The Error - Business Ethics

“The Error” Ethics Internet Project

Alternative 2 Subgroup

Alternative 2 – Jim should indicate to his superiors the fact that actual project outcomes may not be as high as predicted outcomes, without actually admitting fault.

Following a very positive forecast for sales and marketing at a manufacturing firm, Jim, an accountant at this firm admits his error to a friend and fellow employee. The error that Jim has committed has led the managers at the firm to believe that its cost will be significantly lower than they are in reality. Due to these favorable circumstances the company will soon be pushing forward with an expansion, which would increase the work force. We also learn that Jim is up for a promotion within the company.

Considering the Seven Step Moral Reasoning Model as well as the impact on the various parties (stakeholders) who will be affected by Alternative 2, here are arguments in favor and against this alternative.

Arguments in favor for Jim bringing forward the error to the attention of his superiors:

* When the managers receive the truth about the falsified outcomes analysis they can adjust the firms plans for expansion and possibly save a significant amount of money.

* Early actions can potentially save the firm embarrassment in the eyes of the community and it’s employees. If they do go forward with expansion and close the operations soon after this would negatively impact the firm’s reputation.

* Jim has the weight of his mistake lifted off his shoulders and clears his conscience.

* The adjustments are made and the stock price possibly drops. However, the drop would be much lower than the drop resulting from the expansion going forward and soon after shutting down after the real numbers surfaced.

* Jim honesty could lead to consequences for his actions being less severe. The negative consequences could much more severe be if he chooses to remain silent and wait out the situation and hope the error is never...