Case Study Data Background Cogworks Manufacturing Company is a medium-sized manufacturing firm that specializes in producing automotive parts. The company operates in a competitive industry, and its profitability is closely monitored by both internal management and external stakeholders. Cogworks's production process generates hazardous waste, and the company must comply with strict environmental regulations. John, the manager of the cost accounting department, faces a significant ethical dilemma. John's Cost Savings Plan John has discovered a way to reduce Cogworks Manufacturing's reported hazardous waste disposal costs significantly. By incorrectly categorizing some hazardous waste materials as non-hazardous, the company would save a substantial amount of money. These cost savings could potentially improve the company's financial performance and profitability, aligning with the CEO's objectives. 1. Current Hazardous Waste Disposal Costs: o As per the accurate accounting and environmental compliance records, the company's current annual hazardous waste disposal costs amount to $500,000. 2. John's Proposal: o John's proposal suggests misclassifying a portion of the hazardous waste materials as non-hazardous. If implemented, this action would reduce the reported hazardous waste disposal costs by 50%, resulting in a cost reduction of $250,000. 3. Financial Impact on Cogworks Manufacturing: o The company's current net profit before considering the proposed cost reduction is $1,000,000. o If John's proposal is implemented, the reported net profit would increase to $1,250,000 due to the reduced disposal costs. o The proposed action could lead to a positive financial impact and contribute to achieving the CEO's goal of increasing profitability. About the Characters and their Motivations John - Manager of the Cost Accounting Department: John is an experienced accountant who has been with Cogworks Manufacturing for over a decade. He is responsible for overseeing cost accounting, budgeting, and financial reporting for the company. John is known for his dedication to the organization and his desire to maximize cost savings and profitability. John is motivated by a desire to demonstrate his value to the company and help achieve cost savings and increased profitability, which could lead to recognition and career advancement. Sarah - Environmental Compliance Officer: Sarah is the Environmental Compliance Officer at Cogworks Manufacturing. Her role involves ensuring that the company adheres to all environmental regulations and manages hazardous waste properly. She is committed to environmental sustainability and protecting the community. Sarah is motivated by her commitment to environmental sustainability and ensuring that Cogworks Manufacturing complies with all applicable laws and regulations. Robert - CEO of Cogworks Manufacturing: Robert is the CEQ of Cogworks Manufacturing. He is under pressure from the company's board of directors to increase profitability and reduce costs to stay competitive in the market. Robert is aware of John's cost-cutting efforts and is supportive of them. Robert is motivated by the need to meet the board's financial targets and improve the company's overall financial health. . Analyze the case study and independently identify the ethical dilemmas present in the scenario, considering the perspectives of John, Sarah, and Robert. . Apply ethical principles and relevant ethical frameworks (e.g., utilitarianism, deontology) to evaluate John's proposed actions. . Provide a well-reasoned argument for or against John's proposed actions, supported by ethical reasoning and accounting principles. . Suggest an alternative course of action that adheres to ethical standards and managerial accounting practices