Stakeholder, Ethics, and Decision-Making in Accounting Scenario

This assignment analyzes a scenario involving two accounting students, Vicky and Beck, and an ethical dilemma concerning the purchase of a textbook. The assignment identifies Vicky as the primary stakeholder, given her reliance on Beck to purchase the book with her funds. It outlines the ethical issues at play, including Beck's dishonesty and lack of transparency by not informing Vicky about the cheaper, used textbook option, and his questionable decision-making process. The assignment also discusses Beck's actions and suggests alternative approaches, emphasizing the importance of honesty and ethical behavior in maintaining trust and integrity in professional and personal relationships. The solution underscores the significance of ethical leadership and the potential consequences of unethical decisions, such as a loss of trust and future problems. The assignment covers topics like stakeholder analysis, ethical issues, and decision-making in a business context.

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Question 1: Who is the stake holder in this situation?
Answer 1: Vicky and Beck are two friends studying in a university having accounting as their
major subject. Some uncertainties occurred at Vicky’s family due to which she has to left for her
home, leaving behind a bill of $100 with beck, so that in her absence beck could buy the
prescribed accounting book for her. The cost of book is $80 for which she has left $100 so that
beck does not face any difficulty in buying the book and on her return he will give back her $20
& her new book. Beck when visited the shop, it came to his notice that most of the students has
returned the new books to the book shop as they have got the second hand copies. The price of
the returned books has been fallen to $65 and they don’t appear to be the returned copies. Beck
made a calculation that if he buys they returned copy for Vicky, she will not be able to know
about the returned copy and beck will earn $15 dollars from all this. Now if we talk about who is
the actual stake holder in this situation then it is Vicky as Vicky has entrusted beck for the
buying of the text and with her money. Beck in this situation has the responsibility of Vicky’s
money and her trust, which he fails to maintain as maybe Vicky will never come to know about
that she was given a returned book for $80 but the moral ethics of beck here shows that he can
cheat any one just for few dollars (Berny 2015). The definition of stakeholder is as follow: A
person who has an interest in something and who is impacted by and cares about how it turns out
(Your Dictionary 2015). In this situation what happened is beck didn’t cared about moral ethics
that he should have cared about his friendship. Beck didn’t even bothered to tell about it to
Vicky; maybe if he had confessed about it to Vicky, there are chances that she shouldn’t have
said anything to him. Here in this situation Vicky expected that she will, at the time of reaching
back to the university will receive a new book from her friend beck, but she didn’t knew that
beck will compromise his ethics just for a little gain of $15. Being the stakeholder in this
situation Vicky’s entrusted her money with beck and she was expecting a better outcome of it,
now if ever she comes to know about it from somewhere, she will never again trust beck for even
a single penny (Adrian 2012). Beck should confess about it, to Vicky as it is just a matter $15
and she will happily forgive him for now, but if he won’t confess then he will invite future
problems for himself (Christine 2014).
Question 2: Outline the ethical issues involved?
Answer 2: As explained in the above question, Beck and Vicky are two friends that are studying
in a university and both having accounting as their major subject. In this question we will discuss
about the ethical issues that are involved in this situation of beck and Vicky. Ethical issues mean
the conflict between choosing the right and wrong. Here beck was the one who had to choose
between right and wrong and he fell for wrong just for $15. The definition of ethical issue is as
follow: An ethical issue brings systems of morality and principles into conflict. Unlike most

conflicts that can be disputed with facts and objective truths, ethical issues are more subjective
and open to opinions and interpretation (Reference 2017). There are different types of ethical
issues that arise in business organizations or in our daily lives. Few of the ethical issues that are
involved in this situation are explained as follow (Carl 2008):
 Fundamental Issue: Fundamental issues whether in a business organization or in our
daily lives has been given a very due importance, as it deals with integrity and honesty of
a person or business organizations (Blog 2013). Integrity means treating every person
with a good and fair manner, so that the person makes new and newer contacts for his
own betterment. Honesty means loyalty towards something or someone. A person must
always be honest, as if he is dishonest towards something or someone, he may achieve a
little advantage for sometime but in long future he will be adversely affected by his
dishonest nature (Ethics 2004). Here in this situation beck is being dishonest towards
Vicky and with his nature he successfully gained $15 from her but it will somehow in
future will be revealed to Vicky and at that time he will not be able to face her.
 Transparency Issue: Transparency issues are those ethical issues which deal with the
transparent nature of a human being (Abel 2015). Here in this situation beck has failed to
be transparent towards Vicky. He didn’t tell her about the actual price of the text book,
only because he wanted to have a short term little gain of $15. If he had tell about it to
Vicky maybe just because of his transparent nature she could have given him the entire
remaining amount as a reward for his transparency and honesty towards her.
 Decision-Making: Decision making is a process of deciding what to do when to do and
how to do and keeping in mind the outcomes of that decision and the people related to
that decision (Johnsons 2007). Decision making is another ethical issue that has mostly
affected the person in power (Mathew 2017), here in the mentioned situation, it was Beck
who was in power with money and this affected him as he failed to make a honest and
trustworthy decision as just for the sake of $15, he made a decision that was unfair
towards Vicky.
Above are the three main ethical issues that are involved in this situation, Beck could have
handled this situation by being honest towards his friend Vicky, but he chose to be remain
unfaithful and unfair just for $15.
Question 3: Discuss what you would do if you were Beck?
Answer 3: The above situation describes that beck was appointed by the responsibility of buying
a text book of accounting from the local book shop for Vicky, as she had to rush to her home for
some urgency. By reaching to the shop beck comes to know about the returned books that looks
like a new book for $65, the new book cost $80. Vicky gave $100 to beck for buying a new book

and was expecting $20 back with a new book, now if we I am beck there will two situations that
I might do:
Situation 1: This situation is as same as the situation that beck is in. Now suppose if I am beck
and I have bought the book for Vicky at $65 (returned book), then I will without any unfair
thoughts will give back all the saved money to Vicky as she will be more than happy that I saved
her $35, in future too she will ask for my help and will entrust me her money and things. In case
I need the money so I will tell Vicky that I have her $15 as I really need it because of some
urgency and will return it to her as soon as possible.
Situation 2: In this situation, I will not buy the second hand returned book, as I will go for the
new book as Vicky has demanded and will give $20 back to Vicky or I will contact Vicky about
the returned books and will ask her confirmation whether she would like to study a returned book
which looks like a newly published one. After confirming and clearing all my doubts I will only
then proceed to buy the book. What beck did in this situation is totally unethical and it is really
unfair towards his friend and he must apologize to her about what he did just for $15. If he
apologize to Vicky, it will not only increase the trust of Vicky in beck but she will be more than
happy to know that she has a true and a real friend, who doesn’t believes in back stabbing or
cheating anyone.
Bibliography
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