Jose Alvarez Hernandez

MGMT 300
Professor Kukalis

Case Analysis: Empress Luxury Lines

1. When determining what his obligations are to his subordinate, Kevin
Pfeiffer, what decision would Antonio Melendez most likely reach if he applied
the utilitarian approach to decision making? What conclusions would
probably result if he employed the individualism approach?
If Antonio Melendez applied the utilitarian approach he would decide to produce the
greatest good for the greatest number of people by reporting Kevins supervisor, Phil Bailey.
Antonio is responsible for Kevin Pfeiffer and Antonio himself congratulated Kevin for not
adhering to Phil Baileys request of falsifying information that could affect the outcome of the
reported loss of equipment. By whistle-blowing about the unethical practices of Empress Luxury
Lines, the insurance company will be able to investigate about the advice Phil Bailey is giving to
his employees. Antonio Melendez would do Empress Luxury Lines employees a big service if
he would come out and speak out for them. The case study talks about how there is no
accountability by upper management to correct unethical practices and also talks about the
discipline employees who are caught whistle-blowing may endure. Antonio should acknowledge
that he is working for a corporation that is committing illegal actions that may affect his career if
he doesnt make the correct decision. Kevin Pfeiffer did the correct decision by refusing to
follow Phil Baileys orders and by going to Antonio Melendez for guidance. The decision is
ultimately up to Antonio, who understands his decision may have a negative impact on his career
as well as others careers.
If Antonio would apply the individualism approach he would recognize that its best for
everyones individual interest to forget about the problem and kick the problem under the rug.
The individualism approach focuses on the individuals best long-term goals and by causing a
problem, Antonio could put his career and Kevin Pfeiffers career in jeopardy. Antonio could

Jose Alvarez Hernandez

MGMT 300
Professor Kukalis
decide to continue working for the company while promoting ethical concepts and actions. By
making his decision using the individualism approach, Antonio will look out for himself and for
those subordinates he oversees. The individualism approach will also promote ethical behaviors
inside Empress Luxury Lines because people like Antonio are making an effort to do what is
correct.

2. Put yourself in Antonios position and decide realistically what you would
do. Is your response at a pre-conventional, conventional, or post-conventional
level of moral development? How do you feel about your response?
If I were Antonio Melendez I would not want to work in an organization were upper
management and lower-level employees are okay with unethical practices. I would rather work
for an organization were making the right choice is encouraged and rewarded. My decision
would be to let the insurance company know about the lies and deceptions going on at Empress
Luxury Lines. I would also inform them about individuals, like Phil Bailey, who are committing
frauds. I believe that my response is at post-conventional level of moral development. I say this
because I follow self-chosen principles of justice and morals. I believe myself to be a person of
high character and somebody who upholds moral law. I would not hesitate to be the whistleblower because I cannot stand people who are dishonest, especially in a professional
environment. I feel that my response would be the correct decision because in this particular
situation the fraud being committed is stealing. Kevin Pfeiffer made the right choice by refusing
to engage in illegal practices. I would congratulate Kevin, and use him as a witness for any court
issues that may arise. The financial crisis of 2008 happened because people like Phil Bailey
were allowing fraud and were being irresponsible in their decision-making. An organizations
culture is arguably the most important part of an organization, but if individuals with power are
allowing situations like this to happen, that organization is not going to succeed.

Jose Alvarez Hernandez

MGMT 300
Professor Kukalis

3. If Antonio or Kevin were fired because they reported Empresss fraud,

would they be justified in removing all traces of their employment at the
cruise line from their resumes so they dont have to explain to a prospective
employer why they were fired? Why or why not?
Personally, I dont believe that they should remove traces of their employment with
Empress Luxury Lines. They shouldnt not be embarrassed at the courageous decision they took
to uncover a fraud operation that was happening in the company for years. Employers who do
not value morally upright employees, are employers that dont deserve these employees in the
first place. Antonio and Kevin should be proud of what theyve done, but they would be justified
to erase traces of their employment with Empress Luxury Lines. Its their decision and they have
the choice of omitting that type information if they dont feel comfortable sharing it with a
potential employer. A resume is a personal document that is tailored to the candidates
preference, so it shouldnt matter if they decide to not include that information on their resume or
application. The only advice I would give Kevin and Antonio is to not falsify information on
their resumes or applications. Many employers stress the importance of being honest from the
very beginning of the recruitment/hiring process. Lying on an application can have negative
consequences later in their careers. If I were an employer I would not hold them accountable for
unethical actions that were taking place in their last place of employment. Their actions shed
light on a scheme that involved millions of dollars being stolen. People like that are valuable for
any organization in any industry.