Taken from Case 1-2 Giles and Regas.
Ed Giles and Susan Regas have never been happier than during the past four months since they have been seeing each other. Giles is a 35-year-old CPA and a partner in the medium-sized accounting firm of Saduga & Mihca. Regas is a 25-year-old senior accountant in the same firm. Although it is acceptable for peers to date, the firm does not permit two members of different ranks within the firm to do so. A partner should not date a senior in the firm any more than a senior should date a junior staff accountant. If such dating eventually leads to marriage, then one of the two must resign because of the conflicts of interest. Both Giles and Regas know the firm's policy on dating, and they have tried to be discreet about their relationship because they don't want to raise any suspicions.
While most of the staff seem to know about Giles and Regas, it is not common knowledge among the partners that the two of them are dating. Perhaps that is why Regas was assigned to work on the audit of CAA Industries for a second year, even though Giles is the supervising partner on the engagement.
As the audit progresses, it becomes clear to the junior staff members that Giles and Regas are spending personal time together during the workday. On one occasion, they were observed leaving for lunch together. Regas did not return to the client's office until three hours later. On another occasion, Regas seemed distracted from her work, and later that day, she received a dozen roses from Giles. A friend of Regas's who knew about the relationship, Ruth Revilo, became concerned when she happened to see the flowers and a card that accompanied them. The card was signed, "Love, Poochie." Regas had once told Revilo that it was the nickname that Regas gave to Giles.
Revilo pulls Regas aside at the end of the day and says, "We have to talk."
"What is it?" Regas asks.
"I know the flowers are from Giles," Revilo says. "Are you crazy?"
"It's none of your business," Regas responds.
Revilo goes on to explain that others on the audit engagement team are aware of the relationship between the two. Revilo cautions Regas about jeopardizing her future with the firm by getting involved in a serious dating relationship with someone of a higher rank. Regas does not respond to this comment.
Regas promises to talk to Giles and thanks Revilo for her concern. That same day, Regas telephones Giles and tells him she wants to put aside her personal relationship with him until the CAA audit is complete in two weeks. She suggests that, at the end of the two-week period, they get together and thoroughly examine the possible implications of their continued relationship. Giles reluctantly agrees.
However, Giles appears at the CAA audit a few days later. He pulls Regas aside and states, "I do want to put our relationship on hold until after this audit."
"We cannot be talking about this now! The audit team or the client could hear."
"Then let's have dinner tonight to discuss it. I won't leave until you say yes."
"Okay."
As Regas is returning to the audit room, Revilo says, "The team is uncomfortable with you and Giles having personal conversations in front of them. You promised this would stop."
"I appreciate your concerns again. I am working on it! Please give me some time and space."
"You don't have much time. Some of the team are talking of going to HR or the managing partner about the situation."
Required:
Analyze the case using GVV.
What are the main arguments Revilo (and the audit team) are trying to counter? What the reasons and rationalizations Revilo needs to address?
What is at stake for the key parties?
What levers can Revilo use to influence Regas and Giles?
What levers can Revilo use to influence Regas and Giles?
What is the most powerful and persuasive response to the reasons and rationalizations Revilo needs to address? To whom and when?

A Criticism of the Kohlberg Model Is That It

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