Week 7 – CheckPoint - Briefly Applying a Decision-Making Framework
Anne Distagne, the CEO of Linkage Construction, Inc. is the involved stakeholder in this case. She was the person involved in the decision-making process of falsifying information to keep from displaying the significant increase in profit. There are several ethical issues involved. The first issue is Anne's demeanor toward the accountant Sue. Anne used her superiority with Sue as a threat so that Sue can revise the figures. The second issue was the details involved behind the manipulation of numbers. Anne wanted to bring down the 35% gain that was over from the previous year for fear of her image that she had no control over the company's activity. There is also fear of coming up short the following year. Anne wants to not report the true accuracy of the construction projects so that there is a smaller number reported on the percentage of expected profits on each job. Anne also wants to expense the $124,000 in R&D costs that was incurred so that they can use it to falsify out of job costs in inventory for the ducting system from the two jobs. Sue should come up with a plan and weigh out all of the options on the scenario presented that was presented to her. Then address it with Anne. Anne may not be in favor of the right decision because it will not be in favor of her policy of steady growth, but it is the most ethical and right one. Sue should include in her discussion the possible alternatives available and stress that experiencing unethical will only lead to making more unethical decisions, which can eventually hurt the company. It only takes one-time to make an unethical business decision to easily take that path again.
Please join StudyMode to read the full document