Case $1$: Olivia Smith

Olivia Smith is the production manager of a company that produces several clothing lines for a renowned fashion label. Olivia joined the company nine years back and introduced a performance$-$based payment system. A performance$-$based payment system is rare in the clothing production industry in that locality. In this system, employees are paid based on the number of units they produce, and the quality of the units produced. Employees are typically paid below$-$average hourly pay but high bonuses.

Moreover, there are no health plans incorporated into this payment system. Therefore, efficient employees are earning above$-$average incomes. Employees with long$-$time experience receive salaries from $$75,000-$ $$87,000.$ Most experienced employees like the system because they receive excellent compensation and can significantly influence their own earnings.

However, some employees do not like this system because they cannot keep up with the intensive production methods. As a result, they earn less than experienced employees. Therefore, they want more payment security from their job. However, as experienced employees like this compensation system, which also benefits her, Olivia prefers to keep it the same. Employees who do not like this system and cannot cope with the intensive production methods eventually leave the company.

Isabella Brown and two of her friends, who joined the company three years back, are very unhappy about this pay system because they cannot cope with the intensive production requirements and methods and are earning less than experienced employees. They feel the pay system is unfair and are looking for another job.

However, Sophia Martinez and her five friends who have worked for the company for the last six years like the system as they are earning excellent salaries and are very satisfied that their experience and efficiency are rewarded.

Required

Part A: Applying theories of ethics $(1,000$ words max$)$

You must undertake independent research into the theories of egoism, and utilitarianism. Now apply them as follows assuming that you are an expert in business ethics.

$1.$ Analyse the ethical issues of Olivia Smith$$s case using the theory of egoism.

$2.$ Analyse the ethical issues of Olivia Smith$$s case using the theory of utilitarianism.

In each case, you must identify the key features of the theory being used and show how they apply to the case. Conclude the section by explaining how a theoretical knowledge of ethics will help Olivia Smith deal with ethical issues.

Case: Natalie Patel

Natalie Patel is a partner in a public accounting practice. Her practice is popular with the local community because one of the senior partners is local. One of Natalie$$s clients, a dynamic businesswoman, Zoe Turner, insists that Natalie always comes to her office to consider financial matters. While there, Zoe always wants to have a glass of expensive wine with Natalie while they discuss business.

Natalie has realised for a long time that this is normal with this client. She is very proud of her firm, the staff, and the fact that the firm is earning excellent fees. Part of Natalie$$s success is the effort she has put into nurturing the relationship with Zoe. Due to this relationship, Zoe always felt comfortable with Natalie and her staff.

However, there was another side to this approach. Natalie$$s firm has become more dependent on Zoe$$s business. Natalie observed that Zoe is becoming more demanding, and Natalie is concerned about the issue. In the past, Zoe overruled Natalie$$s accountants on minor matters. Currently, one junior accountant from Natalie$$s firm identified a $$window dressing$$ issue in the accounts and discussed the issue with Zoe. Zoe was unhappy about it$,$ called Natalie and demanded that Natalie accept the accounts as presented by Zoe$$s company.

Additionally, Zoe mentioned an exciting new business project to Natalie and said she would brief her about it at the next visit. Zoe is planning to appoint Natalie$$s practice to manage the accounts of the new venture as well. Zoe insists that Natalie and her husband visit her house for dinner one night, where they will discuss the new business in detail.

Required:

Part B: Using an ethical decision$-$making model $(500$ words max$)$

Take Natalie Patel through the AAA decision$-$making model step$-$by$-$step and arrive at the best ethical outcome for her.

Part C: Using APES $110(1,000$ words max$)$

Natalie Patel is a Chartered Accountant and so are the accountants in the firm, and therefore APES $110$ applies to all of them.

Advise Natalie Patel of the provisions of APES $110$ that are relevant here, especially the fundamental principles, types of threats and relevant safeguards. Also, recommend to Natalie Patel what she must do to be compliant with APES $110.$