10. Case study

Browning’s Budget

Browning College is a private Midwestern liberal arts college with a national reputation for quality and innovation in curriculum and learning design. Recent rumors hint at serious emerging financial problems, in sharp contrast with the institution’s half-century of stable financial history.

Edward Saylor, Browning’s controller, has scheduled a news conference for noon today. His objective is to get the financial problem rumors stopped by providing the news media with the necessary data and information. Mr. Saylor’s aide, Albert Cauldron, discovers an interesting situation while preparing for the news conference: there are significant differences between the board-approved budget and the budget currently being used. In fact, the current budget includes approximately $500,000 in additional expenditures that do not appear in the budget formally approved by the governing board.

“I don’t want anyone else to get hold of this information, Albert,” directs Mr. Saylor. “Get a copy of our actual operating budget, and substitute it for the one attached to the board minutes giving approval. No one will know. The board members can’t remember details of the budget they approved. The public’s perception is more important than those details, and I’ve got to deal with a perception problem at that news conference today.”

Task:

1. Discuss the following ethical issues:

1)    Can Albert ethically follow Mr. Saylor’s directive to substitute the current budget for the board-approved budget?

2)    Does the public have a right to information about a private organization?

3)    Is perception more important than the facts in this situation?

4)    Can Mr. Saylor withhold or change data to protect the institution's good image?

2. Decide on actions to be taken in this situation.

11. Search for a podcast on your research subject (or, at least, on any subject related to your professional field), listen to the podcast, take notes and get prepared to deliver a small talk in class (a 5-minute lecture) using your notes. You may use the following website to complete the task: https://www.podbean.com/podcast-detail/3c8ve-3d34d/Macro+Voices ; https://www.mixcloud.com/somethingmorewithchrisboydshow/