Ethics Assigment- New Systems Inc Essay

1114 Words Mar 6th, 2012 5 Pages
interoffice memorandum subject: ethics assigment- New systems inc date: [ 3/18/2012 ]

A number of business ethical conflicts develop due to divergences between different stakeholders’ interests such as; company owners, employees, customers or/and surrounding community. One of the major stakeholders New Systems Inc is experiencing an ethics situation. Alexandra Lopez a certified internal auditor for New Systems Inc has been assigned to the Royal Division for the past two years. Alexandra has found some discrepancies in the company’s asset turnover ratios, which will reduce the company’s ROI (Return on Investments), the base for the division’s performance assessment and bonus system. Other stakeholders are Will Dixon and the Royal
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However, on the other hand, she could create enemies in the company and destroy her friendship with Jean. Furthermore Alexandra faces a second dilemma, according to Jean, the company’s ROI would be improved, and it is only a matter of time until it is fixed. Therefore, even if Alexandra omits some facts in order to report the higher ROI, in a short period of time, the department would make up the numbers necessary to reach the expected ratio, and everyone would be in a win, win situation. In addition Alexandra will likely be awarded a good promotion this coming year to Audit Manager at the home office as a result of her decisions. Therefore it is important to keep a good relationship with the company. Moreover Alexandra’s husband also believes that she should omit the facts and “go along to get along” in this situation. With the above dilemmas at hand, Alexandra needs to decide if reporting or not the right numbers that affects the Company’s ROI as discussed previously. When faced with dilemmas like that, which engage business ethical conflict, the Integrative Social Contracts Theory (ISCT) should be applied. The ISCT examines the proposed action in four dimensions. The first dimension is if the proposed action is compatible with hypernorms, which are based on universal consensus that evolves well-known global industry standards for example. These norms could include religious, political

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