Tonya Latino is a staff accountant for Cannally and Kennedy, local CPA firm. For the past...

Tonya Latino is a staff accountant for Cannally and Kennedy, local CPA firm. For the past 10 years, the firm has given employees a year – and bone is equal to two weeks salary. 15, the firms management team and there was that there would be no angel bonus this year. Because of the firm’s long history of giving a year-end bonus, Tonya and her coworker had come to expect the bonus and believe that Cannally and Kennedy had implicit agreement by discontinuing the bonus. as a result, she would make up for the lockdown is my working an extra six hours of overtime for a week for the rest of the year. Cannally and Kennedy’s policy is to pay overtime at 150% straight time. find your supervisor was the price of the overtime being reported, because there is generally very little additional or unusual client service to me and said the end of the calendar year. However, the overtime was not question, because employees are on the “honor system” in reporting their work hours.

-what ethical issue, if any is at stake in this case?

-what is really the problem in this case? Is it the honor system or the bonus system?

-who are the stakeholders?

-what should be done to resolve this issue?

Expert Solution

- The ethical issue in this case is whether Tonya and coworker should report additional working hours to make up for the year end bonus which was not declared. The bonus is not a part of the salary structure, thus it is not mandatory for Cannally and Kennedy to pay the bonus.Thus, reporting overtime when there is no additional service or clients is not ethical as the company is placing trust on its employees.

- The real problem in this case is the bonus system. Non declaration of bonus has lead to employees behaving in a dishonorable manner as they were used to the money coming in. The honor system cannot be blamed as the employees have not done any reporting which was incorrect before non declaration of dividends.

- The stakeholders are the management of the company and employees of the company.

- To resolve the issue, Tonya and her coworker should ask the reason for the non declaration of bonus and have a frank discussion with the management. A raise or a variable portion of salary can be asked as bonus based on performance.

ekkarill92 answered 1 year ago

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