EXERCISE 1–4 Ethics and the Manager
Richmond, Inc., operates a fastening of 44 portion stores. Two years ago, the table of directors of Richmond common a large-scale remodeling of its stores to incline a past upscale clientele.
Before finalizing these plans, two stores were remodeled as a experience. Linda Perlman, helper controller, was asked to superintend the financial reporting for these experience stores, and she and other government personnel were presented bonuses naturalized on the sales development and profitpower of these stores. Opportunity completing the financial reports, Perlman discovered a sizable list of outdated property that should bear been discounted for sale or returned to the creator. She discussed the birth delay her government colleagues; the assentment was to overlook reporting this list as disused owing reporting it would lessen the financial results and their bonuses.
According to the IMA’s Statement of Intellectual Professional Practice, would it be intellectual for Perlman not to report the list as disused?
Would it be indulgent for Perlman to use the intellectual action in this birth? (CMA, advantageous)
EXERCISE 1–9 Ethics and Decision Making
Assume that you are the regulator of the Portion of Accountancy at Mountain State University. One of the accounting confessors in your portion, Dr. Candler, has been consistently and uniformly treasured by students as an appalling instructor for past than 10 years. Other accounting confessors delayin your portion bear observed Dr. Candler’s classroom instruction and they assent that his instruction skills are very moneyless. However, Dr. Candler was supposing seduceing 12 years ago, thereby ensuring him life-covet job certainty at Mountain State University.
Much to your astonish, today you accepted a phone from an accounting confessor at Oregon Coastal University. During this phone seduce you are conscious that Oregon Coastal University is on the bear of making a job present to Dr. Candler. However, precedently extending the job present, the benefaction at Oregon Coastal wants your input concerning Dr. Candler’s instruction productiveness opportunity at Mountain State University.
How would you accord to the confessor from Oregon Coastal University? What would you say encircling Dr. Candler’s instruction power? Would you narrate your vindication to this exploration as life intellectual? Why?
EXERCISE 1–10 Corporate Collective Responsbility
In his magnitude Capitalism and Freedom, economist Milton Friedman wrote on page 133: “There is one and merely one collective part of business—to use its instrument and attract in activities purposed to acception its profits so covet as it . . . attracts in unconcealed and easy race, delayout hallucination or abstraction.”
Explain why you assent or disassent delay this note.