Could you please help me answer below two questions by below case study about ehtical dilemma and solution? Thank you very much!Mary, a newly appointed accountant to a shipping company, ABC Ltd.,...
Could you please help me answer below two questions by below case study about ehtical dilemma and solution? Thank you very much!
Mary, a newly appointed accountant to a shipping company, ABC Ltd., uncovered several irregular long term practices being conducted. She found out that ABC created false sales transactions by selling to an overseas related company, ABC, in order to show higher sales volume and higher profits. The purpose is to deceive its bander as part of securing a bigger credit facility.
The accountant realizes that this constitutes an offence but is concerned that as a new member of staff, any objections to what he has found that she may raise to the boss may compromise her position, and harm her future career prospects.
Q1) Critically discuss the process by which Mary may ehtically approach this dilemma.
Q2) Outline and discuss the accountant's professional obligations involved in resolving this most difficult position.
Mary has a few ethical dilemmas to consider here.
- Does the organization know that its actions constitute an offense? Probably yes, since they did it to obscure information from their bonder.
- How does she bring this to her superiors without potential job loss?
- If they insist on continuing this practice, does she go along with their actions? If yes, does she even want to work here? Will going along with this practice take Mary down a path from which she will be unable to extricate herself?
- Does Mary have others depending on her income and loss of this job will severely affect her ability to provide for them? In today's economy, this can be a huge ethical dilemma.
- What "Code of Ethics" govern her actions as an accountant? There certainly is an expected code of ethics that applies to accountants. Many professional organizations have an established Code of Ethics that binds its members, but does Mary belong to such an organization?
After Mary thinks through and responds to those questions, she can determine a course of action. Her decisions will likely affect her future for a long time, raising another set of ethical dilemmas.
Many people get ostracized by their peers for taking actions that contradict what others have gone along with. A professional area can be a very small society in which news travels fast, so Mary will have to think about her future ability to practice her profession in the same city. This will influence how she might inform on her organization, for example. Does she make an outright, public accusation? Does she "drop a dime" on the organization, risking that they will know she was the informant because she is the new person in that position?
Starting with the eNotes Reference topic, Code of Ethics, get some background information on what codes should govern Mary's response as well as what protections she may available to her.