Scott Bestor is an accountant for Westfield Company. Early this year, Scott made
ID: 2468247 • Letter: S
Question
Scott Bestor is an accountant for Westfield Company. Early this year, Scott made a highly favorable projection of sales and profits over the next 3 years for Westfield's hot-selling computer PLEX. As a result of the projections Scott presented to senior management, the company decided to expand production in this area. This decision led to dislocations of some plant personnel who were reassigned to one of the company's newer plants in another state. However, no one was fired, and in fact the company expanded its work force slightly. Unfortunately, Scott rechecked his computations on the projections a few months later and found that he had made an error that would have reduced his projections substantially. Luckily, sales of PLEX have exceeded projections so far, and management is satisfied with its decision. Scott, however, is not sure what to do. Should he confess his honest mistake and jeopardize his possible promotion? He suspects that no one will catch the error because sales of PLEX have exceeded his projections, and it appears that profits will materialize close to his projections. Instructions
(a) Who are the stakeholders in this situation?
(b) Identify the ethical issues involved in this situation.
(c) What are the possible alternative actions for Scott? What would you do in Scott's position?
Explanation / Answer
Answer a
The stakeholder in this situation arer as follows =>
1. Scott
2. Managemnet of a Company
3. The Financial Community.
Answer 2
Ethical Issues are =>
Loyalty of Scott towards Company and its management.
He should excercise due vigilence while making projections for sales.
Answer 3
Possible Actions are
1. Ignore the matter
2. Inform then Boss or Management.
3. Inform the boss and follow the standard procedure
If i was in his position, I would have informed the management about the mistake i did, showing my honesty and loyalty towards company without thinking that my honesty may jeopardse my promotion. But being ethical and loyal will always help me in long run and that what my concise will allow me.
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