Business Case Study: The A7D Affair

Decent Essays
In the case study The A7D Affair, Kermit Vandivier, an employee of Goodrich

Corporation, is participates in fraud and is found guilty for conspiracy to defraud the LTV

Aerospace Corporation. In this case study, I will describe what specifically happened,

who else took part, and whether or not the actions taken are seen are morally right or

wrong.

Below are the facts that were involved in the case:

 The LTV Aerospace Corporation made a contract with Goodrich for an order of

202 brake assemblies for their A7D attack plane.

 10 years earlier, Goodrich had built a brake for LTV that didn’t meet expectations

and ultimately severed ties between Goodrich and LTV.

 John Warren was initially made the project engineer but later assigned
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The extent to which Lawson, Vandivier, and Gretzinger considered the potential moral

issues was very high. They were all aware that there was wrong being done within the

company and spoke up a few times to combat the situation but ultimately fell victim

participating in fraud.

There were cases of groupthink, diffusion of responsibility, and bystander apathy within

the hierarchy of the company. Groupthink was seen when Vandivier told Gretzinger

what Lawson had asked him to do. After Gretzinger had come back from seeing Russell

Line, manager of Goodrich Technical Services Section, he realized that if he didn’t want

to lose his job, he would have to participate in fraud. This case also shows how a

company with an obvious hierarchy would manage their ethical problems by diluting

responsibilities among the employees. Despite them knowing what was truly going on,

they continued to work on the project and went about it without doing anything that

would incriminate their superiors. This was done so that they could dilute the

responsibilities among other workers. Lastly, bystander apathy was seen
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This right here resulted in

Vandivier working together Gretzinger to prepare the qualifying data.

It is easy to know what the right thing to do is but if placed in the same situation as

these individuals, I couldn’t whole heartedly say I would let my feelings dictate my

actions. I more than likely would have participated in fraudulent actions than to have

said something if it meant I had to provide for my family and myself. But overall,

Lawson, Vandivier and Gretzinger all considered the moral issues of what they were

doing but still participated in fraud.

To see if Vandivier was right to “blow the whistle” we consult 2 theories – Divine

Command Theory and Utilitarianism.

The divine command theory states that things are morally good or bad solely because

God’s command. The question this theory poses is “Are morally good acts willed by

God because they are morally good, or are they morally good because they are willed

by God?” which can be answered in a number of ways. In the case of Vandivier, he felt

the need to “blow the whistle” because it was the right thing to do and because it was

the right thing to do, God must have commanded

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