Heres the problem: an interior decorators bid is broken down into two parts (A) the decorators services
Question:
Here’s the problem: an interior decorator’s bid is broken down into two parts (A) the decorator’s services and (B) the cost of labor and supplies. Most customers think (B) is a fixed cost-they forget it’s not the decorator’s fault if cabinetmakers charge an arm and a leg. So, where do customers look closest when comparing costs? That’s right, (A) the decorator’s fee.
Well, decorators are creative people and for years they’ve been doing some very creative bidding. They’ve been lowballing (A) and padding (B), expecting laborers to kick back a percentage of their inflated fees to the decorator. Surprised? Everyone’s doing it. Everyone, that is, except me. It’s deceptive. As a Christian, I think it’s just plain wrong.
The customer’s final cost is about the same either way you cut it, so most decorators don’t feel they’re doing anything wrong. Are they right? Needless to say, “blowing the whistle” on such a
the widespread and accepted practice would only damage my professional reputation.
1. Mrs.G. C. confronts a third-party obligation. What is it?
2. Ethics can be weaponized—that is, used in your personal interest. Show how this could be the case here. Does the fact that she would benefit by getting these kickbacks eliminated somehow make her position less morally respectable? Why or why not?
3. Typically, according to Mrs. G. C, a client contracts an interior decorator. Later that decorator hires a laborer, and the laborer gives the designer a kickback. There’s a conflict of interest here, what is it? What is the ethical case against this kickback scheme?
4. Consequence theories of ethics represent the point of view that acts themselves are not good or bad; all that matters are the consequences. Therefore, lying isn’t bad if it means a fleeing criminal is asking you which way is the best escape route, and you point him down the street leading to the police station. Duty theorists, by contrast, believe that certain acts including lying and stealing are wrong regardless of the context and consequences.
o Do you suppose Mrs. G. C. adheres to consequence ethics or duty ethics? Why?
o Could you use the idea of consequence ethics to try to convince her to simply join the crowd and do what everyone else is doing? What would that case look like?
5. If you wanted to put an end to this pervasive kickback practice in the interior decorating world and only had time to present one argument, which of the following would you choose?
o The practice should be stopped because it involves unethical kickbacks.
o It should be stopped because it’s dishonest in the sense that consumers are misled.
o It should be stopped because the straight shooter is getting the shaft.
o Why did you choose that argument and how could it be elaborated more fully?
6. Imagine that Mrs. G. C. from Miami reveals her name and makes a whistle-blowing cause out of her unhappiness with the standard practice in her profession.
o What kind of reprisals and negative effects might she expect?
o Do you believe whistle-blowing is justified in this situation? Why or why not?
o Is it required? Why or why not?
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan