In: Accounting
Cheyenne Washington is the department manager for Religious Books, a manufacturer of religious books that are sold through Internet companies. Ms. Washington's bonus is based on reducing production costs.
Ms. Washington has identified a supplier, Cheap Paper, tht can provide paper products at a 10% cost reduction. The paper quality is not the same as that of the current papaer used in production. If Irwin uses the supplier, she will certainly achieve her personal bonus goals; however, other company goals may be in jeopardy. What is the ethical issue? Identify three key performance issues at risk, and recommend a plan of action for Ms. Washington.