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Evaluating a Business Case Study: Pastor Klaussen.

Hi, I need help answering the questions for the attached case study. They follow after the passage. I am not too sure how to approach them.

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Paul wondered, what should be done? Should Paul take his concerns about the senior's investment loss and Pastor Klaussen's part-time job to other SLT members or the church's head pastor?

Initially, it makes sense for Paul Manfreed to address Pastor Klaussen first, and express his concern directly, and then address the issue with the SLT committee. Pastor Klaussen is involved in a conflict of interest between his position at the church and representing Life Partners, Inc. Pastor Klaussen is in a position that requires an exercise of judgment, and his special interest (that of selling investments) might interfere with the exercise of that judgment. By going directly to Pastor Klaussen it will give the Pastor an opportunity to better understand the situation and resign from LPI (or the church, should he so desire) to avoid future issues.

A conflict of interest is unethical because it disturbs the trusting relationship the parishioners have with the church leadership. There is a potential for loss of trust, which can evolve into dissatisfaction among the congregation. This is potentially a large problem, since 30 percent of the church's congregation are seniors. Paul Manfreed must act at once, addressing Pastor Klaussen, and then alerting the SLT committee members to his concerns. Paul Manfreed has an ethical obligation to take his concerns to both the SLT committee members and the head pastor. This should be done, not as a way of punishing Pastor Klaussen, but rather as an important step in alerting the church's leadership to the potential problem. It would not be slanderous to do so, since Paul Manfreed is not acting maliciously and with false intent. Paul Manfreed is concerned about the conflict of interest, as well as the potential negative effect this situation might have upon the church. One ethical consideration that could be considered is how this issue would look on the front page of the community newspaper, with the accusation that trusting seniors from the congregation made unwise investment decision upon advice of an employee of the church.

The concern of this matter is based upon the concept that Pastor Klaussen has competing professional interests, between shepherding his flock, and helping them with their investments. Such competing interests can ...

Solution Summary

This solution answers the questions regarding a case study involving Paul and Pastor Klaussen and a possible conflict of interest. References included.

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