According to the Markkula Center for Applied Ethics, business ethics can be defined as the acceptable standards and behavior that promote human welfare in a business setting. Alison Lloyd is a new employee (internal auditor) for Gem Packing and she has just realized an illegal scheme that has been practiced in favor of the sales team in assisting them to meet the quotas easily. Lloyd is shocked and doesn’t know what to do, upon inquiring from the head of purchasing of the company, she realizes he knows every detail of how the scheme works. However, top management is unaware of this illegal activity. Lloyd has two options; to comply and go along with the scheme or to oppose the scheme and expose the illegal dealings to the top management.
Either choice will have consequences. Before considering making any move, Lloyd must ask herself, who will be hurt? If the sales department will be affected, how severe will they be affected? If the company will be affected, how severe will it be affected? Surely, if she decided to oppose the scheme, the entire sales department will be exploding with anger. However, this will save the company from the financial burden it has been carrying over the years. This will further mean that the sales and promotion team will have to work harder to hit their bonus targets.
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Certainly, Lloyd must make a decision that does not compromise her ethical code of conducts. According to auditor’s ethical code of conducts, honesty and integrity are paramount. Lloyd must, therefore, adhere to these codes and expose the scheme to the management. Otherwise, she may eventually pay heavily for her silence in the future if the management gets the wind of the illegal activity.