You have recently started a summer job at Painless Dental Supplies. You hope to impress them...

You have recently started a summer job at Painless Dental Supplies. You hope to impress them with your work ethic and accounting knowledge. In order to increase sales, the company is considering paying their salespersons a commission of 1% of sales in addition to their monthly salaries of $2,500. The Vice-President of Finance, Brad Paisley, asked you to compute a new break-even point in sales if the new compensation plan is implemented and to calculate what the operating profit would be if sales increased by 15%. After careful analysis, you presented your results to the company’s Executive team including the President and Vice-President. Your report indicated that the operating profit of the company would increase significantly and the break-even point would decrease. Based on your report, the Executive Team agreed to implement the commission plan. A week after the plan was adopted and announced to the salespersons, you noticed that you made an error in your calculations. You forgot to include the Salespersons’ monthly salaries of $2,500. You are worried about what to do. If you tell Brad Paisley of your error, he will have to tell the President and any chance of obtaining a full time job will likely disappear. Required: 1. What is your ethical dilemma? 2. If you do not tell Brad about your error, will that action be ethical? Explain why it is or is not ethical. ASAP

Expert Solution

An ethical dilemma is a difficult situation in choosing between two courses of action, in which one of them usually is going against a moral principle.

The ethical dilemma here is whether to tell the truth about the calculation error made or not.

Being forced to choose between honesty or dishonesty.

Being quiet about the error and not reporting it to Brad is not an ethical decision as it goes against the morale.

Being ethical in a workplace requires one to follow a set of standards and principles.

The standards are confidentiality, competence, integrity and credibility.

And the principles are honesty, fairness, objectivity and responsibility.

In this situation, if the error is not reported, the employee does not have honesty and is also not taking responsibility for his mistakes.

It also makes him loose his credibility as he is not communicating all the relevant information needed for the decision making purpose in a correct and fair manner.

ekkarill92 answered 1 year ago

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