Question

In: Accounting

Discussion Question: Super Security Co. offers a range of security services for athletes and entertainers. Each...

Discussion Question:

Super Security Co. offers a range of security services for athletes and entertainers. Each type of service is considered within a separate department. Marc Pincus, the overall manager, is compensated partly on the basis of departmental performance by staying within the quarterly cost budget. He often revises operations to make sure departments stay within the budget. Says Pincus, “I will not go over budget even if it means slightly compromising the level and quality of service. These are minor compromises that don’t significantly affect my clients, at least in the short term.”

Answer the following three questions:

  1. Is there an ethical concern in this situation? If so, which parties are affected Explain.
  2. Can Pincus take action to eliminate or reduce any ethical concerns? Explain
  3. What is Super Security’s ethical responsibility in offering professional services?

Solutions

Expert Solution

1. Yes, there is an ethical concern in this situation as the level and quality of services to the client's are being sacrificed in order to remain within the allocated budget. Client's such as athletes and entertainers are being affected by this as they are not receiving quality services. It will also affect Super Security Co. as it might lose its credibility and subsequently, business in the market due to low quality services.

2. Yes, Pincus must take action to remove ethical concerns by not compromising with the quality of the services and he can even approach to the higher level of management to reconsider and revise the cost budget. He should also focus to stay within the budget by reducing wastage of resources rather than by sacrificing quality and level of services provided.

3. Super Security Co. must provide quality services to the clients as it's ethical responsibility while providing professional services. It must not compromise on the level and quality of the services as this may result in causing harm to the clients and even losing its own brand name and value in the market. It should be honest and fair towards it's client's cli must deliver what is promised to the clients.


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