Navigating Ethical Dilemmas in Corporate Finance

737 Words2 Pages
bulb-icon

Recommended: Intricacies of ethics

Ethical Dilemma #1
Lincoln is an accounting manager at a manufacturing company, Octavia is the financial supervisor and Finn is the finance director. Lincoln and Octavia report back to Finn on the day-to-day financial activities of the company. One day at work, you overhear Octavia saying she has not been revealing some important information to the external auditors. Information you know is about the recent purchase of a large piece of machinery becoming useless and has little value if resold. Lincoln does not know whether to believe what he has overheard. In addition, Lincoln has also heard from another source that there was a bribe paid to an oversea company to secure a sales contract. He feels uneasy abut the situations, and is left in a …show more content…

Once he has found the necessary information to back himself up, he should bring this information upon the finance director, Finn. As well he should find any one else who also knows about this situation or find out others who are apart of this situation.

If Lincoln is uncomfortable bring this issue to Finn because he knows Finn and Octavia have a close relationship, it might be best to bring this issue to the board of directors as another alternative. As for the alleged bribe taken place in the company, Lincoln could report this to the authorities.

Ethical Dilemma …show more content…

Elijah (Head of Finance)
2. The CEO and board of directors
3. The employees who affected because the contract with Organization B failed.
4. The company

Solution:
The use of internal information from a previous employer’s organization used to benefit of your current employer’s company is prohibited. But if Elijah used the information from Organization B from a public domain or have simply gain experience from Organization B, this would not mean he would be breaching confidentiality of his previous employer. As long as Elijah does not exposed confidential information of Organization B then it is fine. This dilemma should be discussed honestly with the CEO, he may ask for his part in the team to be limited, like contribute his opinion and knowledge, but not his knowledge on specifically Organization B. Another alternative is if Elijah is not comfortable with being apart of this team at all, he can refuse having any part in the preparation of bidding for this contract. If the CEO fails to understand Elijah’s position and pushes him to share confidential information of Organization B it may be wise to that this situation to the board of

Show More
Related

  • Maple Leaf Shoe Case Study

    735 Words  | 2 Pages

    According to the case the problem that needs to be taken care of first is regarding Paul Bertuzzi warehouse supervisor at the Winnipeg facility. Paul on his training met two other supervisors of different locations who revealed to him a moneymaking scheme of selling the company’s latest shoe designs and production techniques to an overseas shoe manufacturer in return for part-ownership in the business. An auditor of the company discovered about scheme of two warehouse supervisors of other facilities and they were fired. Paul and an employee admitted to be aware of this scheme. This problem is very important to be solved as it is related to the company’s confidential information. The manager needs to look deeply into the problem to find out whether they actually had given any information or they just planned about this scheme. Because in case the information has been leaked the company may have to face disastrous problems as the overseas manufacturer may produce and sell the products at cheaper rates than their company, due to which they may have to plan some new ideas to solve the future problem

    Read More

  • Essay On Adelphia Scandal

    776 Words  | 2 Pages

    The first blatant ethical issue in the Adelphia scandal stems from the idea that the Rigas family used corporate money for personal use. Nearly $12.8 billion was used to start construction on a personal golf course on their own private land and even more to cover the expenses of the use of the company aircraft for personal reasons. The use of this money was then hidden thro...

    Read More

  • Business Case Study: The Wisson Company Policy

    1496 Words  | 3 Pages

    The Wisson company policy stated “Personal payments, bribes or kickbacks to customers or suppliers or the receipt of kickbacks, bribes or personal payments by employees are absolutely prohibited”. (p.564) Dealing with employee ethics company policy this is where I would clearly start first. I have found during the course of this case study several facts that Valerie Young was faced with. While going to make photocopies she discovered her bosses personal companies document revealing commissioning and fees totaling $35,000 per month. Valerie also struggled with revealing her discovery with corporate headquarters, while justifying her own values to protect herself and fellow colleagues. Lionel Waters’ personal greed leads to wrongful business

