Question
Managerial Accounting Responsibility for ethical action (adapted from CMA exam). Emily Johnson recently joined Growth Chemicals Inc. as assistant controller. Growth Chemicals processes chemicals for
Managerial Accounting
Responsibility for ethical action (adapted from CMA exam). Emily Johnson recently joined Growth Chemicals Inc. as assistant controller. Growth Chemicals processes chemicals for use in fertilizers. During her first month on the job, Emily spent most of her time getting better acquainted with those responsible for plant operations. Emily asked the plant supervisor what the procedure was for the disposal of chemicals. The response was that he (the plant supervisor) was not involved in the disposal of waste and that Emily would be wise to ignore the issue. Of course this only drove Emily to investigate the matter further. Emily soon discovered that Growth Chemicals was dumping toxic waste in a nearby public landfill late at night. Further, she discovered that several members of management were involved in arranging for this dumping. Emily was however unable to determine whether her superior the controller was involved. Emily considered there possible course of action. She could discuss the matter with her controller anonymously release the information to the local newspaper, or discuss the situation with an outside member of the board of directors whom she knows personally.
a. Does Emily have an ethical responsibility to take a course of action?
b. Of the three possible courses of action which are appropriate and which are inappropriate?
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