Question 4

Use the ethical decision-making model below or another that you know of to discuss ONE (1) of the following ethical dilemmas:

Question a.

Imagine you are working as an accountant for a small company, and are in charge of all accounting functions of this company. It is company policy that if the company achieves 10% profit growth, all employees get a 2% cash bonus. If the company meets this target, you are entitled to $30,000, and the CEO will get $50,000 as a bonus. No bonuses will be awarded if the company does not achieve the targeted profit growth.

The CEO and you review the financial results before finalising the accounts and realise that the company's profit growth is 9.5% for the year. Due to the Covid-19 pandemic, some of the company's customers have been badly impacted, and you are certain that for two of your major customers, the amount due cannot be recovered. If you do not account for these impacts, the company could reach the bonus target. The CEO asks you not to write off these two customers' account balances and calculate the provision for doubtful receivables as usual without taking the Covid-19 impact into account. The CEO is your immediate boss and has a good relationship with the board of directors.

How do you think this situation should be handled?

An ethical decision making framework using Utilitarian and Rights Theories

Identify the ethical issue(s).

Determine the affected parties and identify their rights. .

-Determine the most important rights.

. Develop alternative courses of action.

- Determine the likely consequences of each proposed course of action.

Assess possible consequences including an estimation of the greatest good for the greatest number. . Determine whether the rights framework would cause any action to be eliminated.

Decide on an appropriate course of action.