D.E.M.

Drugs Ltd
32, English Building
Champaign, IL 61820
www.DEMDrugs.com

To: President Julia Smith

From: Brittany Girgis, Courtney Gilles, Mallory Mangano
Date: October 30, 2008
Subject: Discrimination at D.E.M. Drugs

Problem
Discrimination is widely taking place within D.E.M. Drugs, specifically the Human Resources
Department. Complaints within the company are being filed for unequal pay, inconsistent disciplinary
action, and inconsistent hiring practices, all because of discrimination towards race and gender. Legal
and reputation allegations will escalate if this issue is not addressed. We would like to further explain
the problem, expand on the implications and offer recommendations to solve the problem.

Summary of Problem
The following practices are unethical: Unequal pay, inconsistent disciplinary action, and inconsistent
hiring practices. “Unethical” is defined as contrary to conscience, morality or law (“Unethical”). These
situations are unethical because they are results of discrimination in race and gender. These issues are
also illegal based on the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age
Discrimination in Employment Act. We breaking our own Code of Ethics, but we are also breaking the
law, which in itself is unethical (“Discriminatory Practices”). We are at risk for legal issues presented by
employees that will jeopardize the future of D.E.M. Drugs.

D.E.M. Drugs wants to reiterate that our company is an equal opportunity employer, and that every
potential hire should be based on merit, skills, and knowledge rather than gender, age, and/or race.
Everyone deserves the same opportunity to succeed and advance within D.E.M. Drugs, and everyone is
entitled to the same amount of respect, regardless of race and gender. As the company’s Code of Ethics
states, “D.E.M. Drugs is an equal opportunity employer; The company treats all employees fairly
regardless of race, religion, gender, disability, age, or origin,” we should be upholding the highest
integrity of having our core values match those of our company’s behaviors.

We want to emphasize the severity of the problem and present possible recommendations to improve
D.E.M. Drugs’ ethical practices.

Discussion of Problem
The implications of these ethical issues are very significant. The most pressing implications are those
that could come from us breaking the law. Under Title VII of the Civil Rights Act of 1964 and the Equal
Pay Act, many of our employees currently have the right and the reason to sue us after filing a claim
with the United States Equal Employment Opportunity Commission and the Fair Employment Practices
Agencies. Possibly even more threatening is the right any individual has by law to file a charge on
behalf of another person (in order to protect the aggrieved person’s identity), meaning an employee can
file a claim for a fellow employee (“Federal Laws Prohibiting Job Discrimination”). Clearly any claim
or lawsuit will lead to major legal and financial problems. Additionally, a request made by one
employee could motivate other employees to file a claim as well. We could potentially have multiple
claims coming against us all at the same time.

This discrimination, possible lawsuits, and customer and employees’ “word of mouth” will also damage
the image of our company. As a new and growing company, our image is vital to us. As Benjamin
Franklin once said, “China, glass, and reputation are easily cracked, and never well mended again.”
(“Quotation Details”). Our image as a reliable, secure and trustworthy company is being destroyed by
these unethical practices that are escalating. Ours stocks are dropping, reiterating the fact that these
ethical issues are impacting our company and our stakeholders. The aware public, the active public, and
our own employees will continue to lose trust in us as they see our hypocrisy.

If the same hiring and workplace discriminations ensue, morale within the company will also continue to
deteriorate. When employees start recognizing the prejudice in hiring and salaries, bitterness towards the
President, the company, and other employees will instigate. Gossip is spreading, and it’s giving our
employees more motivation to speak up about their complaints. Not only is this potential disaster for the
future, it is currently affecting our efficiency as a company. Cohesiveness amongst employees drops
dramatically as their vision of our goal as a company becomes blurred through these unethical practices.

Lack of efficiency means we’re losing money. As a new company this is important because we’re even
more susceptible to financial fallouts.

Recommendations
After taking all of these issues into consideration, we have developed possible remedies to ensure the
ethical advancement of D.E.M. Drugs. First of all, we recommend posting notices displaying the rights
of employees. This will include information on what to do and who to contact if their rights have been
violated. This notice will also define each employee’s ethical responsibilities within D.E.M. Drugs.
Secondly, we should also respond immediately to any reported instances and place complaints in the
highest of regards. Our strongest recommendation is to implement leadership seminars and workshops
that emphasize multiculturalism and equality. These seminars, provided by an outside consulting firm,
will include intimate group settings, interactive activities, and a motivational multicultural speaker. Our
employees need to understand that D.E.M. Drugs’ culture is extremely diverse and employees need to
acknowledge, respect and gain insight on equality and increased integrity throughout. We view these
seminars as the best solution because they will promote and facilitate awareness and discussion of
equality as well as acceptance of differences among co-workers. In the long run, these recommendations
have the potential to strengthen our positive image, increase cohesiveness and morale company-wide,
and ultimately increase our financial stakes.

Thank you for your time and consideration. Please contact us with any further questions or concerns you
may have in regards to this problem at D.E.M. Drugs.

Sincerely,

Brittany Girgis, Courtney Gilles, Mallory Mangano

 Work Cited

"Dicriminatory Practices." 2 Sept. 2004. U.S Equal Employment Opportunity Commission. 4 Dec. 2008
<http://www.eeoc.gov/abouteeo/overview_practices.html>.

"Federal Laws Prohibiting Job Discrimination." May 2002. U.S Equal Employment Opportunity
Commission. 4 Dec. 2008 <http://www.eeoc.gov/facts/qanda.html>.

"Quotation Details." The Quotations Page. 2007. Classic Quotes. 4 Dec. 2008
<http://www.quotationspage.com/quote/36318.html>.

"Unethical." 2008. The Free Dictionary. 4 Dec. 2008 <http://www.thefreedictionary.com/unethical>.