Moral Dilemma

I have a situation that I'm not quite sure how to handle...

We have a problem EE, who also happens to be our Controller. The problems with him are both big and small: he takes too long lunch breaks, he is lazy, he pawns his work off on others, he shows a total lack of respect for the president of the company and he doesn't have much regard for confidentiality (the last one being one of the biggest). He has a nasty habit of being very vocal regarding the financial status of the company to whoever will listen, more often than not the Accounting Asst. He has been warned that another incident of his lack of confidentiality will result in his termination.

You may be wondering WHY he is still working for us...well he is 61 years old and NOTHING has been documented regarding his performance. He has also made statements to other EEs that getting rid of him will be very expensive to the company.

Anyway, this morning I overheard him discussing (or actually complaining about) several financial issues with the Accounting Asst. (none of which she has any business having the information about) and complaining to her about the financial staus of the company.

As the HR Manager I know that I have a responsibility to report this behavior but I'm not sure how much the Accounting Asst. will back up what I say (she has been very reluctant to disclose anything to anyone as she knows that if she does, this person will be terminated).

Would you just provide one final warning to the EE regarding his behavior or would you go straight to the top and let the chips fall where they may?

Comments

  • 13 Comments sorted by Votes Date Added
  • I think that one time a financial director breaks confidentiality it one time too many. That position needs to be held to a higher standard due to the sensitive material that he has access to.
  • Gone in 61 seconds. Will it cost you? Sure it will. How much? Well, how much will it take for him to duly consider and sign a separation agreement?

    Do you want to start progressive discipline now only to STILL have an ADEA debacle at the end? Sorry, here again, forfeit the battle and win the war.

    Gene

    P.S. I would immediately bring him in for a serious discussion in confidentiality. I would be very poignant. Stop just short of using any Tony Soprano tactics regarding loose lips.
  • If I had a responsibility to report the behavior, I wouldn't care if the Accounting Assistant confirmed my report or not. I would simply report it and they would have it. You say he has been warned about breaking confidentiality. If it isn't documented, it didn't happen. I wouldn't start my paper trail now.

    How has he been getting away with all these things? Who does he report to? Is this the same person who supposedly warned him and did not document it?
  • Thanks for the advice. I knew that this is what must be done but you never want to be the one left feeling responsible for someone losing their job. He reports directly to the president, who is also the person who warned him the last time this happened. The problem is that we have a very kind president, who has a tendency to "bend" too much for his employees, regardless of the loyalty they show him.
  • [font size="1" color="#FF0000"]LAST EDITED ON 01-20-05 AT 04:17PM (CST)[/font][br][br]I'm going to jump in and speak for me and my cellmate, Pork. So, you have decided that you need to 'save the CEO from himself and his weaknesses of kindness and lack of strength in decision making'. Not knowing a thing about your organization or who has what assigned responsibility, I don't think it is incumbent upon you, or the HR Manager to make a decision as to this person's destiny or what you think should be done with or about him. His supervisor or manager, whoever that is, should be the one to decide where to take this. I suggest that you are not responsible for riding herd on this or another employee's behavior, unless you are their immediate supervisor or department manager. You are, however, responsible for making notes of what you overheard or witnessed and having a closed door discussion with his manager about that. Then follow the desires of the corporate officials as to who is terminated with what reasoning.

    HR departments are not police departments. We are conduits to excellence and we are often defenders of certain of the companies actions and decisions. And between that, we're trainers and mentors and counselors and record keepers and those who guide best practice.


  • I COULD NOT HAVE SAID IT BETTER! Get off the high horse and walk with the senior leadership. Until you have first hand knowledge of legal wrong doing, you are not responsible for the controller's actions. If the controller is a CPA, then, his responsiblities are considerable and the President is likewise liable for financial wrong doing. I would seek out my "personal and confidential relationship" with my President to inform him of factual wrong doing by the controller and listen clearily to his guidance on what he wants me to do with the information. If I have no first hand knowledge and no facts of wrong doing I would tend to my own HR business and leave controllership supervision to the President.

    Thanks Don

    PORK
  • I have to agree with Don D and Pork. You have a responsibility to your discipline and your corporation. You should never fall into the trap of trying to guess what your president will or won't do without giving him/her a chance to perform (or fail to perform). You funnel the info. Let the president act.

