From the perspective of business ethics, Carolyn’s request is inadequate, although it is understandable from an emotional perspective. Carolyn has shown her awareness of keeping neutral through her position in the first two months of John’s work. However, her inordinate protective nature makes it out of control, and what she is attempting to do now is to protect her private interest and preference against the interest of the whole organization. Possible impacts of this can be cashflow loopholes and negative internal culture, such as intransparency, ignorance of regulation and even bad reputation as a non-profit organization.

It is hard to say that John has been treated unfairly. Although these calls may not be de traced if they come from someone else, the judgement on whether an activity is proper should be based on the behavior itself, and John truly did these calls on his own initiative. Moreover, being exposed by accident is not a convincing reason to neutralize the unnormal behaviors–if someone else also act like John and be observed by accident, he or she will also be punished under relevant regulations. Thus, these treating cannot be seen as unfair. In terms of Kelly’s managing upon him, Carolyn’s words can be taken into consideration but not as conclusive information. As Carolyn has private relationship with both John and Kelly and may be not able to keep objective enough.

Emily’s friendship should not have effect on her decision for both ethic and practical reasons. Firstly, she is responsible for long-term development of MP and be accountable for the proper using of federal. While Carolyn’s request actually may do harm to the organization. Controllers will unavoidably face with the problem of keeping balance between regularization and human relation. Once she begins to blur the boundaries between personal emotion and management, she may begin to lose the balance gradually and find it hard to maintain a sustainable order. Secondly, to consider it under this particular case, the amount of John’s bill is far more beyond an acceptable range for being “flexible” based on the financial condition of MP.

It is better to not reveal the event with others because the feelings of an elder and trusted staff is important as well. However, if Emily still feel hard to make a final decision, she can choose to consult with other experienced staff of the organization who has no private interest relationship with people involved. Emily can keep involved people’s personal identity or detailed information of this event in secret when she consults with others, and only describe the issue in general.