MEMORANDUM
Date: January 24, 2013
To: Manager
From: Van Student, Business Analyst
Subject: Discuss options in regards to the delay in implementation of the new system
Please see the summary of the issues that arise because of the implementation delay, and the evaluation of possible course of options to resolve them.
Current issues:
The project has gone far over budget and over schedule. And yet in its final stage, we still face additional cost in new software licensing. In the mean time, we also need the resources in place to launch the new product after years of research and development. We do not have enough cash for both, so the decision here is whether to delay the launch of the new product, or choose to allocate the cash to the project.
A solution was suggested by the lead developer that we could bypass the new software licensing cost by connecting to his company’s server. It is only a temporary solution so we could have enough time to straighten out the cash flow issue. However the dilemma is that is it ethical to do so? If we follow his advice, what are the consequences of such action?
Here are some possible courses of actions:
1/Follow the developer’s proposal: The immediate benefit is that it will allow time to solve the cash flow crisis. However, it is violating the Code of Ethical Principals and Rules of Conduct of CGA Association. The first Rule of Conduct is Responsibilities to Society and according to CEPROC, as members of society, we have the responsibility to safeguard and advance interest of society. Accessing the software through the developer’s server is an unlawful activity under that rule. The cost saving in licensing will not be enough for the possible financial and reputation damages that it will bring if the activity was found out, and we could possibly face lawsuits from Microsoft. That would put the company’s credibility at risk. We also set bad behaviour for our employees.
2/If we do not follow his proposal,