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Wonder Mattress Company: Placement Fee Ethics

The case scenario:
Mark works for the Wonder Mattress Company in the IS department. He is in charge of looking at new technologies that come on the market and determining if they can be used for the company. In doing so, he must do a cost-benefit analysis and then determine if the current personnel can run that technology. If Mark makes a favorable recommendation, the company usually purchases it. Mark attended an emerging technologies conference and met Lance, a salesman for a new technology Mark was exploring. After evaluating this technology, he decided not to recommend it to his company. Lance then told him he was authorized to offer him a $10,000 "placement fee" if he implemented the technology in his company. Mark then recommended the technology, and it was installed.

This solution specifically addresses the following:
1. A recommendation of what action the organization should take.
2. An explanation of what the organization's responsibility should be regarding ethics as it relates to IS.
3. Justification for your recommendation.

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Solution Preview

1. In selecting new technologies, it is noted that Mark is responsible to conduct a cost-benefit analysis to determine if current personnel are able to utilize the technology. Mark evaluated the technology from Lance's firm and did not recommend it. The organization should conduct an internal investigation to determine what changed Mark's recommendation, as the technology was originally rejected and now Mark supports it. At a minimum, Mark should be asked to fully ...

Solution Summary

This solution analyzes a case study scenario in which an Information Systems employee, Mark, is tasked with providing a cost-benefit analysis on emerging technologies. His latest recommendation is influenced not by the results of his analysis, but by a $10,000 "placement fee" he is paid to suggest a certain company's product. The solution addresses the questions on what action the organization should take against Mark, how ethics were - or were not - involved, and justifications of the recommended actions. The solution is about 300 words.