Ethics: Lucia Kraus and Trent Lee are department managers in the housewares and shoe departments, respectively, for Hillards, a large department store. Trent has observed Lucia taking inventory from her own department home, apparently without paying for it. He hesitates confronting Lucia because he is due to be promoted, and needs Lucia'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, Lucia 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.
Hillards 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, Trent relaxes. 'The system will catch Lucia now,' he says to himself.
Required:
1. Is Trent's attitude justified? Why or why not?
2. What, if any, action should Trent take now?

Question

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The Answer of Ethics: Lucia Kraus and Trent Lee are department managers in the housewares and shoe departments, respectively, for Hillards, a large department store. Trent has observed Lucia taking inventory from her own department home, apparently without paying for it. He hesitates confronting Lucia because he is due to be promoted, and needs Lucia'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, Lucia 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.
Hillards 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, Trent relaxes. 'The system will catch Lucia now,' he says to himself.
Required:
1. Is Trent's attitude justified? Why or why not?
2. What, if any, action should Trent take now?

Ethics: Lucia Kraus and Trent Lee Are Department Managers in the Housewares