Becky Knauer recently resigned from her position as controller for Shamalay Auto

Question

Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand.

The manufacturer's regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of high demand for these cars, dealerships all want to receive as many cars as they can from the regional manager.

            Becky's former employer Shamalay Automotive, receives only about 25 cars a month; consequently, Shamalay was not very profitable.

            Becky is surprised to learn that her new employer, Mueller Imports, receives over 200 cars a month. Becky soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services." Franz Mueller, the owner of the dealership, personally approves payment of these invoices , noting that each invoice is a "selling expense." From casual conversations with a sales person, Becky learns that Mueller frequently gives Rolex watches to manufacturer's regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma.

Requirements:

1.     Put yourself in Becky's place

a.     What is your ethical issue(s)?

b.     What are your options?

c.      What are the possible consequences?

d.     What should you do?

Explanation / Answer

1a) If I am in Becky place, I can found easily, because my new employer, Mueller Imports, giving bribe as like gifts to manufacturer, get hunge hnumber of order it is ethical issue the reason is if he continues giving the gifts to get order, other dealers would get suffered.

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b) There are two ooption for me

1) I have to resign my job

2) The employer should stop the bribe

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3c) I can Speak with employer not to engage in the bribe activities, it is considered to be a biggest ethical issue and provide the awareness about ethical, there is possibliy of other dealers can file a case against him.

Now, I can come to know my employer doing unethical issues, As a controller I could not support this kind of issue, because record and maintanance the accounts books under rules and regualation of law, in this case that too violated.

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d) I should resign my job.

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