Poor decision-making can be the downfall of any business if they are not careful. This type of decision-making usually occurs when people such as Mr. Winters are overconfident and unware of the potential consequences of their irrational decisions. It is a business leader’s responsibility to serve as a positive role model for your employees by behaving in a manner that does not condone unethical behavior in the workplace. The IMA Code of Ethics was developed to prevent Management Accountants and business leaders from making poor costly decisions that can negatively impact the employees, companies, and shareholders. The Handico ethical case study has taught us the importance of consulting with others before taking drastic measures to reduce expenses and improve profitability. In this paper, I will briefly discuss my thoughts on the ethical issues associated with Mr. Winters cost-cutting decision.
After reading and analyzing this case study, it seems that Ms. Ericsson is concerned with how Mr. Winters cost-cutting decision will reduce company productivity by cutting costs spent on employee training, machine maintenance, and quality control. She felt that cutting costs in these areas would be detrimental to the continued success of the organization and decided to set-up a meeting with Mr. Winters the …show more content…
According to the IMA Code of Ethics, Mr. Winters request for Ms. Ericsson to withhold pertinent information from her quarterly reports is a violation of the competence, confidentiality, integrity, and credibility components. The competence component holds Ms. Ericsson responsible for disclosing Mr. Winters cost cutting decisions to the corporate office without his consent. Under this component holds her accountable for communicating her concerns with Mr. Winters proposed reductions to the corporate office as soon as
After reading and analyzing this case study, it seems that Ms. Ericsson is concerned with how Mr. Winters cost-cutting decision will reduce company productivity by cutting costs spent on employee training, machine maintenance, and quality control. She felt that cutting costs in these areas would be detrimental to the continued success of the organization and decided to set-up a meeting with Mr. Winters the …show more content…
According to the IMA Code of Ethics, Mr. Winters request for Ms. Ericsson to withhold pertinent information from her quarterly reports is a violation of the competence, confidentiality, integrity, and credibility components. The competence component holds Ms. Ericsson responsible for disclosing Mr. Winters cost cutting decisions to the corporate office without his consent. Under this component holds her accountable for communicating her concerns with Mr. Winters proposed reductions to the corporate office as soon as