A. Assume that you are a supervisor at Carter Branchcomb LLC (the “Firm”), a Nor

Question

A.    Assume that you are a supervisor at Carter Branchcomb LLC (the “Firm”), a North Carolina Limited Liability Company with its principal office in Charlotte, NC. The Firm’s principal business is providing consulting services to medium sized financial institutions within the State of North Carolina. A “medium sized financial institution” is defined as a financial institution with total assets of less than $50M dollars.  

Two of your employees, August, who has an employment agreement which you inherited in connection with the recent acquisition made by the Firm, and Sarah, who is also an employee not subject to a collective bargaining agreement, have formed an IRS 501(C)(3) entity to promote affordable housing in Charlotte. As a part of the activities of that entity, those employees have made contact with a number of the Firm’s clients and solicited their involvement in the non-profit affordable housing efforts. The employees have also participated in peaceful demonstrations for affordable housing.

A number of the Firm’s clients have contacted me with concerns about the activities of those two employees. As your manager, I have asked for your advice on this matter and have suggested that you consider terminating both employees immediately

Please prepare a memorandum addressed to me covering the following issues:

1.     Discuss the issues raised by the activities of the two employees, the potential consequences of those activities to the Firm, and your recommendations as to what actions the Firm should take based upon the facts outlined. What additional information that is not given would be useful in your decision making process. Please elaborate.

Explanation / Answer

To: Jonathan Hagger, General Manager

From: Emilia Thatcher, Supervisor

Date: January 28, 2018

Subject: Unsolicited activities with regard to affordable housing

Mr. Jonathan,

I write this memorandum with regard to illegal and unsolicited activities of Ms. August and Ms. Sarah, the employees in-charge of affordable housing activities. This memo is based on the complaints that I have received from our clients.

We have appointed Ms. August and Ms. Sarah in September 2017. According to their joining agreement, they were given the responsibilities to promote affordable housing projects among low income and middle class individuals. But they have violated this agreement by involving with our clients.

As per the complaints from our clients, Ms. Sarah and Ms. August were displaying sort of unsolicited activities by involving in the business activities of our clients. They also persuaded our clients to invest non-profitable housing projects. The has created disturbances in the clients’ relationship with our firm. According to the clients they had been forcibly persuaded to invest in non-profit housing projects. The situation created by Ms. August and Ms. Sarah has reached such a level that their activities starting affecting our clients’ business, while affecting their profits. This sort of involvement to invest in non-profitable housing project is not a business policy of our clients who thrives on profits from a profitable business.

Our clients have raised complaints against the activities of Ms. August and Ms. Sarah and asserted that they would break the business contract with Carter Branchcomb LLC, if such involvements continue from Ms. August and Ms. Sarah.

In this regard, I request you to kindly look into this matter. I suggest you to immediately terminate Ms. August and Ms. Sarah, as Carter Branchcomb would lose the valuable clients if it continues. I’ve listed some suggestions apart from this memo, but I would like to discuss more about in our personal meeting.

Please let me know if you have any queries

Best,

Emilia Thatcher

Supervisor

Carter Branchcomb LLC.

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Additional Information for Decision making process

Prior to taking a termination decision, Ms.August and Ms.Sarah shall be asked for an explanation on this issue. They shall be informed that they will be terminated if they continue such involvement with the clients.

The clients shall be met and a letter shall be send to them apologizing of such ivolvements while warning Ms. August and Ms. Sarah. This helps to maintain the relationship with the clients. These options shall also be considered during the decision making process

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