In: Accounting
David Little is a senor working at MYH and is part of
a 3-person team working on a client’s material loan application
that needs to be finished and delivered to the partner on Monday
morning. The team are working all weekend to get it finished. There
is a strong incentive for the team members, as a well prepared and
successful application will ensure that this major client is
retained within the firm and raise the standing of the team members
in the firm. On Sunday morning, one of the team, John, calls in
sick. The rest of the team work harder and get the job done.
When David get home exhausted on Sunday night, his flatmate says,
“I saw John and his girlfriend at that new restaurant in town
today, I thought he was working in your team.”
What should David do? David doesn't think that it is
fair if John gets the same kudos as the rest of the team when he
did not put in the same amount of effort but he is David's friend.
David and John play on the same touch football team and often
spend time with each other after work and at weekends. Should David
tell the partner or are there other options?
Required:
Outline the ethical issues and your decision using the
American Accounting Association decision model. Use the following
template to guide your answer:
American Accounting Association Model
Decision making process
1. Determine the facts
The facts are ...
2. Define the ethical issues
3. Identify the major principles, rules and values
4. Specify the alternatives
5. Compare values and alternatives
6. Assess the consequences
7. Make your decision
1. Facts of the Case:- In the given case there are 3 person team which were working on clients loan application which needs to be delivered to the partner. One of the team member that was John, who calls in sick, and unable to come to office to contribute to this work. The other member David got the information from his flatmate that he saw the john hanging out with his girlfriend.
2. Ethical Issue: - In the above case one of the team member took a leave in name of sickness and spent his day with his girlfriend and other two members were doing the hard to complete their work on time. As John was one of the member have to contribute in the work but the John wrongly inform about his sickness between the important loan application, where other two members contribute their full efforts
3. Major Principles, rules and values:-
Competing Rights -"right versus right"-The debate over abortion is often spoken in the terms of the right of life versus the right of choice.
Under this two angle to be seen first, whether the Right of life of John Vs the Right of doing right things. In the above case it was right that John had his own life and his own choices of doing whatever he want to do. But for his own benefit he can’t use others for this. In the given case it was not ethical to take leave on the due dates with no genuine reason. Therefore the Right of life of John can’t overcome his wrong ethics in the environment of office. Where his presence was important.
“Unethical Behaviour”- In the above case John was pursuing unethical Behaviour by using untruth reasons for taking leave where incentive is connected with this work. If he tell the truth to other team member than it would be the right call from his end and also ethical.
4. Specify the alternatives: -Alternatively here John and Other two members can talk to each other about the incentive. If John is ready to distribute his share to other members without fail than it can be justifiable.
5. Comparing Values and alternatives:- If we see and compare values and alternatives with each other than values are more important than any alternatives. Alternative is the other way to resolve the problem. This is the third pay to resolve the problem without effecting any of the party and agreed by all.
6. Assess the consequences:-
7. Decision:- From the above we can conclude that values are more important than other alternatives. As John had taken leave with giving wrong reason, and work was connected with the incentives therefore John was not entitled for any incentives and also apologise for the mistake.