Briefly applying a decision-making framework, Anne Distagne, CEO of Linkage Construction, Inc., is the relevant stakeholder in this case. She played a crucial role in the decision-making process of providing false information to hide the considerable profit rise. Multiple ethical concerns arise from this situation.
The text discusses two main issues. Firstly, it addresses Anne's behavior towards the accountant, Sue. Anne used her position of authority to manipulate Sue into revising the figures. Secondly, it explores the details involved in manipulating the numbers. Anne's motive was to decrease the reported 35% gain from the previous year, as she was concerned about her image and feared being seen as lacking control over the company's activities. Additionally, there was apprehension about not meeting expectations in the upcoming year. Ann
...e aimed to conceal the accurate information regarding the construction projects in order to report lower profit percentages for each job.
Anne wants to include the Sl 24,000 In R;D costs incurred in order to manipulate job costs in inventory for the ducting system from both jobs. Sue needs to come up with a plan and evaluate all the options given in the situation. She should then discuss it with Anne, although Anne may not agree with the correct decision as it goes against her preference for steady growth. However, this decision is the most ethical and appropriate one. Sue should also mention the possible alternatives and emphasize that engaging in unethical practices will only lead to more unethical decisions, which could ultimately harm the company. Making one unethical business decision makes it easier to make the same choice again.
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