Case 13-64 Ethical Considerations Student posts
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1. Len’s behavior is completely unethical. He decreased inspections that are vital to customers to ensure quality service to focus on achieving goals that will bonus him and his employees. Furthermore, he has an obligation to his customers to replace/repair defective products as not doing so can potentially pose a safety issue and deteriorate the quality as well. Last, the morale of employees and customers will surely go down by removing the visits to customers’ plants as this program was set up to ensure a commitment to quality and service. He has compromised his position, employees and customer safety and satisfaction for financial gain.
2. The company can change the structure of the ambitious quality program to discourage behavior that could compromise the safety of stakeholders and customers of the organization. Also, they should absolutely address the lack of integrity displayed by Len, a leader in the organization. Disciplinary action is warranted in this case.
3. If Len were bound by the ethical principles in the “Statement of Ethical Professional Practice” he would be in clear violation of the following standards:
- Perform professional duties in accordance with relevant laws, regulations and technical standards – safety is a regulation for every business. The ignorance of defective and damaged equipment can pose a safety issue.
- Mitigate conflicts of interest – His ability to make a decision to ensure a bonus in this case is a conflict of interest.
- Refrain from engaging in any conduct that would prejudice carrying out duties ethically – he clearly is violating this principle.
- Abstain from engaging in or supporting activity that might discredit the profession – in violation.
- Communication of information fairly and objectively.
As a leader, Len should demonstrate the character and integrity that one would expect from a representative of the organization. This is the case regardless of whether or not he is an accounting professional.