    If there is any personal loyalty to be recognized in this situation (and I'm not really sure there is), it may be to the underling whom you are afraid won't back you. That person is probably being placed in a precarious position and could also probably find swift and effective discipline for being the wrong person in the wrong place at the wrong time. Where's the justice in that?

    As an aside, just in case you were on level ground with the acctg exec in the organization, and depending on your rapore, you could try discrete discussion, but I'm not sure I would. You may incriminate yourself in the long run.

    A very wise person once told me to never use someone else's inappropriate behavior as an excuse for my own. I have found that approach to be most helpful and very applicable to all sorts of situations, both personal and professional.
  • Remember, as an HR professional you are doing your job to handle these types of situations. You would not be responsible for someone losing their job. They are responsible for their own actions and you need to remember that.
  • How about another perspective?

    I agree with the confidentiality issue - that is not acceptable, however, there is a broad range of financial information that my accounting staff get to know. It is important that they understand the priorities I assign and how to handle contacts with third parties. An outside observer may think the information I share and we discuss is confidential, and it may be for that third party, but not within the finance and accounting department.

    That does not mean I would ever tell them to hurry to the bank to "green" their paychecks or to caution relatives about doing business with the company or anything of that nature. Just as HR people have access to a wide range of otherwise confidential personnel information, financial and accounting personnel have access to a wide range of otherwise confidential financial information - so please keep this in context.

    Finally, if the company is having financial difficulty in certain areas, the controller may have a need to discuss these things to be able to put them in perspective - and he may not have anyone with whom it is safe to have the discussion, other than the financial assistant. If that is the case, you have a solvable problem.

    Only the President can address the other issues you mention. If the workload is getting done on time and accurately and within the budget for doing so, what does it matter who gets it done? I would say the same for any other department.
  • [font size="1" color="#FF0000"]LAST EDITED ON 01-21-05 AT 10:53AM (CST)[/font][br][br] >How about another perspective?
    >
    >I agree with the confidentiality issue - that is
    >not acceptable, however, there is a broad range
    >of financial information that my accounting
    >staff get to know. It is important that they
    >understand the priorities I assign and how to
    >handle contacts with third parties. An outside
    >observer may think the information I share and
    >we discuss is confidential, and it may be for
    >that third party, but not within the finance and
    >accounting department.
    >
    >That does not mean I would ever tell them to
    >hurry to the bank to "green" their paychecks or
    >to caution relatives about doing business with
    >the company or anything of that nature. Just as
    >HR people have access to a wide range of
    >otherwise confidential personnel information,
    >financial and accounting personnel have access
    >to a wide range of otherwise confidential
    >financial information - so please keep this in
    >context.
    >
    >Finally, if the company is having financial
    >difficulty in certain areas, the controller may
    >have a need to discuss these things to be able
    >to put them in perspective - and he may not have
    >anyone with whom it is safe to have the
    >discussion, other than the financial assistant.
    >If that is the case, you have a solvable
    >problem.
    >
    >Only the President can address the other issues
    >you mention. If the workload is getting done on
    >time and accurately and within the budget for
    >doing so, what does it matter who gets it done?
    >I would say the same for any other department.



  • There must be more to come?
  • Thanks to all the responses. What he was doing did not rise to the level of legality, it was just wrong. Bottom line is that it is not my decision regarding what to, or not to, do with him and upper management is well aware of the situation so if they choose to let it continue, there isn't anything I can do to change their minds.

    I guess what really gets to me is that his incessant whining about his "unhappiness" and sharing confidential financial information with the Acct. Asst. upsets her as well (although she refuses to go to upper management and vents to me instead). This is NOT information she should have, or wants to have, so the idea of her needing it for her job isn't the case.

    Thanks again.
  • Here's the memo for you:

    To: Miz CEO
    From: Good and Faithful HR Servant

    This is to inform you that B. N. Counter in the Finance Department continues to carry out certain behaviors that I feel are not in the company's best interest, among them openly discussing confidential employee information and information relative to the company's financial performance. I have begun to document those I personally observe or overhear and I have those records should you wish to view them.

    Additionally, I.B. Postin in the accounting group has come to me on several occasions, the latest on (date), stating to me that she is uncomfortable with the private company related information he continues to share with her in earshot of other employees. She feels she has no business with that information and I agree with her assessment.

    Should you wish to discuss, please advise.


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