Question

Christine, a newly appointed chief financial officer (CFO) at Winter Pty Ltd, is asked to evaluate and report on the company's present financial condition to the board of directors at an upcoming meeting. She discovers several instances where Paul, the chief executive officer (CEO), has made excessive risky business decisions, going against company policy resulting in the current liquidity problem facing the company.

Paul, Christine’s superior, is fearful of the board’s reactions to the adverse financial report, so he instructs Christine to modify the report to conceal the liquidity problem. Paul told Christine that the liquidity situation will ‘turn around in the near future’ and there is ‘no need to waste the board's time on the matter’. He makes it clear to Christine that if she refuses his request she will no longer have his support.

Describe Christine’s possible response using each of the six stages of Kohlberg’s stages of moral reasoning and development

Answer 1

here is my Answer for the above question

Kohlberg identified three levels of moral reasoning: pre-conventional, conventional, and post-conventional. Each level is associated with increasingly complex stages of moral development.

Stage 1: Obedience-and-Punishment Orientation

Stage 1 focuses on the child’s desire to obey rules and avoid being punished. For example, an action is perceived as morally wrong because the perpetrator is punished; the worse the punishment for the act is, the more “bad” the act is perceived to be.

As per this stage christine is do,The more "bad" the Act of paul is preceived to be.

Stage 2: Instrumental Orientation

Stage 2 expresses the “what’s in it for me?” position, in which right behavior is defined by whatever the individual believes to be in their best interest. Stage two reasoning shows a limited interest in the needs of others, only to the point where it might further the individual’s own interests. As a result, concern for others is not based on loyalty or intrinsic respect, but rather a “you scratch my back, and I’ll scratch yours” mentality. An example would be when a child is asked by his parents to do a chore. The child asks “what’s in it for me?” and the parents offer the child an incentive by giving him an allowance.

As per this stage christine asked paul about "what is in it for him" when he is not reported to board about this

Stage 3: Good Boy, Nice Girl Orientation

In stage 3, children want the approval of others and act in ways to avoid disapproval. Emphasis is placed on good behavior and people being “nice” to others.

As per this stage christine also want to be nice to paul.

Stage 4: Law-and-Order Orientation

In stage 4, the child blindly accepts rules and convention because of their importance in maintaining a functioning society. Rules are seen as being the same for everyone, and obeying rules by doing what one is “supposed” to do is seen as valuable and important. Moral reasoning in stage four is beyond the need for individual approval exhibited in stage three. If one person violates a law, perhaps everyone would—thus there is an obligation and a duty to uphold laws and rules. Most active members of society remain at stage four, where morality is still predominantly dictated by an outside force.

As per this stage christine is give imporatance for the law, so he will report to board the situation.

Stage 5: Social-Contract Orientation

In stage 5, the world is viewed as holding different opinions, rights, and values. Such perspectives should be mutually respected as unique to each person or community. Laws are regarded as social contracts rather than rigid edicts. Those that do not promote the general welfare should be changed when necessary to meet the greatest good for the greatest number of people. This is achieved through majority decision and inevitable compromise. Democratic government is theoretically based on stage five reasoning.

As per this stage christine ask for the opinion of other important people in the company about the act of paul and about the decision of paul,which is majority then christine will do that.

Stage 6: Universal-Ethical-Principal Orientation

In stage 6, moral reasoning is based on abstract reasoning using universal ethical principles. Generally, the chosen principles are abstract rather than concrete and focus on ideas such as equality, dignity, or respect. Laws are valid only insofar as they are grounded in justice, and a commitment to justice carries with it an obligation to disobey unjust laws. People choose the ethical principles they want to follow, and if they violate those principles, they feel guilty. In this way, the individual acts because it is morally right to do so (and not because he or she wants to avoid punishment), it is in their best interest, it is expected, it is legal, or it is previously agreed upon. Although Kohlberg insisted that stage six exists, he found it difficult to identify individuals who consistently operated at that level.

As per this stage christine observes the previous acts of paul about that paul says that the liquidity position will be set in near future and dont waste the time of board unnecessarily, so after observing all previous decisions christine will decide weather paul is telling right or wrong, based on that he will decide to report to board or not.