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Textbook Exercise a) What appears to be the ethical issue involved in this case?

According to the SEC report (2003), the company was engaged in unethical and fraudulent behavior in three major areas. First there was the unauthorized movement of line costs to capital as prepaid capacity, second the improper release of accruals and last of all Additional minor questionable revenue entries resulting in increased operating earnings. b) Is Troy Normand acting improperly or immorally? In this situation, Mr. Normand fraudulent behavior was influenced by his bosses who are the mainly responsible for the issue. He was in the side were he continued to obey his bosses orders and act properly, but most importantly Troy Normand was acting immorally as a professional where it is his job to show truthfulness c) What would you do if you were Troy Normand? Although this is a very tough decision, I would have to follow to act morally which I think is a practice regarding professional behavior. d) Who are the major stakeholders in this case? This issue created a huge impact on the society, and not only the company but also the competitors were also influenced. Hence it can be stated that the stakeholders include a wide range: the shareholders, the companys employees, suppliers, the community and the government.

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