Business Ethics Chapter 7 & 8
What factors influence Dawn’s options? 2. The main factors that will influence Dawn’s options are the possiblity of the loss of productivity and a lower moral within the hospital. In the past when they tried to break the union the nurse’s prouctivity slowed. This could in turn cause a drop in the quality of care that is given to the patients. The lower quality of care there is the greater chance things could happen and lawsuits being filed againsts the hospital.
Identify the ethival and legal issues of which Gerard needs to be aware
1. The fact that Gerard’s department is doing CPA duties and investment advising is a conflict of interest and is unethical because they are receiving extra money while doing this. Financial advice like this should come from someone who is unbiased. His employees could end up serving their interest at the expense of their clients causing a reduction in the quality of information given out to their clients and by doing this it leads the CPA’s down a road to making unethical decisions.
Gerard works for Trawlers Accounting and has for several years, but pressures from his wife’s high-risk pregnancy and changes in the accounting industry have placed him in a difficult situation. Financial, emotional, and organizational pressures to which Gerard is exposed are issues. The issue of accounting firms going into the financial services industry has become prevalent. We saw such conflicts of interest arise in the fallout after the most recent Wall Street meltdown in 2008. However, many of the large accounting firms have purposefully stayed away from this practice because of the potential conflict of interest, as brought up in the scenario.
Another issue in this case involves the question of what is Gerard going to do to pacify existing clients? What are the ramifications of unwittingly engaging in illegal activities because of either misinformation or lack of experience?
Discuss the advantages and disadvantages of each
Identify the ethival and legal issues of which Gerard needs to be aware
1. The fact that Gerard’s department is doing CPA duties and investment advising is a conflict of interest and is unethical because they are receiving extra money while doing this. Financial advice like this should come from someone who is unbiased. His employees could end up serving their interest at the expense of their clients causing a reduction in the quality of information given out to their clients and by doing this it leads the CPA’s down a road to making unethical decisions.
Gerard works for Trawlers Accounting and has for several years, but pressures from his wife’s high-risk pregnancy and changes in the accounting industry have placed him in a difficult situation. Financial, emotional, and organizational pressures to which Gerard is exposed are issues. The issue of accounting firms going into the financial services industry has become prevalent. We saw such conflicts of interest arise in the fallout after the most recent Wall Street meltdown in 2008. However, many of the large accounting firms have purposefully stayed away from this practice because of the potential conflict of interest, as brought up in the scenario.
Another issue in this case involves the question of what is Gerard going to do to pacify existing clients? What are the ramifications of unwittingly engaging in illegal activities because of either misinformation or lack of experience?
Discuss the advantages and disadvantages of each