Glenda Good and Danny Rock Are Department Managers in the House

question 206

Essay

Glenda Good and Danny Rock are department managers in the house wares and shoe departments respectively for Litwins a large department store. Danny has observed Glenda taking inventory from her own department home apparently without paying for it. He hesitates confronting Glenda because he is due to be promoted and needs Glanda's recommendation. He also does not want to notify the company management directly because he doesn't want an ethics investigation on his record believing that it will give him a "goody-goody" image. This week Glenda tried on several pairs of expensive running shoes in his department before finding a pair that suited her. She did not however buy them. That very pair was missing this morning.
Litwins recently replaced its old periodic inventory system with a perpetual inventory system using scanners and bar codes. In addition the annual inventory is to be replaced by a monthly inventory conducted by an independent firm. On hearing the news of the changes Danny relaxes. "The system will catch Glenda now" he says to himself.
Required:
1. Is Danny's attitude justified? Why or why not?
2. What if any action should Danny take now?

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Definitions:

Best Practices

Best practices refer to the most efficient and effective methods of operating or performing tasks, identified through experience and research, which serve as benchmarks for businesses or organizations.

Planning Technique

A systematic method or approach used in preparing and executing plans or strategies to achieve desired objectives.

Household Savings

The portion of disposable income not spent on consumption of goods and services, often stored for future use or investment.

Firm Investment

The allocation of resources by a business towards assets, projects, or innovation intended to spur future growth or production.