Question

In: Accounting

X Corporation discovers that a product it manufactures has exposed its employees to asbestos for decades....

X Corporation discovers that a product it manufactures has exposed its employees to asbestos for decades. It must decide what to do with this information. If it suppresses its discovery, the business will remain successful and the company's owners will continue to profit, but current and former employees will continue to endure negative health effects.

According to Josephson's core values model for ethical decision-making, what should X Corporation do next?

  • Determine if the benefits to the owners from suppressing the information outweigh the consequences to employees, or if the reverse is true.

  • Evaluate how likely the corporation is to successfully suppress this information and determine the consequences of being caught.

  • Evaluate whether the decision to suppress the information would satisfy any core values and contrast it to other possible decisions.

  • Decide which core values are at stake in the decision to suppress the information and rank them in order of importance.

Solutions

Expert Solution

What Should X Corporation do next:

Honest Admission and Disclosure,Temporary Shutdown till mitigation of risk in place and compensating the affected employees and any impact on enviornment

Benefit vs Consequences:

In telling the truth and taking responsibility there will be financial consequences but Integrity and abiding by the rules , Caring will be achieved.These are definite to improve the Goodwill of the Organization and outweigh the short term financial impacts in the long run.

Likelihood of Suppression and getting caught:

The Corporation can put the lid till a short period but this id is bound to come off soon.The main reason for same woud be the growing number of current and ex emplloyees becoming sick which would definitely become visible.

Once caexposed the Otganization besides facing the Legal consequenceies (which may be treated as good as Criminal Conspiracy) would loose its Goodwill and standing and ultimately may face shutting down for good.

Decision to Suppress vs Alternative action:

Core Values at Risk:

The table above shows the core values at risk.The following is the ranking of violation of these values -

  1. CARING
  2. TRUSTWORTHINESS
  3. RESPONSIBILITY
  4. CITIZENSHIP
  5. FAIRNESS
  6. RESPECT

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