Ethics and Governance From Bad to Worse Case Study 2022

Running Head: ETHICS AND GOVERNANCE
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FROM BAD TO WORSE

ETHICS AND GOVERNANCE 2
Executive summary
The Report is prepared on the Case Study” From Bad to Worse”. The report is about solving the
case study from an ethical perspective. In the first part of the report the ethical theories such as
deontological and utilitarianism is applied to the behaviors of the characters. In the second part,
the AAA model of ethical decision-making is used and in the last part the APES 110 code of
conduct, which includes principals, threats and safeguards for the professional accountant are
discussed.

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Contents
Introduction.................................................................................................................... 4
CASE STUDY: FROM BAD TO WORSE............................................................................. 4
Part A: Application of ethical theories............................................................................... 4
Mr. Goodrich’s Behavior according to the theory of Egoism.................................................4
Mr. Goodrich’s Behavior according to the theory of Utilitarianism.........................................5
Mr. Arnold’s Behavior according to the theory of Utilitarianism............................................5
Mr. Arnold’s Behavior according to the Deontological theory...............................................6
Part B: AAA Ethical Decision making Model used by Mr. Goodrich.........................................6
Part C: Application of APES 110..................................................................................... 8
Conclusion................................................................................................................... 10
Bibliography................................................................................................................ 11

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Introduction
A company faces various ethical dilemmas in its workings. These ethical issues arise due
to the lack of knowledge of ethics or the insincerity of the employee for its applications. The
ethical issues, which arise, are inevitable from the organization. The most important thing that
matters is how the management takes the decision when such unethical issues arise. In the case
study, Mr. Goodrich who is the CEO of the company is faced with the dilemma to take the
ethical decision regarding the exploitation of labor union. The following report will be discussing
the application of ethical theories to the case study in its first section and the usage of AAA
model of ethical decision making in the organization in the section B. It also discusses about
APES 110 Code of ethics for professional accountants and its application according to the case-
study in section C.
CASE STUDY: FROM BAD TO WORSE
Part A: Application of ethical theories
Mr. Goodrich’s Behavior according to the theory of Egoism
The theory of egoism is concerned with an individual whose primary motive is
satisfaction of his wants and desires (Gates, 2013). The theory has two aspects, which are
descriptive and normative. The descriptive aspect is concerned with that an individual’ interests
act as a motivating factor for performance and the normative aspect is concerned with that
individuals should stay motivated regardless of what the motivating factors (Overall &
Gedeon, 2019). The behavior of Mr. Goodrich was motivated by his great personal ambitions.
In the beginning of the case, it was described that Mr. Goodrich wants to portray himself as a
distinctive personality to the visitors, which was reflective of his self-obsession. According to the
egoism theory, Mr. Goodrich reflected self-obsession in his attitude. When the Amanda and
Arnold communicated to him regarding the 6$ million fines to Fair work Commission for the