1. Who are the stakeholders involved in this decision?
The stakeholder involved in this decision is Anne Distagne, the CEO of Linkage Construction, Inc. She was the individual involved in the decision-making process. of falsifying information to not display the significant increase in profit. 2. What are the ethical issues involved?
There are several ethical issues involved. The first issue is Anne's demeanor towards the accountant Sue. Anne used her superiority with Sue as a threat so that Sue can revise the figures. The second issue were the details involved behind the manipulation of numbers. Anne wanted to bring down the “...35% gain...” (Axia College, 2011, p. 288) 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...” (Axia College, 2011, p. 288). Anne also wants to expense the “...$124,000 in R&D costs...” (Axia College, 2011, p. 288) 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. 3. What should Sue do?
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 being unethical will only lead to making more unethical decisions in the future, which can eventually hurt the company. It only takes one time to make an unethical business decision to easily take that path again. Depending on the decision Anne's makes, if she opts for her idea to manipulate numbers I would let her...
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