    Read More

  • Rogue Bank Case Study

    1362 Words  | 3 Pages

    Svoboda and Robles both broke the misappropriation and tripper (tippee) theory. In Bailey article, he mentions that the misappropriation theory requires courts to focus on whether a fiduciary relationship, or similar relationship with a "duty of trust or confidence," exists (2010, p.541), and tripper theory obtains an individual who received confidential information from the insider individual. Svoboda and Robles violated the fiduciary duties which are the duty of loyalty and care. When Svoboda brought in an outsider, Alena, to complete the task, he broke the duty of loyalty and care toward his company, but then was disloyal to Robles when Svoboda prepared his own trade security. Under Section 10b and rule 10b-5, if an individual using confidential information and then assist another individual, the individual is liable for the trading of the confidential information if they are aware of the fiduciary duties. As a tippee, Robles was liable for trade securities because he was aware of the policy of the Rogue Bank. Bailey (2010) provides an example regard to the SEC v. Texas Gulph Sulfur, when the Second Circuit held that an investor is prohibited from using non-public information to his advantage, regardless of how the investor received the information and the explanation for this situation was to ensure all investors were provided with equal

    Read More

  • Allegiance Commercial Real Estate Services

    1656 Words  | 4 Pages

    Hypothetical situation, an individual who works at Allegiance Commercial Real Estate Services overhears a conversation. A female executive assistant confides to her friend that her boss, who is the Designated Broker for the company, intends to manipulate the new real estate listings, with the company over the next 90 days to insure that he can take them with him without legal liability when he resigns and opens his own commercial real estate company. For the hypothetical situation, I will add names. The individual who is at the center of the case will be name Linda. A female executive assistant, Jessica, tells Linda that designated broker for the company, Stanley, plans to manipulate the new real estate listings to ensure that he can take them with him without legal liability. Stanley is currently Linda and Jessica's boss at the firm. Stanley is planning to resign and open his own real estate company. In fact, he had already promised Linda a position as senior executive assistant at the place he plans to open. Linda did know about the impending move. However, the information regarding the manipulation of listings is news. How might Linda react to the new information?

    Read More

  • Ethics Case Study

    818 Words  | 2 Pages

    Luke is part of a project that involves developing land recently bought by ABC company to build an adult entertainment retail store. Luke’s brother, Owen lives in the same neighborhood that this land is located. When the plans for the store become public the value of homes in Owen’s neighborhood are expected to declined. Luke knows his brother is thinking about selling his house. Owen has mentioned, he has reserves about even putting his home on the market for sale

    Read More

  • Target CEO Breach Case Study

    212 Words  | 1 Pages

    Mr. Steinhafel begins holding twice-daily status meetings, providing tips on how to monitor their accounts, promised zero liability, offer a new technology defenseless to fraud. Consequently, essential information, that the money making managers could have passed on. Some people may be understanding if the pieces of information, on how highly technical and sophisticated the breach may affect any organization at any time. I believe and telling the employees and customers how valuable they are to the

    Read More

  • Ethical Scandas And Cons Of Sploying By David G. Friehling

    1634 Words  | 4 Pages

    In today’s business world, accountants and business owners should work together in order to become aware of scandals that occur in corporate companies. Since 2008 a series of corporate scandals and collapses have highlighted the importance of effective board oversight. With the increase in technological advances and people who never invested before, began to invest in companies in the mid 1990’s to early 2000, which increased the demands for many corporate organizations. One of the largest scandals in the corporate world was known as the Madoff’s Ponzi scheme and the scandals that occurred at Enron Corporation and WorldCom.

    Read More

  • Identifying and Preventing Employee Fraud at Plutonium

    1223 Words  | 3 Pages

    In reviewing the recent scenario at Plutonium, there appears to be a number of pressures that could make the employee Chris potentially commit fraud. The opportunities that exist to commit fraud by Chris will also be looked at. Some of the rationalizations that Chris may have for committing fraud will also be explored. A look at some of the symptoms that show fraudulent activity may indeed be going on with Chris will be evaluated. Will also be looked at with Chris’s supervisor, Jonathan, could and possibly should have done to eliminate some or all of the opportunities by his staff at Plutonium to commit fraud.

