Question$)$ Discuss the ethical issues raised by all the positions of all directors. How should the various directors attempt to resolve such issues? Your answers should draw on relevant academic and practitioner literature.

The members of the Board of Essex Control Systems Ltd are engaged in an intense debate about

ethical issues arising in management control at the company.

The Managing Director does not believe there is a conflict between pursuing profits and corporate

social responsibility $($ie doing good$).$ This is because, even to survive, business organizations must

look after all key stakeholders.

The Marketing Director adds to the point by arguing that companies can have strategies to better al

their operations with ethical principles $-$ trying to convince their stakeholders to support such

strategies.

The Finance Director suggests that the key thing is to follow professional ethical codes.

The Operations Director sees two key ethical issues that need to be addressed: a problem of

budgetary slack in the budgeting system; a problem of not challenging flawed control indicators.