Reference no: EM131692726

Pauline was hired as the head of the Payroll Department at Wonderful Service Company, a firm of 75 employees. She was hired by Steve, the General Manager of the company, who informed her of the need to maintain strict confidentiality regarding employee salaries. He also told her that he fired the previous Payroll Department head for breaking that confidentiality. She was formally introduced to Dave, the owner, who told her to see him if she had any questions or problems. Both Dave and Steve made her feel welcome.

After three months, Pauline began to wonder why Greg makes so much more in commissions than the other service technicians. When she first met Greg, he was introduced to her as Steve's younger brother. She assumes that he must be highly qualified and works rapidly. She based this opinion on a conversion she overheard when Dave, the owner, was commending Greg on his performance. She also noticed that Dave, Steve and Greg often had lunch together.

One day, Steve gives Pauline a stack of work tickets for the service technicians for the coming week. The technicians are to take whatever ticket is on top when they finish the job they are presently working on. After putting the tickets where they belong, Pauline remembers she has a doctor's appointment and returns to Steve's office to tell him about it. As she enters, she sees Steve give Greg a separate stack of work tickets. As she stands there, Steve tells her if she mentions this to anyone, he will fire her. Pauline becomes upset because she now believes that Steve is giving the easier, higher commission work to Greg. Since it has been only three months, Pauline is still on probation and knows that Steve has the authority to fire her. She ponders what she should do if anything.

Requirements:

1. What are the ethical and/or legal issues that are facing Pauline?

2. What would you do if you were Pauline?