    Read More

  • Trolley Dodgers Case Study

    1006 Words  | 3 Pages

    As you are aware, my team and I have been auditing the payroll functions of The Trolley Dodgers. During our audit, we were introduced to Edward Campos, the payroll chief of the organization. Mr. Campos has been with the Dodgers organization for many years, beginning in an entry-level accounting position. I was told personally that Mr. Campos is a seemingly perfect example of an expert within the organization. He designed and implemented the payroll system, part of the overall payroll function audit we are undertaking. I bring Mr. Campos to your attention due to recent fraudulent activities that we have discovered though the audit that trace back to him. You will recall that my team was called upon to conduct the audit after the controller

    Read More

  • Case: Ethical Dilemma

    1098 Words  | 3 Pages

    In the following case, Luke is involved in a very perplexing conflict, or Ethical dilemma. This situation is an Ethical dilemma, and not just a regular “everyday” problem, because to Luke there might not be an obvious answer. He can also be thinking that both choices, keeping his commitments of confidentiality and telling his brother, Owen, are both correct things to do. If Luke tells his brother about the project, then he might concur with a theory known as Breach of confidentiality. “Breach of confidentiality occurs when someone gives away information that was supposed to be kept private.” (GENB4350 Online Lecture, Ethical Reasoning 1). By Luke breaching information that is supposed to be kept secret, he will betray the trust of his company

    Read More

  • Case Analysis Of Tyco

    1200 Words  | 3 Pages

    In conclusion, this case described a company that started out very strong, but as soon as they seen a decline in stock prices they fell apart. When the stock prices fell the CEO, Kozlowski started making poor choices, such as falsifying financial information and stealing from the business. From my observation, companies that give out large bonuses for reached goals find themselves fighting with executives that put their morals aside for

    Read More

  • Tyco Case Study

    2321 Words  | 5 Pages

    The Tyco accounting scandal is an ideal illustration of how individuals who hold key positions in an organization are able to manipulate accounting practices and financial reports for personal gain. The few key individuals involved in the Tyco Scandal (CEO Kozlowski and CFO Swartz), used a number of clever and unique tactics in order to accomplish what they did; including spring loading, manipulating their ‘key-employee loan’ program, and multiple ‘hush money’ payouts.

    Read More

  • Ethical Dilemma Case Study

    1453 Words  | 3 Pages

    According to the scenario, Jacob and Krystal worked in an ad agency that started five years ago in Topeka, Kansas. The ad agency was barely making a profit and needed a large client, which led the agency to put in a bid for a city government contract. Due to Jacob’s son being sick, he was preoccupied with taking care of his son and left Krystal with most of the work. Krystal prepared the presentation and got with Jacob the day before the final meeting with the client. Krystal knew that Jacob has good speaking skills and they both decided that Jacob would do the presentation. Jacob’s presentation was a success and they successfully sealed the contract. The owners of the company were so impressed and gave Jacob a bonus check of $10,000. Jacob saw this opportunity where he could use the money for his son’s medical bills. However, he knew that Krystal did most of the work and deserved the bonus money. Jacob is disappointed and his situation has left him with a decision on what to do with the money. This case study will pinpoint Jacob’s ethical dilemma and what ethical action he should take. Also, the roles and responsibilities of an employee dealing with an ethical situation as well as the ways of an organization to maintain ethical practices in the workplace

    Read More

  • Whos The Boss?

    1226 Words  | 3 Pages

    The relationship between one of the employees, Shelly Levene, and his employer, John Williamson, reflects this abnormal relationship. Williamson is the boss, or manager of this particular branch of a real estate company, he does however have two bosses, Mitch and Murray. The play begins with Williamson making an announcement regarding the jobs of all of the employees in the office. There is a contest beginning to see who could close the most deals. Whoever won would win a car and whoever lost would be fired. In the following conversation between Williamson and Levene, the two are discussing whom the good leads are going to. Levene has told Williamson that without the good leads he will not be able to close, in which case, he will be fired. Williamson has said that he has to give the leads to the closers and that Levene has not been a closer. I pick up the conversation after many pages of arguments, Williamson agreeing to Shelly’s bribe and right when Shelly is asking for two leads.

    Read More

More about Navigating Ethical Dilemmas in Corporate Finance

Open Document