1. Do financial officers have an ethical obligation to help in reducing negative environmental impacts? Identify and discuss which parts of the IMA’s Statement of Ethical Professional Practice might apply. Also, describe the role that flexible budgeting may play in reducing environmental impacts.
2. Suppose that Harry and Connie embark on a cooperative effort to eliminate any excessive packaging. The projected results are impressive. The expected reductions will save $3 million in shipping costs ($0.50 per package), $1.5 million in packaging materials ($0.40 per package), 5,000 trees, and 1.25 million barrels of oil. Are there any ethical issues associated with these actions? What standards apply?
3. Identify two potential ethical dilemmas that might surface in the use of flexibility budgeting for performance evaluation (the dilemmas do not need to be connected with environmental activities).