Question

Controllership in Accounting

Employment Rules vs Personal & Privacy Concerns

Characters:         Sandy, the controller of ABC, Inc., a small manufacturing company

Jacob, the controller of Micro, Inc., a small manufacturing company

Sandy is a controller of ABC, Inc., a small regional manufacturing company. During her

four years of employment at ABC, she has worked her way up through the ranks. She has

been the controller for the past year and has consistently received favorable evaluations.

Sandy enjoys her work and is good at what she does.

ABC, Inc., is close to finalizing a merger with Micro, Inc., a similar manufacturing company.

The merger will be finalized in two weeks, on July 1. When the companies merge, various

positions will be eliminated to avoid duplication of efforts in the merged company. A variety

of positions will be cut, including manufacturing workers, office staff, and management

positions. The decisions on personnel cuts will be announced August 1.

Jacob, the controller of Micro, Inc., has been with that company for less than a year. He is

perceived favorably by management. The newly merged company will need only one

controller, and Sandy has received unofficial confirmation that she will be the controller of

the new firm and that Jacob will be dismissed.

Sandy has had significant responsibility for her parents during the past two years. Her

father has terminal cancer, and the specialist has given him only six months to live. Her

mother is emotionally distressed and needs special attention from time to time. In addition,

after years of trying, Sandy has recently found out that she is pregnant. She plans to take a

short maternity leave and then return to work full-time.

Sandy realizes the time demands of her current and experted family and also the time

demands of working as the controller of the newly merged company. She feels that she will

be able to balance her personal and professional life in such a way that her job performance

will not suffer. Yet, she wonders if she should make her boss aware of her responsibility to

her parents and her pregnancy.

Answer the following questions from the case above :-

1. What are the relevant facts of the case?

2. What, if any, are the ethical issues?

3. Who are the stakeholders?

4. What are the possible alternatives including any ethical concerns?

5. What are the practical constraints?

6. What action(s) should be taken?

Answer 1