Write a memo to adders ethical issue Ethical Issues

"Maria, do you have a minute?" Josey asked the COO aer stopping her in the hall.

"If it's quick, I do. I'm on my way to a meeting in a few minutes with the rest of the

executive team."

"I'll only take a minute. I've been going through the numbers your team gave me

about the new line," Josey said as they slipped into an alcove in the lobby, out of the

foot trac of Wedgewood's main oces.

"Is there a problem?" Maria asked, a little concerned.

"I don't know. at's why I thought I'd ask. I went down to the oor the other day to

do a spot check on some inventory. I noticed that the ending inventory is still pretty

rough."

Maria smiled. "Well, we're moving as fast as we can, but we can't work miracles, even

with a new line that is making TONS of money."

"at's not it. How fast you move is none of my business. My concern is that it was

reported as being 74% completed for DM and 26% completed for conversion costs.

But it doesn't look like it's that far along. I mean, to me it looked only about 50% done

with materials and 5 or 6% done with conversion. Am I missing something?"

"Probably, but I see your point." Maria glanced up and down the hall. "Look, sometimes

line managers are a little ... generous with their estimates of how far along they are in

production. It makes them look better, and it gives us better numbers. Because none

of them really exaggerate too much, I usually look the other way. I mean, the eects,

as far as I can tell, are minimal on the nancial statements. Because it doesn't really

change anything, I just let it go."

"But.... "

"Josey, I already know about it, and I don't think that it's a big deal, okay? these are my managers, my area. You need to let me handle it. It's my call. Now," Maria continued

before Josey could say anything else. "I have to get to my meeting, or I'll be late. Call

me sometime, and we'll do lunch."