Management Accounting Professional Ethics
This week will be an analysis of Steve Smith and the ethics faced in Managerial Accounting. Steve Smith is in a precarious predicament with the request from the Corporate United States Chief Financial Officer (CFO) Roberta Blake. Smith has two options in this scenario, one is ethical and one is not. He can do the job that he was hired for and create the costing analysis that will serve as the basis for decision-making for the plant closure, as he was directed by Roberta Blake, keeping the details and information to him self, as it is highly confidential. The other option would be to break that confidentiality, not comply with the request and he could potentially be affected professionally and ethically. …show more content…
The only time that he would be allowed to reveal confidential information is when disclosure has been authorized or the information is required for legal matters ("Institute of management," 2014). With this said, it would be highly unethical for the controller to provide information that is confidential for his own benefit or to other co-workers such as Rick White, for reasons such as securing position ("Institute of management," 2014). Confidentiality is only to be shared with relevant parties within an organization to be sure that the information is not provided to the inappropriate parties ("Institute of management," …show more content…
The analysis needs to be communicated and presented fairly and objectively ("Institute of management," 2014). Once the analysis is completed, Steve needs to provide the pertinent information that could rationally be projected to influence Rick’s understanding of the reports, analyses, and recommendations ("Institute of management," 2014). According to the Institute of Management Accountants (IMA) the information that can potentially be provided would be information on delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and /or applicable law ("Institute of management," 2014). While conducting this research of the analysis and after completion he can converse with his direct report Roberta Blake about his findings for feedback. If there were ethical concerns Steve could contact the IMA Ethics Helpline via telephone at 1-800-245-1383. So it is with in the guidelines of the IMA for Steve to provide Rick with information on the research that he performed on the cost structure and the specifically on the overhead required to run the plant at this location and how the data renders it uncompetitive with affiliate plants. If the information that Steve found or was being asked to reveal was an ethical conflict then he could also consult with his own attorney on the legal rights and obligations
This week will be an analysis of Steve Smith and the ethics faced in Managerial Accounting. Steve Smith is in a precarious predicament with the request from the Corporate United States Chief Financial Officer (CFO) Roberta Blake. Smith has two options in this scenario, one is ethical and one is not. He can do the job that he was hired for and create the costing analysis that will serve as the basis for decision-making for the plant closure, as he was directed by Roberta Blake, keeping the details and information to him self, as it is highly confidential. The other option would be to break that confidentiality, not comply with the request and he could potentially be affected professionally and ethically. …show more content…
The only time that he would be allowed to reveal confidential information is when disclosure has been authorized or the information is required for legal matters ("Institute of management," 2014). With this said, it would be highly unethical for the controller to provide information that is confidential for his own benefit or to other co-workers such as Rick White, for reasons such as securing position ("Institute of management," 2014). Confidentiality is only to be shared with relevant parties within an organization to be sure that the information is not provided to the inappropriate parties ("Institute of management," …show more content…
The analysis needs to be communicated and presented fairly and objectively ("Institute of management," 2014). Once the analysis is completed, Steve needs to provide the pertinent information that could rationally be projected to influence Rick’s understanding of the reports, analyses, and recommendations ("Institute of management," 2014). According to the Institute of Management Accountants (IMA) the information that can potentially be provided would be information on delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and /or applicable law ("Institute of management," 2014). While conducting this research of the analysis and after completion he can converse with his direct report Roberta Blake about his findings for feedback. If there were ethical concerns Steve could contact the IMA Ethics Helpline via telephone at 1-800-245-1383. So it is with in the guidelines of the IMA for Steve to provide Rick with information on the research that he performed on the cost structure and the specifically on the overhead required to run the plant at this location and how the data renders it uncompetitive with affiliate plants. If the information that Steve found or was being asked to reveal was an ethical conflict then he could also consult with his own attorney on the legal rights and obligations