A paragraph should be written for each of the three steps in determining an ethical situation with emphasis on the final step/paragraph. Be sure to use APA guidelines for citing references
1. recognize an ethical situation and the ethical issues involved 2 identify and analyze the principal elements in the situation 3 identify the alternatives and weigh the impact of each alternative on various stakeholders
.Lauren Smith is the controller for Sports Central, a chain of sporting goods stores. She has been asked to recommend a site for a new store. Lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. Lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. Therefore, Lauren recommended locating the new store in her uncle’s shopping plaza. In making her recommendation to management, she did not disclose that her uncle owns the shopping plaza.
John Jones is the chief accountant for the Southwest district office of Security Life Insurance Company. While preparing the fourth-quarter sales report, John overheard the company president say that he would close Security’s Phoenix office if it did not meet its fourth-quarter sales quota. John’s best friend from college works at the Phoenix office.
Anxious to find out whether the office was in jeopardy, John immediately finished the Phoenix office’s report, only to find that it showed sales 25% below the quota. Later that afternoon, the company president called John for Phoenix’s sales results. John told the president that he had not finished preparing the sales report for the Phoenix office. John wanted time to compile data that might convince the president to continue operations in Phoenix, despite lagging sales.
Ethics Discussion # 3
Tech-Smart Computer Company recently discovered a defect in the hard disks installed in its model R24 computer. The hard disk head in these units retracts too violently whenever the computers are turned off. As a result, the hard disks are destroyed after the computer is turned on and off approximately 500 times. Tech-Smart has sold 4,000 model R24 computers nationwide.
The marketing department at Tech-Smart contacted most of the 4,000 owners of the model R24 computer and discovered that 20% (or 800) use their computers in businesses that operate 24 hours per day. These customers never turn their computers off; therefore, the defect should not damage their hard disk units.
Judy Govan, Tech-Smart’s controller, has been asked to determine the cost to correct the hard disk problem and recommend a course of action. After studying the marketing department’s report, Judy decides to recommend that Tech-Smart replace the hard drives only in the 3,200 units used by customers who actually turn their computers off.