Saudi Electronic University An Ethical Dilemma Case Study Questions

Case Study
An Ethical Dilemma
Carla knew something was wrong when Jack got back to his desk. He had been with Aker & Aker
Accounting (A&A) for 17 years, starting there right after graduation and progressing through the
ranks. Jack was a strong supporter of the company, and that was why Carla had been assigned to
him. Carla had been with A&A for two years. She had graduated in the top 10 percent of her class
and passed the CPA exam on the first try. She had chosen A&A over one of the “Big Four” firms
because A&A was the biggest and best fi rm in Smallville, Ohio, where her husband, Frank,
managed a locally owned machine tools company. She and Frank had just purchased a new home
when things started to turn strange with Jack, her boss.
“What’s the matter, Jack?” Carla asked.
“Well, you’ll hear about it sooner or later. I’ve been denied a partner’s position. Can you imagine
that? I have been working 60- and 70-hour weeks for the last 10 years, and all that management
can say to me is ‘not at this time,’” complained Jack.
Carla asked, “So what else did they say?”
Jack turned red and blurted out, “They said maybe in a few more years. I’ve done all that they’ve
asked me to do. I’ve sacrificed a lot, and now they say a few more years. It’s not fair.”
“What are you going to do?” Carla asked.
“I don’t know,” Jack said. “I just don’t know.”
Six months later, Carla noticed that Jack was behaving oddly. He came in late and left early. One
Sunday Carla went into the office for some fi les and found Jack copying some of the software that
A&A used in auditing and consulting. A couple of weeks later, at a dinner party, Carla overheard
a conversation about Jack doing consulting work for some small fi rms. Monday morning, she
asked him if what she had heard was true.
Jack responded, “Yes, Carla, it’s true. I have a few clients that I do work for on occasion.”
“Don’t you think there’s a conflict of interest between you and A&A?” asked Carla.
“No,” said Jack. “You see, these clients are not technically within the market area of A&A.
Besides, I was counting on that promotion to help pay some extra bills. My oldest son decided to
go to a private university, which is an extra $25,000 each year. Plus our medical plan at A&A
doesn’t cover some of my medical problems. And you don’t want to know the cost. The only way
I can afford to pay for these things is to do some extra work on the side.”
“But what if A&A finds out?” Carla asked. “Won’t they terminate you?”
“I don’t want to think about that. Besides, if they don’t find out for another six months, I may be
able to start my own company.”
“How?” asked Carla.
“Don’t be naive, Carla. You came in that Sunday. You know.”
Carla realized that Jack had been using A&A software for his own gain. “That’s stealing!” she
said.
“Stealing?” Jack’s voice grew calm. “Like when you use the office phones for personal longdistance calls? Like when you decided to volunteer to help out your church and copied all those
things for them on the company machine? If I’m stealing, you’re a thief as well. But let’s not get
into this discussion. I’m not hurting A&A and, who knows, maybe within the next year I’ll become
a partner and can quit my night job.”
Carla backed off from the discussion and said nothing more. She couldn’t afford to antagonize her
boss and risk bad performance ratings. She and Frank had bills, too. She also knew that she
wouldn’t be able to get another job at the same pay if she quit. Moving to another town was not an
option because of Frank’s business. She had no physical evidence to take to the partners, which
meant that it would be her word against Jack’s, and he had 17 years of experience with the
company.
Question(s):
1. Identify the ethical issues in this case. (600 words)- 5 Marks
2. Assume you are Carla. Discuss your options and what the consequences of each option might
be. (Minimum 2 options & 2 consequences, 400 words)- 3 Marks
3. Assume you are Jack. Discuss your options. (At least 2 options, 300 words)-2 Marks
Rubrics for grading:
Q. No Criteria/ achievement Good mark
levels
Student should explain
the ethical issues in
this case. 600 words.
1.
Average Mark
Low Mark
Good and clear
explanation of
the ethical issue
is discussed with
proper
references.
Good and clear
explanation of
the ethical issue
is discussed
without proper
references.
Student does
not examine the
ethical issues
related to the
case.
Marks: 5
Marks: 2.5
Marks: 0
2
3
Students should point
out the options from
Carla’s point and
discuss
the
consequences of each
option might be. 400
words.
Options are
clearly explained
along with the
consequences
for each option
with proper
references
Student explains
only one Option
with
consequence or
only two options
without the
consequences
and no
references are
provided.
Marks: 3
Marks: 1.5
Students should point Options are well
out the options from explained from
Jack’s point of view. Jack’s point of
300 words.
view with proper
references.
Options are
provided but not
clearly explained
and no
references are
provided.
Marks: 2
Options and
consequences
are not clear,
and the
explanation is
incomplete.
Marks: 0
No options are
given.
Marks: 0
Marks: 1

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