Submitted by: Submitted by shellinatorex
Views: 389
Words: 375
Pages: 2
Category: Business and Industry
Date Submitted: 04/11/2011 10:41 PM
Gabriel Dunz is a partner in a large law firm with 35 partners. A major
international client of the law firm is Solomon Insurance Ltd, a public
company listed on the ASX. Unbeknown to the other partners, Gabriel
has been paying commission to Trent, a director of Solomon Insurance,
for extra work that Gabriel does for the insurance giant.
Over drinks one day, Trent tells Gabriel that Solomon Insurance is about
to go into receivership, and that Gabriel had better send a ‘work in
progress’ invoice for conveyancing work the partnership has been doing
for Solomon Insurance. Trent also asks Gabriel if the partnership would
be interested in preparing the insolvency documents. The law firm
jumped at the chance.
Gabriel tells his accountant the predicament that Solomon Insurance is
in, and she immediately forwards an invoice to the insurance giant for the
conveyancing work.
Meanwhile, Trent shreds hundreds of source documents that have come
his way from both Solomon Insurance and the partnership. The day after
the partnership gets paid for the conveyancing work, share trading on
Solomon Insurance is suspended indefinitely by the ASX.
Required
a. What are the three main ethical issues arising from this case?
b. Who are the stakeholders in this case and who owes whom a duty of
care?
c. How do you think the reputation of each entity would be affected if
the press got wind of the situation?
(a) Some of the main ethical issues include duty of care; professional reputation;
integrity; confidentiality; duty owed to all stakeholders (including public
interest)
(b) Stakeholders include Gabriel Dunz and her 34 other partners; directors,
employees, shareholders, clients of Solomon Insurance Ltd as well as
government agencies and the community at large. Gabriel specifically owes a
duty of care to her other partners while Brendan owes a duty of care to the
shareholders who elected him and the general clients of the Insurance giant.
(c) The reputation and...