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Activity C: ESSAY. Read The Case and Answer Fully The Questions To Get Full Points (20 Points)

Carla noticed her boss Jack was acting strangely after being denied a promotion he felt he deserved after 17 years of working long hours. Six months later, Carla discovered Jack copying company software and doing side consulting work in potential conflict with his employer. Carla confronted Jack about the ethical issues but he defended his actions. Carla was unsure how to proceed as reporting Jack could negatively impact her own career but ignoring the situation troubled her ethics as well.

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Gellie Buenaventura
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372 views

Activity C: ESSAY. Read The Case and Answer Fully The Questions To Get Full Points (20 Points)

Carla noticed her boss Jack was acting strangely after being denied a promotion he felt he deserved after 17 years of working long hours. Six months later, Carla discovered Jack copying company software and doing side consulting work in potential conflict with his employer. Carla confronted Jack about the ethical issues but he defended his actions. Carla was unsure how to proceed as reporting Jack could negatively impact her own career but ignoring the situation troubled her ethics as well.

Uploaded by

Gellie Buenaventura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS, and FINANCE

Governance, Business Ethics, Risk Management and Internal Control

ACTIVITY C
NAME : DATE :
SECTION : SCORE :

ESSAY. Read the case and answer fully the questions to get full points (20 points)

AN ETHICAL DILEMMA

(Ethical Decision Making for Business; John Fraedrich, O. C. Ferrel and Linda Ferrel; 8th Edition; 2012)

Carla knew something was wrong when Jack got back to his desk.  He had been with Aker & Aker
Accounting (A&A) for 17 years, starting there right after graduation and progressing through the
ranks.  Jack was a strong supporter of the company, and that was why Carla had been assigned to
him.  Carla had been with A&A for two years.  She graduated top ten of her class and passed the
CPA exam on the first try.  She had chosen A&A over one of the "Big Four" firms because A&A
was the biggest and best firm in Smallville, Ohio, where her husband, Frank, managed a locally
owned machine tools company.  She and Frank had just purchased a new home when things started
to turn strange with Jack, her boss.

"What's the matter, Jack?" Carla asked.

"Well, you'll hear about it sooner or later.  I've been denied a partner's position.  Can you imagine
that?  I have worked 60- and 70- hour weeks for the last 10 years, and all that management can say
to me is 'not at this time,'" complained Jack.

Carla asked, "So what else did they say?"

Jack turned red and blurted out, "They said maybe in a few more years.  I've done all that they've
asked me to do.  I've sacrificed a lot, and now they say a few more years.  It's not fair!"

"What are you going to do?" Carla asked.

"I don't know," Jack said.  "I just don't know."

Six months later, Carla noticed that Jack was behaving oddly.  He came in late and left early.  One
Sunday, Carla went into the office for some files and found jack copying some of the software that
A&A used in auditing and consulting.  A couple of weeks later, at a dinner party, Carla overheard a
conversation about Jack doing consulting work for some small firms.  Monday morning, she asked
him if what she had heard was true.

Jack responded, "Yes, Carla, it's true.  I have a few clients that I do work for on occasion."  

"Don't you think there is a conflict of interest between you and A&A?" asked Carla.

"No," said Jack.  "You see, these clients are not technically within the market area of A&A. 
Besides, I was counting on that promotion to help pay some extra bills.  My oldest son decided to
go to a private university, which is an extra $25,000 each year.  Plus our medical plan at A&A does
not cover some of my medical problems.  And you don't want to know the cost.  The only way I
can afford to pay these things is to do some extra work on the side.
"But what if A&A finds out?" Carla asked.  "Won't they terminate you?"

"I don't want to think about that.  Besides, if they don't find out for another six months, I may be
able to start my own company."

"How?" asked Carla.

"Don't be naive, Carla.  You came in that Sunday.  You know."

Carla realized that Jack had been using A&A software for his own gain.  "That's stealing!" she said.

"Stealing?" Jack's voice grew calm.  "Like when you use the office phones for personal long-
distance calls?  Like when you decided to volunteer to help out your church and copied all those
things for them on the company machine?  If I'm stealing, you're a thief as well.  But let's not get
into this discussion.  I'm not hurting A&A and, who knows, maybe within the next year I'll become
a partner and can quit my night job."

Carla backed off from the discussion and said nothing more.  She couldn't afford to antagonize her
boss and risk bad performance ratings.  She and Frank had bills too.  She also knew that she
wouldn't be able to get another job at the same pay if she quit.  Moving to another town was not an
option because of Frank's business.  She had no physical evidence to take to the partners, which
meant that it would be her word against Jacks, and he had 17 years of experience with the
company.

QUESTIONS:

1. Identify the ethical issues in this case. (5 points)


The Ethical issue, in this case, was Jack was stealing the company’s software by copying
for personal benefits. While Carla, taking her advantage as an employee by using phone
calls for personal use. As to Carla instead, she whistleblower it because she knew about
what Jack was doing she support it even though it was wrong.
2. Assume you are Carla. Discuss your options and what the consequences of each option
might be. (5 points)
If I am Carla I would act by collecting evidence such as CCTV and a record about what
Jack confess to me by that I am going to the partners and discuss about this matter and
prove that Jack was guilty by stealing and using the firm’s software. My other option is too
be quiet about the whole thing or quitting the job because I don’t want to see this kind of
unethical stuff even though I am unethical in my part too.
3. Assume you are Jack. Discuss your options. (5 points)
If I am Jack, I would ask them to increase my salary by demanding it because in seventeen
years I devoted myself to the firm and if they don’t want to increase my salary maybe it’s
time for me to find a job that can satisfy me and acknowledge me or have sideline jobs
such as call center, professor, small store/ business, etc.
4. Discuss any additional information you might need before making your decision. (5 points)
In my everyday life before I do something I always think if it is
good or bad. In this case, before making a decision make sure to
have hard evidence before exposing or pointing a person because
maybe you just misinterpret what he/she doing, and exposing
might get a huge impact on his/her work. Carla can get a piece of
evidence such previous client of Jack that can support her claims
about Jack. Also, before doing this kind of activity maybe I can
ask the Partners why they didn't promote Jack. Maybe there is
something that Jack must have, to be promoted. If they can say
what Jacks incapable of, I can give Jack a piece of advice about
what he needs to focus or learn and tell him “It’s not too late to
change what you are doing now”.

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