Acc/260 Week 8

The stakeholder involved in this decision would be Anne Distagne the CEO of Linkage Construction, Inc. Anne is the individual involved in the decision making process of wanting to falsify documents and information to not display the significant increase in profit.

There are several ethical issues involved with this case. A major issue is Anne’s attitude towards Sue her financial accountants profession. Anne is using her position of authority to threaten Sue to falsify the figures. Another issue was the details involved behind the manipulation of her financial figures. She wanted to take down the 35% gain that was over the previous year because she feared this would create a reputation of not being able to control the company’s activity, also the worry of coming up short next year. Not wanting to report the accurate progress on the construction projects so smaller figures can be reported on the percentage of expected profits on each job is also an ethical issue. Adding to her unethical character she also wanted to expense the $124,000 in R&D costs that was incurred so that they use it to fabricate out of job costs in inventory for ducting system from the two projects.

I believe Sue should evaluate her professional morals and think about what it might do to her professional career if she lets Ann pressure her into the unethical actions. I think Sue should take a moment and approach Anne and let her know that she is not comfortable fabricating that kind of information and risking her professional career, as well as remind her what might happen to her career and her business if she is caught forging documents. Sue could also help suggest ways to maybe better maintain the figures so it doesn’t seem so unpredictable.