MDN Inc. is considering two employees for the job of senior manager. An internal candidate, Julie, has been with MDN for 12 years and received very good performance evaluations. The other candidate, Raoul, works for a competitor, and has valuable experience in the product market into which MDN wishes to expand. Do you think MDN has an obligation to hire Julie? Why or why not?
Sample Answer
This is a classic ethical dilemma that touches upon principles of loyalty, fairness, and maximizing organizational benefit. While MDN Inc. does not have an absolute, legally binding obligation to hire Julie, they do have a moral or ethical obligation to consider her fairly and to weigh the implications of their decision on employee morale and retention.
Here's a breakdown of why:
Arguments against an absolute obligation to hire Julie:
- Fiduciary Duty to the Company: MDN Inc.'s primary obligation is to its shareholders and the long-term success of the company. Hiring the best candidate for a strategic role, especially one aimed at market expansion, directly contributes to this. If Raoul's unique experience is genuinely critical for this expansion, then hiring him might be the most responsible business decision.
- Strategic Needs Outweigh Loyalty in Some Cases: While loyalty is valuable, a company must adapt to market changes. If Julie, despite her good performance in her current role, lacks the specific, cutting-edge experience needed for a new product market, then promoting her might not serve the company's strategic growth effectively.
- Meritocracy and Best Fit: The goal of hiring should be to find the candidate who is the best fit for the role, possesses the necessary skills, and can deliver the desired results. If Raoul demonstrably brings more relevant experience for the senior manager position in the new product market, then he might be the more meritorious choice for that specific roleThis is a classic ethical dilemma that touches upon principles of loyalty, fairness, and maximizing organizational benefit. While MDN Inc. does not have an absolute, legally binding obligation to hire Julie, they do have a moral or ethical obligation to consider her fairly and to weigh the implications of their decision on employee morale and retention.