Question

Scott Bestor is an accountant for Westfield Company. Early this year, Scott made a highly favorable projection of sales and profits over the next 3 years for Westfield's hot-selling computer PLEX. As a result of the projections Scott presented to senior management, the company decided to expand production in this area. This decision led to dislocations of some plant personnel who were reassigned to one of the company's newer plants in another state. However, no one was fired, and in fact the company expanded its workforce slightly.Unfortunately, Scott rechecked his projection computations a few months later and found that he had made an error that would have reduced his projections substantially. Luckily, sales of PLEX have exceeded projections so far, and management is satisfied with its decision. Scott, however, is not sure what to do. Should he confess his honest mistake and jeopardize his possible promotion? He suspects that no one will catch the error because PLEX sales have exceeded his projections, and it appears that profits will materialize close to his projections.Instructionsa. Who are the stakeholders in this situation?b. Identify the ethical issues involved in this situation.c. What are the possible alternative actions for Scott? What would you do in Scott's position?Post your Initial Response by Wednesday of Week 5 and 2 follow up comments by Sunday.

Answer 1

Answer

Explanation:

The stakeholder are;

1. The senior management

2. Suppliers of materials

3. Scott Bestor the accountant

4. The Financial Community.

5. The employees

B) The ethical issues  are;

1. Scott mistakes

2.Scott promotion on the line

3. Financial set back from Scott's mistake

(c) Alternative actions:

1. The senior management should be informed about his mistake

2. If his mistake will not cause any damage, he can keep quit.

If I were in Scott's position, I would open up to the senior management. Honesty is what the company look forward to in any employee.

Answer 2

Answer a

The stakeholder in this situation arer as follows =>

1. Scott

2. Managemnet of a Company

3. The Financial Community.

Answer b

Ethical Issues are ;

Loyalty of Scott towards Company and its management.

He should excercise due vigilence while making projections for sales.

Answer c

Possible Actions are

1. Ignore the matter

2. Inform then Boss or Management.

3. Inform the boss and follow the standard procedure

I would have told the management of the error I made if I were in his place, showing my integrity and loyalty to the company without realizing that my integrity might jeopardize my promotion. But being ethical and trustworthy will also benefit me in the long run.