Case Study Assignment – Business Ethics
Rejuv Travel INC, a sophisticated travel agency has had great success in the North American market by offering highly specialized travelling experiences to an elite feminine clientele. By means of its two star travel products, “Girl Power” and “Grey Lady, RTI has positioned itself as a highly profitable company through a strong word of mouth promotion that is currently attracting large numbers of new clients. Leading its success is CEO Joe Ryan, a very energetic and charming entrepreneur that has built the company from bottom towards a highly profitable IPO that has made both its shareholders and employees highly motivated. RTI is now seeking to open ...view middle of the document...
What has usually been regular business treated as an internal issue that would usually blow away regarding its CEO’s erratic lifestyle will not be able to dissolve by means of humorous office gossip and acceptance of being part of Ryan’s college quarterback personality. This time, global opinion leaders such as the Financial Times and Le Monde have identified a serious ethical gap in Rejuv that will not allow it to succeed by creating a social consensus that will reflect on the agency’s mixed signal and ultimately reject its products. Top executives and board members are now called to take action on whether they must affront its beloved CEO or to disregard public scrutiny.
2. Board Crisis, Incompatible Worldviews and Global Push.
Rejuv’s own leaders are now ad portas of facing a situation that will put its highest executives and board members to the test. As it is implied in the case, Roger Schelling and Derek Kramer, are now alarmingly aware of how delicate a situation RTI is at. Both together are responsible of keeping RTI’s investors close by and are quintessentially key players for the success of the agency’s overseas expansion. They feel the need to take action however they are facing a possible crisis. Joe Ryan is a highly admired and respected leading force within Rejuv. This turns the situation to a delicate stage due to the fact that the board of directors was basically hand picked by him. Here lies a new ethical dilemma on whether the board will be able to tackle the situation objectively for the agency’s interest or subjectively due to its strong relationship with its entrepreneurial CEO. Carol Friedkin a current board member and close friend of Roger Schellin has known Joe Ryan since the very beginning of the agency and is well aware of his character issues with women and how these may affect the agency’s image. She must now face this issue whereas in the past she would conclude that there was no moral intensity with Ryan’s behavior therefore any need to take action. This shows that members of the board might not be ready to tackle such situation both in terms of preparation and proximity to Ryan.
Nevertheless, the board also faces having to deal with a successful formula with its leader whose personality and worldview now will clash to what the agency needs.
Ryan is confusing his own values versus what the agencies values need to be. He is a representation of the entrepreneurial worldview, where he considered himself a success because of the agency indisputable successful financial situation and wherever he faced a possible scandal he quickly reacted and moved on. Ryan’s libertarian attitude in conducting the agency has deprived him of being the team leader RTI needs right now, and not just an individual leader.
On the other hand, Carol Friedkin, not long ago faced Ryan when asking him about the situation involving Donna Olden’s fast tracking from being Ryan’s secretary to VP of communications. Carol represents a...