Significance of ethics in managerial accounting is obvious: if managerial accountants don’t follow four ethical principles which include Honesty, Fairness, Objectivity, and Responsibility, the data provided by them to business owners and decision makes won’t be factual and objective. Disclosed information by an accountant might lead a business to serious problems and legal implications. Everyone within an organization is required to follow the four IMA’s overarching ethical principles and adhere to them.
In the described situation that happened in Hi-Power Mower Company, the following stakeholders are affected by Marcus’s actions: Marcus Lum (the cost accountant for Hi-Power Mower Company), Marcus’s friend Ray Pon (the production manager for …show more content…
Whether negatively or positively, it all depends on what results Marcus decides to report to the management. If Marcus follows IMA 's overarching ethical principles (Honesty, Fairness, Objectivity, and Responsibility), both the management and Marcus will be impacted positively. Meanwhile, his friend, Ray Pon, will be impacted negatively because he will lose his …show more content…
Moreover, Marcus will be negatively impacted too: if management finds out about what he has done, he will lose a job and have a bad reputation. However, we can say Marcus will be positively impacted since his friendship with Ray won’t be ruined. Nevertheless, sooner or later, management will realize that something is wrong with the report and will discover what Marcus did. In this case scenario, Ray is positively affected. He will be working for the company and won’t get in any trouble for anything because it would be Marcus who lied on the report, not Ray.
Furthermore, Marcus’s ethical obligations to the company are the following: he should provide the management with accurate numbers and figures to help them make right decisions for the business. Marcus should not follow his friend’s suggestion about what report to deliver. Marcus has to remember that he has obligations to his job and the position he holds; therefore, Marcus must ignore Ray’s comments and do his job ethically. In order to to it so, he should stick to four IMA’s ethical principles; mainly, be honest and responsible at this
In the described situation that happened in Hi-Power Mower Company, the following stakeholders are affected by Marcus’s actions: Marcus Lum (the cost accountant for Hi-Power Mower Company), Marcus’s friend Ray Pon (the production manager for …show more content…
Whether negatively or positively, it all depends on what results Marcus decides to report to the management. If Marcus follows IMA 's overarching ethical principles (Honesty, Fairness, Objectivity, and Responsibility), both the management and Marcus will be impacted positively. Meanwhile, his friend, Ray Pon, will be impacted negatively because he will lose his …show more content…
Moreover, Marcus will be negatively impacted too: if management finds out about what he has done, he will lose a job and have a bad reputation. However, we can say Marcus will be positively impacted since his friendship with Ray won’t be ruined. Nevertheless, sooner or later, management will realize that something is wrong with the report and will discover what Marcus did. In this case scenario, Ray is positively affected. He will be working for the company and won’t get in any trouble for anything because it would be Marcus who lied on the report, not Ray.
Furthermore, Marcus’s ethical obligations to the company are the following: he should provide the management with accurate numbers and figures to help them make right decisions for the business. Marcus should not follow his friend’s suggestion about what report to deliver. Marcus has to remember that he has obligations to his job and the position he holds; therefore, Marcus must ignore Ray’s comments and do his job ethically. In order to to it so, he should stick to four IMA’s ethical principles; mainly, be honest and responsible at this