Ethics Scenario #13: Outlidge Nursing Home

13. Steve is the CFO for the Outlidge Nursing Home, a nonprofit long term care facility. Recently, the executive director, Harold, has discovered by accident that Steve never received his MBA from Cornell, as he had claimed on the résumé he had submitted when he first applied for the position five years ago. In fact, he didn’t have an MBA at all. The job opening notice for the position clearly stated that an MBA was a prerequisite for qualifying for an interview. Harold has to admit that Steve has done an exemplary job guiding the financial management of the home, and certainly demonstrated sophistication in dealing with the financial affairs of the organization, and was well-liked and respected by his colleagues. Harold discusses this issue with his board chair, and the board chair tells Harold that he should do what he thinks is appropriate. Harold decides to fire Steve effective immediately, who with three kids and a large mortgage, would clearly be devastated by this decision.

a. Is Harold acting ethically by summarily firing Steve for exaggerating on his résumé?

b. Is there any discipline short of firing that might be appropriate for Steve’s transgression?