Ethics Scenario #93: National Association of Economics Professors and Researchers

93. Arnold is the executive director of the National Association of Economics Professors and Researchers, a national professional association representing scholars, mostly from educational institutions and government, who conduct research and teach in institutions of higher education about the American economic system. Arnold has just discovered that the trusted staff person who manages the organization’s annual conference has been embezzling checks intended to pay for conference exhibits, and has been charging the organization’s credit card for personal expenses. The amount of this theft is nearly $50,000. Arnold is very shocked by this news. He fires the employee and refuses to provide him with any severance pay or provide a letter of recommendation. Embarrassed that this occurred under his watch, Arnold decides not to let anyone know about this discovery--not the police, not his board, not any other staff members, and not even his wife. Eventually, it will all be forgotten, and Arnold will do a much better job investigating future job candidates who are put in a position of trust.

a. Is Arnold’s behavior ethical?