During several visits to the plant, you have overheard some employees and mid-level supervisors discussing the issues related to the smelting furnace and some potential solutions to the current regulatory problem. Some of these conversations are troubling because they are suggesting covering up the issue through false or misleading data reporting. Based on these conversations, you feel obligated to discuss the issue of ethical responsibility with the executive team. Be sure to address the following:

Examine the importance of ethics in managerial accounting. Analyze how ethics, both good and bad, can affect the organization as a whole. Consider not only the financial impact but also the direct and indirect impact on stakeholders, such as employees, customers, suppliers, etc.

Propose at least two recommendations that the company could implement to help ensure high ethical responsibility at all levels of the organization.