CT 9-5 ETHICS CASE: You are an accountant in the budgetary, projections, and special projects department of Fernetti Conductor, Inc., a large manufacturing company. The president, Richard Brown, asks you on very short notice to prepare some sales and income projections covering the next 2 years of the company's much heralded new product lines. He wants these projections for a series of speeches he is making while on a 2-week trip to eight East Coast brokerage firms. The president hopes to bolster Fernetti's stock sales and price.

You work 23 hours in 2 days to compile the projections, hand-deliver them to the president, and are swiftly but graciously thanked as he departs. A week later, you find time to go over some of your computations and discover a miscalculation that makes the projections grossly overstated. You quickly inquire about the president's itinerary and learn that he has made half of his speeches and has half yet to make. You are in a quandary as to what to do.

1. Who are the direct stakeholders in this situation? Who are indirect stakeholders? Remember there are both direct stakeholders and indirect stakeholders. Indirect stakeholders do not take action but may be affected by action of direct stakeholders

2.What are the consequences of telling the president of your gross miscalculations?

3.What are the consequences of not telling the president of your gross miscalculations?

4.What is the ethical dilemma to you in this situation? An ethical dilemma occurs when values conflict such as when ones personal values conflicts with organizational values.

5.Which Principles (Honesty, Fairness, Objectivity and Responsibility) of the IMA Statement of Ethical Profession Conduct are involved and why? What are the ethical considerations to you in this situation?

6.Which points within the four Standards (Competence, Confidentiality, Integrity, Credibility) in the IMA Statement of Ethical Professional Conduct apply and why? To receive full credit, you must be specific (i.e. if it applied, not just the Standard of Confidentiality, but which of the three points mentions under it apply to this situation)

7.What options does the IMA Statement of Ethical Professional Practice suggest for resolving this dilemma. What would you do?