Michael was a college student working his way through school by managing at a locally owned restaurant. The employees would steal alcohol, but Michael allowed it because it wasn't much after spending time at the owners home. He felt guilty because they lived in near poverty. He sent out a memo telling the employees not to steal any more liquor or an old an employee. They're met with coworkers to discuss this change. Arnold picked a fight with Michael during a stressful time at work.
The argument got heated and Michael pushed Arnold. Michael resigned the next day and Arnold was promoted in his place because the owners hadn't seen the situation and thought Arnold demonstrated leadership when Michael had not