Description: Apparently it was cheaper for the organization running the rink where the Edmonton Oilers play hockey to fire all the parking lot cashiers rather than track down which cashiers had been stealing parking fees. Investigations this past summer caused management at Northlands to conclude that they were losing about 20% of the possible revenue from parking fees. They estimated that specifically identifying the offenders would take four months and cost $400,000, so instead all the attendants were let go. Some of these ex-employees are considering lawsuits.
Date: October 9, 2015
1) What is your opinion to the action taken by management to stomp out improper activity?
2) If you were responsible for cash handling at Northlands, what controls might you implement to prevent or detect these cash irregularities?
3) What are some of the key ethical issues that emerge from this story?