Checkpoint: Briefly Applying a Decision-Making Framework
Who are the stakeholders involved in this decision?
The stakeholders that are involved in this decision process are Anne the CEO and Sue the chief financial officer. 2.
What are the ethical issues involved?
The ethical issues that are involved are that Anne the CEO wants Sue to change financial statements to reflect the steady grow that the company has held for the last few years. Also, Anne brought up that taking money ($124,000) to fabricate a better duct system for two different job sites. 3. What should Sue do?
Sue should not fabricate any financial statements for the company that is considered falsifying statements about the company. If she were to do this then the company would get into trouble, Sue would be in trouble. Sue would lose her credibility and so would the company. The company would lose shareholders, investments, clients, and banks that all have interest in this company. One would think that Sue should go to the board of the company to let them know what Anne had said to her and if the board does not like it then Sue would have to do the hard thing and quit. Sue can also let SEC (Securities and Exchange Commission) and SOX (Sarbanes-Oxley) know what is going on and what the CEO of the company wants her to do. One should not put themselves into dangers way just for the good of the company because in accounting one should look at the shareholders (public interest) and the accountant’s principles to make sure that the two are in the best interest.
Axia College. (2007). Business & Professional Ethics for Directors, Executives, & Accountants.
Retrieved on July 7, 2011 from Axia College, ACC/260, week eight.
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