Ethical Issues in the Scenario

Ethical Issues in the Scenario

The controller Erin Jackson is indeed acting ethically. First, upon realizing that the deluxe-model electric motor is running at a loss, she set out to introduce a new costing method that would be more profitable to the company. In addition, despite the fact that Alan Tylor, the production manager for deluxe-model electric motor, is her personal friend, she refuses to bow to her pressure to abandon the new costing method and to change the figures so that Alan cannot lose her job. Finally, she promises to revise her figures to see if she had made any errors. On the contrary, Alan Tylor is not acting ethically by requesting Erin to massage the number a little bit to prevent her from losing her job. Her request therefore means that she is putting her personal desires before the goals of the company. Jackson’s ethical obligation is to the entire company including the president and her friend. As such, she ought to make ethical considerations based on the views of all the members of the company.

References

Kenton, W. (2018). Activity-Based Costing (ABC). Investopedia.

 

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