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Posted: July 25th, 2022
Consider the following scenario between Dave, a printer, and Steve, an assistant
1. Consider
the following scenario between Dave, a printer, and Steve, an assistant in the
local university's athletic department.
Steve:
Dave,
our department needs to have 10,000 posters printed for the basketball team for
next year. Here's the mock-up, and we'll need them in a month. How much will
you charge?
Dave:
Well,
given the costs I have for ink and paper, I can come in at around $5,000.
Steve:
Great,
here's what I want you to do. Print me up an invoice for $7,500. That's our
budget. Then, when they pay you, you give me a check for $2,500. I'll make sure
that you get the job.
Conceptual
Connection: Is Steve's proposal ethical? Yes OR No?2. What
should Dave do?
The Bedron
Company is a closely held investment service group that has been quite successful
over the past 5 years, consistently providing most members of the top
management group with 50% bonuses. In addition, both the chief financial
officer and the chief executive officer have received 100% bonuses. Bedron
expects this trend to continue.
Recently,
Bedron's top management group, which holds 35% of the outstanding shares of
common stock, has learned that a major corporation is interested in acquiring
Bedron. The other corporation's initial offer is attractive and is several
dollars per share higher than Bedron's current share price. One member of
management told a group of employees under him about the potential offer. He
suggested that they might want to purchase more Bedron stock at the current
price in anticipation of the takeover offer.
3. Conceptual Connection: Do you
think that the employees should take the action suggested by their boss? Yes OR
No?
4. Suppose the action is prohibited
by Bedron's code of ethics. Now suppose that it is not prohibited by Bedron's
code of ethics. Is the action acceptable in that case?Yes OR No?
5.The chief accounting officer for a
firm is thea. Chief Executive Officer.b. Chief Operating Officer.c. Controller.d. Chief Risk Officer.e. Production Head.
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