Carlos Santana had built up a successful development company. When he became city commissioner, everyone said it was good to have a businessperson on the commission. They said business people know how to control costs and make sound economic decisions, and Carlos could help the city tighten its belt.
One of his first projects was an analysis of the human resources department. He claimed that if the whole function was outsourced, it would save the taxpayers money. A year later, after painful layoffs and a bumpy transition, the new contractor, HR Associates, was in place. Two years later, HR Associates' billing rates had steadily increased, and there were complaints about service. After five years, the supposed savings had vanished, and Carlos had moved on to state government, his campaigns fueled by “generous” campaign contributions from companies like HR Associates.
1. Describe the conflict of interest in this case. Who benefited, and who did not?
2. When making business decisions of this sort, some factors are quantitative, and some are not. Discuss some of the non-quantitative factors related to this case.
ANSWER
As per the given question,
In the beginning, I believe that Carlos Santana and the citizens have the same interest which is to reduce cost . Later on, Carlos and citizens have conflict of interest ; Carlos was being self rational by doing things that benefit him.
On the other hand, the interest of citizens was to maintain low cost structure . Obviously, citizens had to suffer because Hr Associates increase over the years.
Non Quantitative Factor
That affects decisions like ... this includes ethical , moral and reasonable. These factors cannot be measured : however, when making business decisions of this sort, the decisions should be ethical , moral , and reasonable
THANK YOU FOR THE QUESTION....KINDLY RATE....IT HELPS ME A LOT
Carlos Santana had built up a successful development company. When he became city commissioner, everyone said...
Carlos Santana had built up a successful development company. When he became city commissioner, everyone said it was good to have a businessperson on the commission. They said business people know how to control costs and make sound economic decisions, and Carlos could help the city tighten its belt. One of his first projects was an analysis of the human resources department. He claimed that if the whole function was outsourced, it would save the taxpayers money. A year later,...
Thomas Perdue had built up a successful development company. When he became city commissioner, everyone said it was good to have a businessperson on the commission. They said businesspeople know how to control costs and make sound economic decisions, and Thomas could help the city tighten its belt. One of his first projects was an analysis of the human resources department. He claimed that if the whole function was outsourced, it would save the taxpayers money. A year later, after...