How To Write A Case 7-3 Step 7 Step
Seven-‐Step Analysis Case: Olympus’ Accounting Fraud
Report
by: Jessica Gahtan
Course: MGMT 1040
Instructor: Professor Bill Woof
Gahtan 1
Gahtan 2
Table of Contents: Review of the case…………………………………………………...........3 Recognize all moral impacts…………………………………………….5
Stakeholder Table Key Stakeholder Analysis
The Moral Problem………………………………………………………..10
Why is it a moral problem?
The moral problem and ethics
Economic Outcomes……………………………………………..……….12 Legal Requirements…………………………………………...………...13 …show more content…
This theory is suggests that the largest economic benefit occurs at the lowest possible cost if three requirements are met:
(1) all markets must be competitive and free; (2) all customers and all suppliers must be informed; (3) all costs must be included. In the Olympus case, this is not the case. All markets are not competitive since by understating its net worth, Olympus is able to borrow credit at a lower cost because its risk is superficially low. In addition, by making its worth appear superficially high, Olympus is able to gain an unfair advantage over competitors that makes the market uncompetitive. It is reasonable to assume that the second requirement is met- since there has been no evidence that the costs directly related with the production of goods have been misleading. The third condition is not met since they are not accurately disclosing their accounting records. Thus it is safe to discern that
Olympus’ actions violated the theory of Pareto Optimality, which reaffirms that this behavior is unethical.
Gahtan 13
Legal Requirements This moral
Report
by: Jessica Gahtan
Course: MGMT 1040
Instructor: Professor Bill Woof
Gahtan 1
Gahtan 2
Table of Contents: Review of the case…………………………………………………...........3 Recognize all moral impacts…………………………………………….5
Stakeholder Table Key Stakeholder Analysis
The Moral Problem………………………………………………………..10
Why is it a moral problem?
The moral problem and ethics
Economic Outcomes……………………………………………..……….12 Legal Requirements…………………………………………...………...13 …show more content…
This theory is suggests that the largest economic benefit occurs at the lowest possible cost if three requirements are met:
(1) all markets must be competitive and free; (2) all customers and all suppliers must be informed; (3) all costs must be included. In the Olympus case, this is not the case. All markets are not competitive since by understating its net worth, Olympus is able to borrow credit at a lower cost because its risk is superficially low. In addition, by making its worth appear superficially high, Olympus is able to gain an unfair advantage over competitors that makes the market uncompetitive. It is reasonable to assume that the second requirement is met- since there has been no evidence that the costs directly related with the production of goods have been misleading. The third condition is not met since they are not accurately disclosing their accounting records. Thus it is safe to discern that
Olympus’ actions violated the theory of Pareto Optimality, which reaffirms that this behavior is unethical.
Gahtan 13
Legal Requirements This moral