An Ethical Dilemma - What Would You Do?
Mr. Johnson, Owner of VB Accounting Services, has provided youwith an ethical dilemma -- see below. Please review the informationcarefully and provide your response in the form of an essay.
SubmissionGuidelines
Use correct grammar and proofreadcarefully. All references (written and verbal) used to compile theessay mustbe cited. Use an appropriate writingstyle - APA.
During a routine quality control test, Momentum MotorCorporation, a multi-national automobile manufacturer, discoveredan issue with some of its vehicles that could pose serious risks toits customers. After performing extensive research and analysis, itwas determined that the problem is a faulty brake system, whichcould result in a driver losing complete control of his/hervehicle.
Based on the sampling technique employed by Momentum, 5% of theautomobiles that were tested showed the defect. On average, theCompany produces and sells about 3.5 million vehicles per year. 60%of sales are made outside of the United States. After consultingwith its accounting and legal teams, Momentum determined anestimated cost of $4.0 Billion, in parts and labor, to fix allvehicles that could be affected by the faulty brake system.Deciding not to fix the problem could result in accident (whichcould be fatal), lawsuits, etc. Information about the issue has notyet been made available to the public.
Instructions: Answer the followingquestions:
1.Whatis ethics?
2.How might ethics differ acrosscultures, countries, etc.? What do you think are some of thereasons for these differences?
3.What are the factors thatcontributed to the development of your ethics and values?
4.What is the ethical dilemma in thesituation presented above?
5.What are possible options availableto Momentum Motor Corporation for dealing with the situation? Foreach option, identify and discuss how each group of stakeholders(e.g., employees, investors, etc.) could be affected (i.e., bothpositively and negatively). Note: Please considerthe global nature of the Company
An Ethical Dilemma - What Would You Do?
Mr. Johnson, Owner of VB Accounting Services, has provided youwith an ethical dilemma -- see below. Please review the informationcarefully and provide your response in the form of an essay.
SubmissionGuidelines
Use correct grammar and proofreadcarefully. All references (written and verbal) used to compile theessay mustbe cited. Use an appropriate writingstyle - APA.
During a routine quality control test, Momentum MotorCorporation, a multi-national automobile manufacturer, discoveredan issue with some of its vehicles that could pose serious risks toits customers. After performing extensive research and analysis, itwas determined that the problem is a faulty brake system, whichcould result in a driver losing complete control of his/hervehicle.
Based on the sampling technique employed by Momentum, 5% of theautomobiles that were tested showed the defect. On average, theCompany produces and sells about 3.5 million vehicles per year. 60%of sales are made outside of the United States. After consultingwith its accounting and legal teams, Momentum determined anestimated cost of $4.0 Billion, in parts and labor, to fix allvehicles that could be affected by the faulty brake system.Deciding not to fix the problem could result in accident (whichcould be fatal), lawsuits, etc. Information about the issue has notyet been made available to the public.
Instructions: Answer the followingquestions:
1.Whatis ethics?
2.How might ethics differ acrosscultures, countries, etc.? What do you think are some of thereasons for these differences?
3.What are the factors thatcontributed to the development of your ethics and values?
4.What is the ethical dilemma in thesituation presented above?
5.What are possible options availableto Momentum Motor Corporation for dealing with the situation? Foreach option, identify and discuss how each group of stakeholders(e.g., employees, investors, etc.) could be affected (i.e., bothpositively and negatively). Note: Please considerthe global nature of the Company
