Problem: Legal and Ethical Considerations for Business
Consider the following situation. Melanie is a junior financial manager in a multinational corporation. After she was sexually harassed by a top-level executive, she decides to sue the company. During settlement discussions, Melanie is offered an extremely large financial settlement. However, in the proposed agreement, Melanie is required to confirm that the executive did nothing wrong, and after the agreement is signed, she is prohibited from discussing anything about the incident publicly. Before the date scheduled to sign the settlement agreement, Melanie's colleague mentions that she has heard the executive has done this before, and the settlement amount is very large because the company probably had a legal obligation to dismiss the executive previously. Melanie understands that the company prefers to keep the executive because he is a big moneymaker for the company. If he is dismissed, the company will lose a significant part of its revenues.
In your opinion, what choice should Melanie make? USING YOUR OWN WORDS, consider the following as part of your response:
A. Is it ethical that the company allows the executive to continue working because of the revenue he generates, given his propensity to harm co-workers?
B. Is it ethical that the company requires Melanie to state that the executive did nothing wrong as part of the settlement agreement?
C. Should Melanie agree to this settlement and prioritize justice for herself over potential harm to future employees?