Week 3 Assignment

Ethical Challenges and Agency Issues

Ethical Challenges and Agency Issues

Ethics concerns the human behavior that is either right or wrong based on conventional morality. General ethical norms encompass truthfulness, honesty, integrity, respect for others, fairness, and justice. The level of executive pay and timely reporting of budget problems are the two-case studies that are analyzed below. The ethical issues impacting decision making processes deal with identifying ethical problems as they arise, exploring alternatives, clarifying and applying ethical values, and ongoing improvements. This paper will outline the ethical challenges faced as well as the agency issues discussed in the case studies and will explain how several Acts were reactions to financial crises arising from similar challenges.

Ethical Challenges and Agency Issues

The case study, Timely Reporting of Budget, examines the ethical challenges as well as agency issues that can result from a project going over budget. These ethical issues and agency issues from this article are examined in detail. The most prominent ethical issue within this case study involves the timely communication of information pertaining to the budget. From the agent’s perspective, an over budget project is a direct failure by the agent to have either assessed the project correctly at the origin of the project or to simply not have the correct experience or knowledge to complete the project on time. Providing this information to the client can result in a negative impression of the agent; therefore the agent the ethical dilemma of communicating the issue timely.

Professionally, the agent wishes to find ways in which the project can be completed within budget or at least minimize the impact of being over budget. However, ethically, the agent has an obligation to the client to make the client aware of the current issue so that not only is the client able to understand the situation, but...