REDSTONE COMPTECH ANALYTIKS

Aleeyah Watlington-Smith is a Cost Analyst for Redstone CompTech, a technology research company located in Phoenix, Arizona. One of her responsibilities is to make future research cost projections. Back in September 2017, Aleeyah made a highly favorable projection of costs for the next 8 years for Redstones new generation computer, LIFETIMETECHIE. Aleeyah presented the projections to the R&D Group who decided to expand research and development of the computer. This decision led to dislocations of some plant personnel who were reassigned to one of the companys newest plants in Lansing, Michigan. Fortunately, no employees were terminated. In fact, an additional 125 people were hired at the new Michigan facility.

Last week, on May 31^st, Aleeyah rechecked her computations on the cost projections. Unexpectedly she found that he had made an error that would increase her cost projections substantially. It is very fortunate, however, that costs of LIFETIMETECHIE computers had NOT yet exceeded previous cost projections and management is very pleased with the decision to expand research and development on the project.

Aleeyah is not sure what to do now. She wonders if she should confess her honest mistake and possibly jeopardize any possible promotions she might be granted. She reasons that no one will catch the error because the cost of LIFETIMETECHIE had not greatly exceeded projections to date. Whats more interesting is that it appears that costs will materialize close to the projections.

Write a memo to Aleeyah Watlington-Smith. Address the following questions about which Ms. Watlington-Smith has concerns:

1. Who are the stakeholders in this situations and what are the potential risks associated with each?

2. Identify the ethical issues involved in this situations.

3. What are the possible alternative actions for Aleeyah?

4. What do you recommend that Aleeyah should do?