Janet Segato is division controller and Tom Maloney is division manager of the Sports Shoe Company. Segato has line responsibility to Maloney, but she also has staff responsibility to the company controller. Maloney is under severe pressure to achieve budgeted division income for the year. He has asked Segato to book $240,000 of sales on December 31. The customers’ orders are firm, but the shoes are still in the production process. They will be shipped on or about January 4.
Maloney said to Segato, “The key event is getting the sales order, not shipping the shoes. You should support me, not obstruct my reaching division goals.”
REQUIRED
1. Describe Segato’s ethical responsibilities.
2. What should Segato do if Maloney gives her a direct order to book the sales?