Discuss the below:
Subject: Tackling an ethical dilemma
Introduction
The situation involves manager instructing an inferior employee to record an entry in an erroneous manner. The purpose of this memorandum is to discuss how an accountant faces with ethical dilemma and how to make a decision to comply with the code of ethics.I will describe the situation, the conflict between values and norms, the affected stakeholders and the solution of this ethical dilemma. This paper will also highlight the morals behind whistle blowing, the situations it is applicable and which ones it does not.
The Situation
James has been working as an accountant for ABC for four years. ABC is a large construction company that has been in operation for more than thirty years. ABC has the obligation of disclosing its financial statements at the end of each year to the internal and external stakeholders. ABC received a new contract from client to build an apartment. The contractwas signed on December1st with the agreement that the service will be completed next year. According company's accounting policy, revenue is only recorded when service is fully completed.However, the accounting manager instructed James torecord the full amount of the contract in December to boost up income for the current year end. The manager said that the company was facing with financial crisis and did not make enough profit to meet the stakeholders' expectation. The manager also mentioned that the company might be shut down if not receiving the supports from stakeholders, especially investors.
The Ethical Dilemma and Ethical Norms
The manager pointed out to James if the company receives benefit for the boosted income thenhewill receive an appreciation in an upcoming performance and the entire workforce will remain in their jobs. James is confronted with an ethical dilemma to either be loyal to the company or be honest to the stakeholders. As an employee, James should follow the order from the manager to help the company overcome financial difficulties. As a professional accountant, James has responsibility to make sure the financial statement is presented fairly and accurately. It is critical because the investors use financial statement to assess the success of the company.
The Stakeholders Affected by Dilemma
The key affected stakeholders include the investors, creditors, suppliers and employees. The investors will reply on falsify financial statement to continue investing or even increase the investment amount to ABC. The creditors allow ABC to borrow money. Suppliers are willing to provide more supplies. Employees will get lay off.
Alternative course of action
I believe companies and government organizations venture over legitimate and moral lines, informants can make these practices open information, which can prompt violators being considered responsible. The included investigation that accompanies criminal examinations, common claims and media consideration can impact the conduct of comparable associations. Organizations and government work places that participate in comparative unfortunate behavior may have at one time accepted they could escape with their terrible conduct, yet the gradually expanding influence of the informant's exertions can realize changes.
Despite the fact that informants may comprehend that their disclosures serve more prominent else's benefit, they likewise frequently bear individual issues from their activities. Media outlets looking for a story will dive deeper into the informants' close to home lives. Lawful difficulties from criminal examinations and common claims against the organization may oblige them to contract lawyers to shield themselves. They might likewise get dangers of countering from previous directors and associates.
Media meetings, legitimate confirmation and government examinations can influence the informant's vocation prospects. While the outside world may view informants as legends for uncovering degenerate conduct, industry insiders and contracting supervisors may see them as unfaithful or rash for not keeping organization insider facts and industry hones under wraps. The media consideration may prompt the informant being boycotted in his industry.
Solution
To solve this dilemma, we need to worry about the last result before settling on choice. The last object is keeping the backings from stakeholders. The desire of stakeholders on enterprise decides by validity, dependability, reliability and obligation. The stakeholders evaluate the accomplishment of an organization focused around these variables. In the event that we choose to lie on monetary explanation to stay with the relationship in the middle of both and financial specialists, company won't get regarded by their stakeholders if speculator figure out reality and it will harm the organization's notoriety. Thus, I suggest James by not after the administrator demand. James ought to converse with the parts of the board and request their recommendation. He ought to express his assessment that the organization will lose the trust from all speculators for control the money related proclamation in the event that they figure out. Lying on budgetary articulation to draw in financial specialists is dishonest and unsatisfactory. We ought to examine with the speculators that the misfortune from in the not so distant future is impermanent. I would recommend the board to create a solid code of ethic to abstain from wrongdoing
Personal Beliefs or Feeling
In my opinion, accountants ought to have a moral commitment to do their work with due watchfulness, and to just record work that has positively been fulfilled and in the right way that brings the genuine and reasonable estimation of the association to any invested individual. The association is singularly subject to their respectability for survival, and thus the best thing will be to take after code of ethic and set principles. Therefore, worker can't simply do what supervisor has been solicited, as the standard from uprightness obliges an expert bookkeeper not to be associated with data that they consider as false or tricky. Bookkeepers ought to be responsible for the legitimate presentation of the money related statements. Individuals in the bookkeeping calling have a significant obligation to the overall population. For general society to depend on the data gave there must be a level of trust in the information and conduct of bookkeepers. Moral conduct is essential in the bookkeeping calling to avert deceitful exercises and to addition open trust. The central government's Whistleblower Protection Program secures workers who report infringement of different work environment wellbeing, ecological, budgetary change and securities laws. The project secures from striking back specialists who blow the whistle on their head honcho's conduct. Retaliatory activity can incorporate rejection, downgrade, dissent of profits and lessening of working hours. However the consideration that an informant case brings, both to the representative and the organization, can have a drawback.
Conclusion
Eventually in any individual's vocation, individuals are experiencing in particular circumstances of moral issues. Bookkeepers in any association are constantly anticipated that and needed will comply with the codes of morals with the aim to keep up their expert notoriety in all that they achieve. The organization ought to know their obligation and dependably settle on a moral choice. Organizations discovered to be infringing upon the informant insurance laws can face fines, suspension of government contracts and common claims.