For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility).
1. Chris overhears a subordinate at a mutual friend’s party tell others about a confidential deal with a supplier to get raw materials for a price lower than market price. Chris does not do anything about the subordinate’s indiscrete conversation.
2. Maxwell pays a Mexican official a bribe of $ 50,000 to allow the company to locate a factory in that jurisdiction so that the company can take advantage of the cheaper labor costs. Without the bribe, the factory cannot be located in that location.
3. There is a failure in the company’s backup system after a system crash. Month- end reports will be delayed. Mark, the manager of the division experiencing the system failure, does not report this upcoming delay to anyone since he does not want to be the bearer of bad news.
4. To reduce the company’s tax bill, Jillian uses total cost to value inventory instead of using product cost as required by law.
5. Since Michael works in the accounting department, he is aware that profits are going to fall short of analysts’ projections. He tells his father to sell stock in the company before the earnings release date.