
Six months later, the four AHS officers sat around a table in a small conference space. Gladys distributed a handout to the other officers. She sighed and said, "As you can see, our ethics awareness program was not as successful as we hoped. In summary, three events went quite well and actually exceeded attendance expectations. Unfortunately, one event had to be canceled. The other two were implemented, but resulted in low attendance and poor feedback."
David frowned at Gladys, "I put together a fantastic plan. What happened? What did you do wrong?"
Lauren looked up from the report and spoke out in Gladys' defense, "This isn't her fault. You revised the proposal. The plan was too ambitious. It's that simple."
David turned and glared at Lauren.
In a placating tone, Larry said, "We had difficulties scheduling speakers, reserving good venues, and promoting the program. We got behind, and four of the six events ended up scheduled during the spring semester. There were a number of competing activities that cannibalized our attendance, and interest always wanes towards the end of the academic year."
No one spoke for a few moments. Gladys said, "I am afraid I have more bad news. In addition to the canceled event and attendance issues, we didn't spend the funds as indicated in the proposal. We'll have to explain that in our final report as well."
Lauren nodded, "We need to carefully report our successes and failures. Explain what went wrong and why it went wrong."
With an abrupt gesture, David dismissed Lauren's comment. "That will make us look incompetent. We need to put together a report that highlights the program's successes and camouflages the program's failures. What we need is a positive picture that portrays what happened as a ..." David paused and raised his hands and formed quotation marks with his fingers, "...'highly constructive learning experience'."
Larry frowned, "But I don't think-"
"Are you suggesting we inflate our performance?" asked Gladys.
David said, "No, of course not. I am suggesting that we use careful direction and language to construct a positive report and avoid damaging the reputation of AHS. This chapter attained Outstanding Chapter status last year, and I have no intention of allowing this issue to mar my achievement."
In a muted voice, Gladys said, "I am not sure I am comfortable ..."
David glanced at Gladys with a condescending smirk and slight shake of his head, "Don't be so naïve, Gladys. This is the way business operates. We will not be falsifying performance results. We will report what happened. With a positive spin. It's called rhetoric. All businesses use rhetoric to polish up their annual reports. You'll learn." He spread his hands wide in an affected gesture, "Think of it as marketing."
Gladys glanced at the other two members of the team. Lauren lowered her eyes and looked at her lap. Larry shrugged.
David turned to Gladys, "Good. I will expect a favorable report by the end of the week."
Chapter 3 - The Report
Two weeks after Gladys submitted her report to David, she accessed her email. Included with several other messages was one from the IMA directed to David Knight with copies to her, Lauren, and Larry. Gladys held her breath, looked up at the heavens and crossed her fingers, and opened the message. She read the body of the email aloud to herself, "Thank you for a most thorough and professional report on your Ethics Awareness Program Development efforts. On behalf of the IMA, we would like to congratulate the AHS on the unqualified success of the implemented program. We look forward to announcing your group's impressive accomplishment at the upcoming IMA Annual Conference and Expo."
Gladys sat erect in her chair and stared at the computer screen. She reread the email, "Unqualified success? Impressive accomplishment?" I don't understand. Did they read my report? She stared into space for a moment then closed her eyes. Oh, he didn't ...
Heart pounding, she logged on to the AHS website, accessed the proper folder, and downloaded the published document. As she read, a knot formed in her stomach and her panic grew. The eloquent verbiage boasted the successful implementation of six events. This is not my report. David submitted his version under my name. Gladys rubbed the back of her neck and continued to read. The three events that had gone well were accurately reported, but attendance results and participant feedback for the other two events had been inflated considerably. And the cancelled event did not appear on the report. It had been replaced by a function that had been hosted by the Center for Ethics. AHS members attended, yes, but we didn't host that event. Oh, no. David took credit for an event we didn't even host.
Gladys put her head in her hands. This is unbelievable. I can't be a party to this. What should I do? If I report this to the IMA...? Oh, my God... my name is on the report! What am I going to do?
DISCUSSION QUESTIONS
1. IMA members (including student members) are bound by the IMA Statement of Ethical Professional Practice (IMA SEPP). Consider the progression of the ethical situation described in the case. Reflect on the issues with which Gladys' is confronted in light of the IMA SEPP and respond to the following:
a. Identify the first ethical issue with which Gladys is confronted. Explain the ethical dilemma and the stakeholders impacted by the issue.
b. Identify the IMA SEPP principles/standards that apply to Gladys' situation. Discuss Gladys' actions relative to the identified principles/standards.
c. What are Gladys' responsibilities as a member of the IMA? Discuss Gladys' options as the situation evolves. Explain the risks of such options.
d. David's "ambitious" plan evolved into an inflated report that put Gladys in a difficult position. If Gladys fails to act in response to the report, will she be in violation of the IMA SEPP? Explain.
e. If Gladys fails to act and the issue is discovered, will she be held responsible even though David changed her report? Explain.
f. Use the IMA SEPP to advocate a proper course of action for Gladys. Write an ending to the case that clearly portrays the advocated course of action, risks involved, and ultimate impacts on stakeholders (include actions, dialogue, and/or internal thoughts as appropriate). Justify your advocated course of action by reference to the IMA SEPP.
2. David exhibits both traits of a charismatic leader and traits of a narcissist. Identify his most notable attributes and discuss the pros and cons of such traits in a business leader. How do you think Davis' personality impacted Gladys throughout the case? Do you believe Gladys is naïve as David claims?
3. Envision yourself in a similar real-world business scenario. Discuss appropriate ways to deal with a narcissistic leader such as David in a constructive manner consistent with professional standards. How might such actions mitigate the risk of ending up in a situation similar to the one Gladys faced?