The Utilitarian or Consequence-Based Theory in Business Ethics

Section I 

Kristin should consider not to engage in financial fraud through falsifying records on sales and turnover as this will be professionally unethical. 

Kristin should also consider inventory revaluation as the subtle measure of ensuring that the products are as per the market value as such they will be able to sell considering that for the ensuring period she has been in the organization there has been no sale of the equipment from their stacks. 

Alternatively, Kristin can consider falsifying the records such that the auditors can see there has been the movement of goods from the organization. 

Section II: Ethical Perspectives 

Utilitarian or Consequence-Based Theory 

The utilitarian or consequence-based theory in business ethics asserts that a person should look at the possible choice for making or taking a specific action in light of the consequences of taking that action (Ferrell & Fraedrich, 2015) . Thus, the important central element of any action is the resulting consequence. This theory mainly aims to focus on the outcomes following the decisions made (Crane & Matten, 2016) . Thus, whether an action is morally right or wrong depends on the consequences. In essence, utilitarianism holds that the action that is morally right is the one that produces the greatest well-being for the largest population. Thus, one should maximize the overall good while committing to an action. Hence, a person should consider the good of themselves as well as that of others.

The first choice, not to falsify information, is notable whereby the ethical standpoint of utilitarianism was that the decision made was to benefit the overall masses concerned in the case. For this reason, Kristin would have to ensure that she should not falsify information as this would not only benefit her but also the employees, the creditors, and customers. In essence, creditors suffer financially from organizations that purpose to falsify information so that they would receive more funding. However, this is detrimental to the lending company as when the company becomes insolvent they debtors go away with a massive debt burden, and in worse situations, the banks have no capacity of reclaiming back their money even after they have liquidated the organization's assets. Similarly, the ethical inclination to inventory revaluation benefits the creditors, employees, and the customers. The creditors get to benefit as they will have an overall net worth of the organization if the supposed machinery are sold. Employees get to benefit from this choice considering that now the machinery in the firm will be sold at the market value and fair price. Thus, they will propose the products to the customers and the re-evaluated price. The impetus of this nature, customers will want to acquire the products as they are getting products for the price which is respective in the market price.

Profit Maximization 

Essentially, profit maximization is an ethical theory that applies to for-profit organizations who sole business paradigm is making and accumulating as much as money as possible (Ferrell & Fraedrich, 2015) . Any investor, creditor, or partner would love it when a business is making a profit. However, it is of due paramountcy to ensure that a business and its concerned decision makers outweigh the ethical issues involved and the profit objectives to avoid negative long-term implications and public backlash. In essence, the ethical issues of profit maximization revolve around the fact that customer transparency should be in front of everything (Crane & Matten, 2016) . Thus, there should be honesty and transparency in marketing. This is notable when Kristin landed on the decision to revaluating the inventory and not falsify the information. The previous concerns are most probable to the effects of ensuring that customers can buy the products at the current markets price. Thus, Kristin landing on this decision was customer-centric in that she will be building a reputation of integrity with the customers who will, in turn, ensure that the organization will enjoy on its return in profits. Not falsifying information will help the organization, the CEO, and the employees as a conglomerate of partner integrity. Suppose that Kristin decides to falsify information the consequences will be dire as there will be lost in customer credibility with the organization and also a loss of trust from creditors and financial institutions. Culminating in the loss of business. Thus, revaluation and not falsifying information was directed at ensuring that the organization will stay afloat in business and the former reason will put the organization on the spot for achieving the economies of scale.

Universalism 

Universalism is a Consistency-Based Moral Approach developed by Immanuel Kant which underpins in human autonomy (Crane & Matten, 2016) . Thus, one's moral actions should operate on the realm of human freedom. In other words, a person should be self-conscious and complacent with the reasons behind every action. Thus, personal rules or principles should champion every act that a person commits to. Tentatively, would the same principles be applied in the universal decorum and by everyone. Thus, it can be considered permissible if it passes the universal decorum (Crane & Matten, 2016) . Where it does not, it should be dismissed. Markedly, this theory applies to the two decisions made by Katrin. Deciding not falsify information in the financial statements as told by Art passes for human autonomy as it benefits several parties, including the creditors, herself and moral inclinations, the employees, and the customers at large. Similarly, the decision to revaluating the inventory serves the interests of the employees as the sales force, the creditors, and the customers who will get products at the market value.

Section III 

Culminating, I will consider revaluating the price of the machinery in the organization. That said, this decision will aim to pass the three ethical perspectives of utilitarianism, profit-maximization, and universalism. The first moral perspective, utilitarianism, as a consequence-based approach will better suit the demands of all parties, including the CEO, who was not a proponent of this action. The profit maximization ethical inclination is also a sound situation whereby revaluating inventories ensue. As such, customers will acquire the machinery at the market value, and the organization will receive a return on investments. Similarly, creditors and financial institutions will gain confidence in the organization and future can engage the organization in financial funding agreements. Finally, as the theory of universalism upholds, revaluating inventory, as an autonomous decision, will benefit the CEO, the customers, and the employees.

References 

Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization . Oxford University Press. 

Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases . Nelson Education.