Question
ane Jensen was looking forward to her first day in a new role as financial controller for the manufacturing unit at Speedy Motors Ltd, although
ane Jensen was looking forward to her first day in a new role as financial controller for the manufacturing unit at Speedy Motors Ltd, although by the end of her first day she wished she had never changed jobs.
Jane had worked with Speedy Motors for eight years. Her last role was as senior accountant supporting the group CFO, Ali McAllister. McAllister had always been impressed by Jane and had recommended her for this new role. In her new role Jane will continue to report to the CFO, as well as to the plant manager, Bill Ranger.
Janes first meeting had been with Bill - the plant manager and Jane was keen to make a good impression. Year end was fast approaching, and Bill seemed quite concerned that they may miss their financial targets. Jane wasnt sure if Bill was joking or serious when he added, and you wont be popular if we miss the targets. Jane was left feeling confused.
Janes next meeting had been with Ricardo, the plant accountant, to review the financial statements for the previous month. Jane had wanted to review the accounts in detail to make sure everything was ready for year end. Thats when Jane noticed a large jump in sales for the month. When she asked Ricardo, he explained that new orders worth $1.5 million had just been booked as sales. Jane raised her eyebrows but these orders wont be completed and shipped before the year end she added. Ricardo replied, dont worry about it, we book sales before they are shipped all the time. Bill says its ok since they will become sales eventually. Jane started to speak but Ricardo interrupted, I dont know if I told you, he said, but my wife recently had a baby, and I could really do with this years bonus.
REQUIRED:
a) Describe the ethical dilemma that Jane is facing.
(2 marks)
b) What ethical principle(s) would Jane be violating if she allows the orders to be booked as sales?
(1 mark)
c) Explain the possible implications to the organisation if Jane ignores the ethical dilemma you have identified in (a).
(2 marks)
d) Explain how the organisational culture may have influenced and contributed to the ethical dilemma that you have identified in (a).
(2 marks)
e) Identify and describe two alternative courses of action that Jane can take to resolve the ethical dilemma.
(2 marks
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