“Damn the new IFRS regulations!” exclaimed George Lindsay, director of operations for Dowell Corporation. The corporate office recently decided to include “Cash flow from operations” as an additional performance metric to evaluate George. Included in the determination of this number were cash dividends paid out to shareholders and interest.

“As if managing everything that I have to is not hard enough, they now hold me accountable for a number that I cannot control anymore due to changes in accounting standards.” George believed that he had to find new ways to manage the cash flow number. “Should it come from R&D, training, quality management, or maintenance?” he asked himself.

Required:

Discuss any ethical issues pertaining to the situation.