Manual for Azerbaijan companies Rena Safaralieva


CASE STUDIES  FOR CHAPTER II. INTERNAL CORPORATE ETHICAL PROBLEMS



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 CASE STUDIES  FOR CHAPTER II. INTERNAL CORPORATE ETHICAL PROBLEMS  

 

Please read the cases below and chose your answer from the options provided. Please substantiate your 

answer. The notes to cases  can be found at the end of the book.  

 

1. You are in charge of a department of 6 people. You demand that your subordinates come to the office 

on time and you personally oversee when they arrive at work. One of your team members, a close relative 

of your company’s president, ignores you every time and is often late in reporting for work. However, 

this person always politely gives his apologies for being late.  

a)

 



What unethical moments do you see in this situation? 

(a)


 

What way out of this embarrassing situation would you suggest?  

(b)

 

Would you notify the president of your company of this entanglement?  



(c)

 

What negative consequences is this situation pregnant with from ethical point of view?  



 

2. You are manager of a small firm. A professional and diligent engineer, a young single woman, files a 

complaint against her boss. According to the woman, her department head has tried several times to take 

her out on a date with her and give her expensive gifts. She refused all his advances, but to no avail, as he 

did not stop. Their colleagues have noticed something and rumours are already circulating their 

department. Some people even believe that she is to share in the blame, because, according to them, she 

dresses provocatively and is made up. She asks for your help.  

a)

 



What unethical moments do you see in this situation?  

b)

 



What would you do as the head of this firm?  

 

3. You are owner of a small café. You have a vacancy for cashier position. This job requires such 

qualities as: experience in this field, honesty, ability to work late hours. You look at the list of finalists 

you have interviewed in the last week. All of them seem to qualify professionally, but have some 

problems on the non-work related aspects. Give arguments pro and contra for every candidate and make a 

final choice?  

 

a)

 



No. 1 is a nice looking woman of about 30. She has graduated from a junior college with major in 

accounting and used to work as cashier for a local bank which closed down. She seems honest, 

competent and reserved. She is a divorcee with a small child and has no relatives in Baku.  

b)

 



No. 2 is a young girl of about 20. She does not speak Azerbaijan language  well, which might be a 

problem. She completed accounting courses and has worked as cashier in a restaurant nearby. She 

would not tell you why she quit. She is pretty. You suppose she was harassed by her former boss.  

c)

 



No. 3 seems to be very competent. He used to be a chief accountant in a local public institution. He is 

about 40. You have known him all your life to be an honest and decent man. He is your best friend's 

brother.  

d)

 



No. 4 is a young man of about 25. He is a chief cashier at a big supermarket in the suburbs and wants 

to find a job closer to his home. He has good references, but he told you that he is a devout Moslem 

and he will need some space and breaks during his office hours to pray, which might be inconvenient.  

e)

 



No. 5 is a young girl of about 25. She used to be an accountant at a hotel. She is competent, but you 

think that her dress, make-up, and manner of speaking are too provocative. You are not sure if this 

will be useful for your business or bring problems.  

 

4. A human resources manager was assigned by his boss to collect information on employees, who will 

have to fill in questionnaires. However, the human resources manager is also to collect some of the 

information himself, using unofficial channels. The questionnaire has some questions on marital status, 

family members, relatives, scope of interests, friends, relationships and personal qualities of employees.  

 

How ethical is this assignment, as well as collection of information of this type through unofficial 



channels?  

 

5. A firm under a conventional name of Co sells medical supplies in Azerbaijan. Under a dealer 



agreement with a foreign pharmaceutical company, the Azerbaijan  firm shall sell exclusively products of 

their supplier. The Co firm sells through its agents, who have established close relations with some 




doctors, prescribing medications in medical institutions. The Co firm decided to give small presents and 

honoraria to these doctors, basing on the amount of prescriptions made, which, according to the firm, will 

assist them to form closer relations with doctors and increase the volume of their sales.  

(a)


 

What unethical moments do you see here?  

(b)

 

To what degree does the Co firm’s decision respond to ethical requirements?  



(c)

 

Can a direct payment of honoraria to doctors by suppliers be accepted?  



 

6. The company where I am employed, has recently announced a job vacancy. The company 

administration has authorized me to conduct interviews with applicants and make the relevant selection. 

My old friend turned out to be among applicants and he asked me to assist him in getting this job. In fact, 

my old friend has two children and his wife has recently died. I have interviewed all applicants and found 

that three of them, including my old friend, are the best match for the vacant position.  

a)

 

Shall I make a decision in favor of my old friend?  



b)

 

What is the best way out of this situation?  



 

7. You work full time for J-Consulting, an insurance company. Your friend has just quit a competing 

company because she is going to have a baby. Her boss is looking for someone to employ, but they need 

to fill in the gap immediately by hiring a part time consultant, until they find a suitable candidate. Your 

friend recommends you for the job. What shall you do:  

a)

 



Refuse altogether?  

b)

 



Request to keep the temporary arrangement confidential and work from home on week ends?  

c)

 



Notify your boss of the proposal?  

d)

 



Work from your current workplace in the evenings?  

e)

 



Anything else?  

 

 

Sanar Mammadov   



 

CHAPTER III. CUSTOMER RELATIONS 

 

 Tough competition forces businesses to apply enormous efforts to ensure that their goods and services 



fully comply with the requirements and wishes of their customers. Experts all over the world undertake 

behavioral studies to understand customer preferences for certain types of products. Despite all these 

efforts, there appears to be no single recipe to win customers over, as it impossible to predict human 

behavior with 100% accuracy. It has been proven however, that people are not indifferent to good service 

and fair treatment.  

 

Every customer has a right to choose the best quality product and service. It should be mentioned that 



before the 1960’s there were hardly any laws to protect rights of customers. Before the second half of the 

last century, customers were not entitled to raise legal claims against manufacturers that were producing 

poor quality products.  

 

The first legal document protecting the rights of customers was adopted in the U.S. under President J. 



Kennedy.

23

 This document from 1962, sets forth 4 main rights for customers: a right for safety



compliance, choice and information.  

 

These principles were subsequently expanded to form the basis for customers and manufacturer relations. 



In Azerbaijan, we have the “Union of Free Consumers”, which takes certain  steps in this direction.  

 

In April-May 2003, the “Union of Free Consumers” conducted an opinion poll



24

 aimed at finding out the 

degree of consumer satisfaction with the quality of water, gas and power supply, as well as the quality of 

the relevant services. The survey found that 47,8% of respondents were not satisfied with the quality of 

gas, 35,8 % were not satisfied with water quality and 29,8 % were dissatisfied with electric power. It is 

worth mentioning that only 5% stated that they had concluded contracts with the suppliers of the relevant 

                                                 

23

 L. K.Treviño, K.A.Nelson, Managing Business Ethics, 1999,  J.Wiley & Sons Inc. Publishing House,  p.81 



24

 The Role of Civil Society in Combat Against Natural Monopolies, Report, Baku, May 2003 





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