Business Ethics Case Study: Ethical Dilemma and Decision-Making

This case study, titled 'The Auditor's Dilemma,' presents an ethical challenge faced by Alison, an auditor who discovers fraudulent activities involving the head of purchase, Greg Berg. Alison is torn between her duty to report the theft and her loyalty to her employer. The analysis employs various ethical frameworks, including Act Utilitarianism, Kantian ethics, and Rule Utilitarianism, to evaluate the situation. The study concludes that Alison should prioritize her duty to report the unethical behavior, aligning with Kantian ethics. The case study also considers the implications of Alison's actions and the importance of upholding ethical principles in the workplace. The analysis considers the perspectives of both Alison and Greg, highlighting the complexities of ethical decision-making. References from Bowie (2017) and Hartman, DesJardins & MacDonald (2014) are provided to support the analysis.

Running head: BUSINESS ETHICS CASE STUDY
BUSINESS ETHICS CASE STUDY
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Author Note

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In the given case study, ‘The Auditor’s Dilemma’, it is observed that Alison is
experiencing an ethical dilemma. Alison has inspected and observed that theft of money is taking
place in the organization via wrongly dated invoices and the head of purchase, Greg Berg is
aware of the incident and is actively involved in it as well. She is in conflict regarding whether
she should do perform her duty or be loyal to her employer. Alison is aware of the fact that she
had agreed to abide by the IIA code of ethics and as an auditor, it is her responsibility to analyze
whether the company’s financial system is adequate as well as effective. Therefore, there are
various factors she must consider while taking an ethical decision which would help her to make
the right choice (Hartman, DesJardins & MacDonald, 2014).
The analysis of the case study from the Act Utilitarian perspective reveals that it would
be unethical for Alison to pay the invoices early. If Alison agrees to provide her assistance to
Greg, she would be affecting the sales process of the company since the sales team would not be
performing up to the mark for fulfilling the quota requirement. Apart from this, the chances of
this theft being discovered is high and would have a great negative impact on Alison’s career.
In the event of Alison not reporting this theft, she would be directly violating the Kantian
ethics. The Kantian ethics state that an individual must always abide by the code of ethics and
not deceive her superiors.
The analysis of the case from the Rule Utilitarian perspective reveals that Alison has
many obligations to follow which include company policies, accounting codes and ethics,
company laws, and so on. The Rule Utilitarian theory states that an individual is morally obliged
to follow those rules, which have a positive impact or consequence. However, it is difficult to

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arrive at a conclusion regarding the consequence until the effect of following the rules in
analyzed among all the individuals working in the organization.
The analysis of the case according to the prima facie duties stated by Ross, it reveals that
both Alison and Greg are justified from their individual viewpoint. However, considering the
weight of the activity taking place, both the individuals are aware that the practice is unethical in
nature. Therefore, it is Alison’s job to refuse the payment of the invoices and report the activity
to the higher authorities.
It can be concluded by stating that the Kantian theory may be the most effective in
deciding a course of action that should take place. Alison has all the right to treat her employer
and fellow employees as a means since her real duty lies with that of reporting to the superiors of
the company (Bowie, 2017). Taking part in the theft would mean that Alison has failed in
upholding her principles and performing her job, which means to be doing wrong with her
superiors rather than her employer or co- workers.

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References
Bowie, N. E. (2017). Business ethics: A Kantian perspective. Cambridge University Press.
Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2014). Business ethics: Decision making
for personal integrity and social responsibility. New York: McGraw-Hill.