AboutLeo Lingham Expertise In Managing a business, I can cover all aspects of running
a business--business planning, business development, business auditing, business communication, operation management, human
resources management , training, etc.
Experience 18 years of working management experience covering such areas
as business planning, business development, strategic planning,
marketing, management services, personnel administration.
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24 years of management consulting which includes business planning, strategic planning, marketing, product management, training, business coaching etc.
Expert: Leo Lingham Date: 4/18/2008 Subject: ethical delimma
Question Chris, CPA is currently the assistant controller for the smithstown Division of Main Manufacturing,Inc.Chris is highly respected within the organization, and has been offered a position at the headquarters with
an increase in pay.
Chris has been working on a confidential project to analyze the profitability of the smithstownDivision.Although his report is not finished,based on the information that has been gathered, Chris' report is going to recommend the closing of the Smithstown Division.This decision would obviously cost the smithstown community jobs and severely affect the local economy which is heavily dependent on Main Manufacturing.
After work Chris entered the local tavern where he sees his friend Tim,who plays third base on the Smithstown Division's softball team with Chris.Chris is also godfather to Tim's 3 year old daughter.Tim is an assembly line worker who would certainly lose his job if the plant were closed. Before Chis was aware of the possible plant closing, he had
convinced Tim and his wife Tina that it was better for tax purposes to buy a house than to continue to rent. As a result,Tim and Tina have been house hunting.They are about to put in a contract on the house.However,they will only be able to make the mortgage payments if both Tim and Tina
keep their jobs.At work,Tim has heard some rumors about the
possibility of the plant being closed.Therefore he decides to ask his friends,Chris,who might have more information about the possible plant closing,as to whether he should proceed with buying the house.
The questions are:
1.Identify the ethical issue(s)
2.who are the stakeholders other than Chris,Tim?
3.What are the possible alternatives available to Chris?
4.What are the ethics of each alternative?
5.What action(s) should be taken by Chris?
Answer 1.Identify the ethical issue(s).
[THE ETHICAL ISSUES INVOLVED ARE
*universquism>>>>>upholding honesty
*utilitarianism>>>>>concerned with consequences.
*virtue ethics >>>>>moral rights.
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2.who are the stakeholders other than Chris,Tim?
TINA / TIM'S daughter.
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3.What are the possible alternatives available to Chris?
1. INFORM TIM/TINA, BEFORE THEY SIGN TO BUY THE HOUSE.
2. NOT INFORM/WARN,BUT ALLOW THEM TO BUY THE HOUSE.
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4.What are the ethics of each alternative?
1. INFORM TIM/TINA, BEFORE THEY SIGN TO BUY THE HOUSE.
UPHOLDING HONESTY.
2. NOT INFORM/WARN,BUT ALLOW THEM TO BUY THE HOUSE.
CONCERNED WITH CONSEQUENCES.
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5.What action(s) should be taken by Chris?
INFORM TIM/ TINA ABOUT THE COMPANY CLOSURE.
GIVE THEM THE OPPORTUNITY TO DECIDE ON BUYING
THE NEW HOUSE.
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REGARDS
