Question

In: Accounting

Ethics Case What should he do? Tobias Ivanov, a senior accountant, has just completed his third...

Ethics Case

What should he do?

Tobias Ivanov, a senior accountant, has just completed his third year at a large accounting firm. During this time, Tobias has been consistently evaluated as an above average performer and a “team player.” Lately Tobias has been concerned about the heavy work load in this firm and has decided to enroll in an MBA program. He recently applied for admission to several of the nation's top business schools. The school in which Tobias is most interested had an October 1 deadline for a trial financial aid package, designed to attract top candidates, which covers all costs and pays $10,000 per year. This is the first year for the program and there is no guarantee that the program will be available in future years. Based on his conversations with university officials, Tobias is quite optimistic about being admitted and receiving the funding, even though a final decision will not be made until February. Tobias plans to enter an MBA program, even without the special funding, beginning in August of the following years, but he has told no one at the firm of his plans.

Janice Conrad, a partner in charge of training and development for the local office, has just received information from the national office of the firm related to a five-month accounting internship-exchange program the firm has arranged with offices in Europe, Australia, and Russia. Applicants must have three to five years with the firm, be above-average performers, have long-term career potential with the firm, and be fluent in the host country’s language. Janice immediately thinks of Tobias, who is a first-generation American with strong family connections in Russia. Janice arranges to have lunch with Tobias the next day.

At lunch Janice confirms that Tobias is fluent in Russian and then presents to him the information on the five-month internship in the Moscow office, from January through May of the following year. Tobias and Janice talk with excitement about the personal and professional benefits of five other relatives who live in Russia. The firm would benefit by having someone with experience in the Moscow office. Janice thinks Tobias has an excellent chance of being selected for the program and offers to write a recommendation letter for him. She gives Tobias an application and encourages him to complete it immediately, since it is now mid-October and the application deadline is November 1.

That night, Tobias sits down to consider his career plans. Although he is very excited about the opportunity to go to Moscow, he is also convinced that he would love to enroll in a full-time MBA program in the fall. He realizes that it is possible to intern in the Moscow office from January through May, return to his current office for June and July, and then begin the MBA program in August. Tobias wonders if he should talk to Janice about his MBA plans, but he hesitates. He knows that firm policy requires only a two-week notice prior to leaving the firm. Tobias decides that there is no harm in applying, but he questions his long-term intentions with the firm and wonders what to do.

Address the following Questions using complete sentences/paragraphs. Your write up should be a minimum of 1.5 pages, and could be more.

  1. Identify the relevant facts of the case.
  2. Identify the ethical issues within this case.
  3. Identify and list the primary stakeholders in this case.
  4. Identify and discuss the possible alternatives for the dilemma and the ethics of each alternative.
  5. What, if any, are the constraints to the alternatives?
  6. What action should be taken by Tobias and Janice depending on the alternative taken?

Solutions

Expert Solution

As the case discussed above, we have seen that Tobias has some plans for him.

Let us discuss the facts relating to the case.

Tobias wants to join a MBA program which will start from following year from August. The last date for enrolling in program is 1st October. Tobias is very excited to join the course.

On the other hand, Janice offers Tobias to do an internship for 5 months in Moscow from January to May in the following year. After hearing this offer, Tobias is again excited for this.

Finally he thinks of doing the internship from January to May and then for two months return back to office work and after two months from August join the MBA program.

The rules of office tells to tell two weeks prior to leaving.

These are the facts relating to the case

If we talk about ethical issues, as Tobias is serving the organization for three years, it will be not fair hiding his plans from the organization because the company needs to find his alternative and two weeks is not sufficient to replace an employee who is very responsible and has huge responsibility of the organisation.

It will therefore create problem for the organization. This is the ethical issue coming forward as it will not be fair to keep his plans hidden. Tobias should tell his plans to his organization so that organization can plan accordingly to hire new employ in place of Tobias.

This will be an ethical way to handle the situation. This way he can serve his organization best. The organization will also understand the decisions of Tobias and encourage him as he has been serving the organization for three years and is a employe with good records.

If we talk about the stakeholders in this case, they are the company officials and head, the management, the shareholders because Tobias leaving the organisation would make all these suffer. As the company may go in loss and affect the company officials. The shareholders would also face loss because value of the form will decrease. Similarly the employees would have to suffer if any suitable employee is not employed in place of Tobias.

The possible alternatives here are,

First is that, Tobias should tell the organization that he is planking to join MBA program from next year and as the organization would have enough time, they find a replacement for Tobias or they can give Tobias responsibility to train an employe under him to make him proficient in the work done by Tobias. This is the most ethical step that could have been taken by Tobias.

Second alternative is that Tobias would have continued his work and at the last two weeks would have revealed that he has plans for leaving the organization. This would not be an ethical step taken Tobias as this could create problems for the organization.

One more alternative is that fir the time Tobias would have been in Moscow, someone would be looking to his works. After returning from internship he should tell his plans to organisation and for two months well train the one looking after his works and make him fully proficient so that the organization would not face any problem. This is also an ethical approach to the problem.

This way the dilemma arising can be settled in the best way.


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