In each of the following scenarios outline the ethical problem and suggest ways in which the organisation may solve the problem and prevent its reoccurrence.

(a) A director’s wife uses his company car for shopping.

(b) Groceries bought for personal use are included on a director’s company credit card.

(c) The director is sent overseas on business with a business air ticket but he converts it to two economy class tickets and takes his wife with him.

(d) A director negotiates a contract for management consultancy services but it is later revealed that her husband is a director of the management consultancy company.

(e) The director of a company hires her son for some holiday work within the company but does not mention the fact to her fellow directors.

(f) You are the accountant to a small engineering company and you have been approached by the Chairman to authorise the payment of a fee to an overseas government employee in the hope that a large contract will be awarded.
(g) Your company has had some production problems which have resulted in some electrical goods being faulty (possibly dangerous) but all production is being dispatched to customers regardless of condition.
(h) Your company is about to sign a contract with a repressive regime in South America for equipment which could have a military use.Your own government has given you no advice on this matter.
(i) Your company is in financial difficulties and a large contract has just been gained in partnership with an overseas supplier who employs children as young as seven years old on their production line. The children are the only wage earners for their families and there is no welfare available in the country where they live.
(j) You are the accountant in a large manufacturing company and you have been approached by the manufacturing director to prepare a capital investment proposal for a new production line.
After your calculations the project meets none of the criteria necessary to allow the project to proceed but the director instructs you to change the financial forecast figures to ensure the proposal is approved.
(k) Review the last week’s newspapers and select three examples of failures of business ethics and justify your choice of examples.
(l) At the year-end, goods are dispatched although not tested in order to improve the current year’s sales figures.The management fully expect returns to be made but not within the period prior to the auditor signing the accounts.