Lisa Martin acted unethically when she reworked the inventory impairment calculations using Christina Edmonds methodology she determined that the inventory was not impaired and that International Retail Computer Solutions did not need to record an impairment loss. After she reversed her initial impairment loss, the updated financial statements met the covenants required by the First National Bank loan agreement. Lisa should have used the four different philosophical views of ethical behavior which are utilitarian view, individualism view, justice view, and moral rights view when having an ethical dilemma. If she would have applied these philosophical views she could have made the correct informed …show more content…
It judges the ethical aspects of any decision on the basis of how equitable it is for everyone affected (Shermerhorn, 2014 pg. 61). Lisa Martin wasn’t treated fairly and she was asked to bend the legal rules from her superiors so her superiors could receive bonuses. There are four different types of workplace justice which are procedural, distributive, interactional and commutative. Procedural involves the fair administration of policies and rules. Distributive justice involves the allocation of outcomes without respect to individual characteristics, such as those based on ethnicity, race, gender, or age. Interactional justice focuses on treating everyone with dignity and respect. Commutative justice focuses on the fairness of exchange or transactions. An exchange is deemed to be fair if all parties enter into it freely, have access to relevant and available information, and obtain some type of benefit from the transaction (Shermerhorn, 2014 pg. 61). One questionable ethical commutative justice procedure that occurred was when IRCS’s gave National Computers a “special” discount which up-charged the CPU’s but gave discount on other items that National Computers so it would look favorably on the accounting