Ethics Paper

Description

You were hired to do a cost analysis report for Project Alpha, a new vaccine.  Your analysis included an Activity Based Costing report done by Vu.  At a recent meeting, you gave Vu and the factory manager your estimate that the delay to Project Alpha will be a minimum of three months. You indicated that extra overhead costs under ABC are likely to be 4 to 5 million dollars. Vu asked your team to begin working on a formal report specifying detailed recommendations. While still incomplete, the report appears certain to support your estimates.  You are aware that the group is rumored to have pressure from the government. You assume that the situation with Project Alpha is likely to contribute to world-wide vaccine shortages and to be seriously detrimental to the company’s financial position. One week before the final version of the report is due, you receive a surprise telephone call from the company’s CFO. He explains that he is about to enter a board meeting and needs to know a date for delivery of the report on Project Alpha. Late the previous evening, Vu had informed the CFO that your firm had been asked to provide the report. The CFO says: “I appreciate that you have only just started, so there are no reliable estimates yet. But Vu mentioned that Project Alpha could incur around 4 to 5 million dollars in extra costs, with income delayed by perhaps six to eight weeks. Vu will not be at board meeting, as she must attend a family funeral.  Since Vu will not be in the meeting, there is no need to mention the extra costs and the delays at this time.” Based upon the IMA Ethical Standards, is the CFO’s request ethical?  Write an essay of at least 5 paragraphs stating and supporting your decision, including how you think you should do regarding the CFO’s request.

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