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After graduation as a business major, Reyna was considering several positions. It was the height of a business and technology boom. Although starting salaries were attractive, her professors predicted that many firms would not survive.
Reyna applied for an entry-level position at Sunset Marketing Communications, a recently funded start-up. During the interview process, she began to doubt that the company would be successful. The services it provided lacked innovation and the corporate structure seemed disorganized. Reyna wondered if this boom-era company would eventually fail.
Sunset gave Reyna an attractive job offer and aggressively pursued her over a two-week period. The HR Director even sent her flowers and increased the original offer.
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When Reyna received a more secure job offer from an established company, she contacted the HR Director at Sunset and told him about the competing offer. That same day Reyna received a call from the venture capital firm that funded Sunset. This top-tier VC firm explained that they were giving Sunset full funding for the year. This changed Reyna’s mind and she accepted Sunset’s offer. She felt that it would more likely survive and prosper with the venture capital funding.
After a week at her new job, Reyna realized the other employees were incompetent. Further, despite the assurances from the VC firm, Sunset only received a small portion of the promised investment. The company was now close to bankruptcy. Two weeks later, the CEO moved to New York and the firm closed. Reyna felt betrayed. She was abruptly fired after only two months.
Reyna had to learn a hard lesson. She was back on the job market.
Was Reyna treated fairly in the situation? Was the venture capitalist firm ethically wrong by lying about the funding? Is it Reyna’s fault for not looking into the company or is it the company’s fault for misleading Reyna?