MBA 701 Strategic Cost Management

Ethics Assignment

Green Acres Inc. is a large U.S.-based multinational producer of canned fruits and vegetables. While Green Acres has a reputation of traditionally using only organic suppliers for its fruits and vegetables, it has recently experimented with produce from farmers known to have genetically modified crops. These genetically modified fruits and vegetables are often cheaper than their organic counterparts because farmers are able to achieve greater yields than with organic crops, and they have provided the firm with a way to cut its production costs. As Green Acres's chief of operations, the firm's marketing researchers have informed you that consumers continue to view Green Acre's products as organic despite the fact that Green Acres has never placed the word organic on its product labels. Moreover, the marketing researchers have discovered that Green Acres's sales and profits have dramatically increased in the wake of debates over the health and environmental consequences of genetically modified organisms.

The Institute of Management Accountants has published a Code of Ethics that governs behavior for members of the profession. Assume that you are a CMA and member of the institute.

I. COMPETENCE

1. Maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills.

2. Perform professional duties in accordance with relevant laws, regulations, and technical standards.

3. Provide decision support information and recommendations that are accurate, clear, concise, and timely. Recognize and help manage risk.

II. CONFIDENTIALITY

1. Keep information confidential except when disclosure is authorized or legally required.

2. Inform all relevant parties regarding appropriate use of confidential information. Monitor to ensure compliance.

3. Refrain from using confidential information for unethical or illegal advantage.

III. INTEGRITY

1. Mitigate actual conflicts of interest. Regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts of interest.

2. Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

3. Abstain from engaging in or supporting any activity that might discredit the profession.

4. Contribute to a positive ethical culture and place integrity of the profession above personal interests.

IV. CREDIBILITY

1. Communicate information fairly and objectively.

2. Provide all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.

3. Report any delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.

4. Communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

Assignment:

Compose an essay analyzing the ethical issues you face as the chief of operations. In the essay, identify at least three specific IMA Code of Ethics standards that are potentially being violated if you choose to do nothing in response to learning the aforementioned information (at least one of these must come from an area other than section III.) Next, identify at least two courses of action that you could take to remedy any potential ethical issues.