Whose Back Do I Scratch?

Author
Eric Nelson, Denise Oas
Region
North America
Topic
Ethics & Social Justice
Marketing & Sales
Length
2 pages
Keywords
agency theory
moral hazard
internal marketing
service failure
frustration
Copyright Holder
Journal of Critical Incidents
Student Price
$4.00
Target Audience
Undergraduate Students
Executive Education

Danielle O’Reilly was frustrated. She paid for a massage several weeks ago and was really looking forward to it. However, she had just been told that she was not going to get her massage and there was nothing she could do about it. Danielle refused to believe she paid thirty-five dollars for nothing, but what could she do?

Learning Outcomes
  1. Apply Agency Theory to an intermediary relationship.
  2. Determine the self-interests that drive the agent-principal problem.
  3. Apply ethical frameworks to the agent-principal relationship.
  4. Make recommendations for action that take into account the self-interests of agents and principals.
  5. Determine the implications of moral hazard in an intermediary relationship.