MGMT 13: Ethics & Governance in Australia - Case Study Report

This report provides a comprehensive analysis of a case study involving Mr. Goodrich and Arnold, focusing on ethical dilemmas within a company facing financial challenges. The report explores ethical theories such as utilitarianism, egoism, and deontology, evaluating the actions and motivations of key figures. It applies the AAA ethical decision-making model to propose solutions, and assesses ethical threats and safeguards using the APES 110 model. The analysis delves into the complexities of ethical leadership, decision-making processes, and the impact of various ethical approaches on the company's outcomes, offering insights into how to navigate challenging business situations while upholding ethical standards.

Running Head: MANAGEMENT 0
ETHICS & GOVERNANCE
AUSTRALIA
[DATE]
[Company name]
[Company address]

MANAGEMENT 1
EXECUTIVE SUMMARY
In this report all the important theories of ethics i.e. Utilitarian, Egoism and Deontology will be
determined and explained using a case scenario of Mr. Goodrich and Arnold who were the
essential members of the company. Where Mr. Goodrich was the COO of the company and
Arnold was in the financial department. Ethics is something which is related to good or bad
perspective about a thing which may vary from person to person and situation to situation. All
the behavioral pattern of the different characteristics of the case study will be analyzed and AAA
model and APES 110 model will be used on the basis of the assumptions and will be tried to
reach up to an ethical decisions.

MANAGEMENT 2
Table of Contents
Introduction....................................................................................................................................3
PART A...........................................................................................................................................3
APPLIED THEORIES OF ETHICS...........................................................................................3
PART B...........................................................................................................................................7
Application of AAA ethical decision making model...................................................................7
PART C...........................................................................................................................................9
Application of APES110................................................................................................................9
CONCLUSION............................................................................................................................11
References.....................................................................................................................................12

MANAGEMENT 3
Introduction
Ethics is considered as that branch of philosophy which is involved in defending and
recommending those conducts which may be considered as wrong or right, good or bad. The
main intention of ethics is to give values to ones thought and creates a sense of justice, crime,
right, wrong, good, evil etc.
So with raising up with this report the varied interactive patterns of Mr. Goodrich and
Arnold given in the scenario will be analyses by means of diverse policies of ethics in the first
part. Second part will be based upon the statement that Mr. Goodrich is judiciously hearing the
report completed by Arnolds and He has suggested few ethical steps which could be taken by
their company so to eradicate the existing problems and all these will be done by using AAA
ethical decision making body. The third part will be covering the APES 110 model for reflecting
all the threats faced by Arnold and the safeguards awarded for that and all those will be
connected to the principles of the model to be used. Lastly there will be a concluding statement
covering the summary of the entire report so made.
PART A
APPLIED THEORIES OF ETHICS
Mr. Goodrich and egoism
Pursuing of self-interest without having any obligation for promoting the interest of
others is something called as theory of egoism. It can be considered as a theory having normative
perspectives whose basic concern is to monitor the in which one behave in a particular situation.
It is very unlike from the psychological and the rational egoism. This theory states that it is the

MANAGEMENT 4
moral obligation of every agent to help others. This concept is further alienated into three
categories and the first one out of them is individual's ethical egoist, which is used to notice the
persons i.e. they must go for doing the things which could gain profit for them as individuals
“the feeling of my”. Ethical egoism can be considered as the second one, where it can be
requested that every individual should try to act for its own profit but must not interfere in
between that for the others while doing certain act or not. The third one out of them is the
worldwide egoist related to ethics where it can be claimed that every individuals must act in a
certain way which may be vital for one’s own-interest.
Mr. Goodrich the COO of the company was a considered as a man full up of ego and
aggression, but his basic motive was to satisfy its own interest, which could easily be done
without hampering the interest of other individuals. He was only interested in promoting and
without any uncertainly intended in acquiring advancements for his own company and for this
purpose he was all set to become unethical and bare all the penalties. According to ethical
egoism theory, actions of Mr. Goodrich can be considered as ethical and hence can be considered
as different from that of psychological and the rational ones.. Mr. Goodrich was least bothered
about the interest of the workers he was simply stuck up on a point that his company’s name
must not be ruined and for that he was ready to go to any unethical way (Overall, 2016)..
Mr. Goodrich and utilitarianism
This theory of ethics regulates right from wrong and its main focus is on the occurring
result. It can also be called as consequentialism (Hollander, 2016). . The basic aim of this
theory is to provide the maximum amount of good to the maximum number of the persons. J
Bentham was considered as the founder of this theory and father described the term utility as the

MANAGEMENT 5
property in an object which always wants to attain benefit, pleasure, good and happiness and
tries to avoid unhappiness, pain, mischief etc. (Mill, 2016).
The behavior of Mr. Goodrich can be considered as fulfilling all the contents of this
theory and this can be very clearly noticed via an example that his company was undergoing
crises period where they were unable to give off salaries to the workers working in the factories
but his intention was just to protect the name of his company. He was ready to threaten Arnold
and force him to not disclose any fact regarding the status of his company to the world outside.
His intention was in no ways to hurt others but was only to attain the benefit for himself and d
the company.
He was indulged in taking up difficult conclusions and his attitude was disliked by many
people but the theory of utilitarianism that focusses on giving bulk to the best result of a
consequence for the larger public by confident choices. Though Goodrich’s behavior in the
direction of the individual persons who may not be liked but with this his analysis were
frequently taken as to the best ones in relation with the profitability of the company.
Arnold and utilitarianism
Utilitarianism theory is a part of normative ethics whose basic concern is to focus on the
outcomes of the ethical decision so can also be called as theological or consequential theory.
Where the theological reasoning is consistent with the fact that ethical decisions are based upon
ends or the outcomes of the actions so done. Whereas the consequentialist theory is that outcome
whose action done was not good but the outcome was really very good (Riley, 2016).
So, in the given case study it was reflected that Arnold was a man of ethics. He was the
head of the finance department in the company. He knew that his company was undergoing a
difficult situation and on the other side he was also aware of the possible consequences that may

MANAGEMENT 6
occur if that news goes to his boss Mr. Goodrich. But it was really very important to inform him
that what the country is going through in the present time. There are a lots of crises which are
been faced by their company now and they were not been even been baling to give off the wages
to the employees working.
He was ready to face Goodrich’s anger and was also seem to be very dedicated towards
his work. Which can be proved by an example i.e. upon been asked by the boss he got ready to
present a report in the very next morning and he did his work remaining awoke the entire night.
From the above, it can be concluded that the behavior of Arnold' was absolutely focusing on the
ethical theory of utilitarianism in that manner in which he used to be active always for facing the
arising penalties as well as for attaining the superb outcome for one self and for the company as
well.
Arnold and deontology
Deontology is a Greek term which means obligation or duty. It is a part of normative
theory focuses on a question that whether the action done under a series of rules is itself right or
wrong or rather are based upon the consequences of the acts. It can also be described as that duty
or obligation which are based on the rules of ethics. This theory of ethics can also be contrasted
with that of utilitarianism or the virtue ethics because here action is much more important than
that of the consequences or the result (Koven, 2015).
Behavior of Arnold's in this scenario can be considered as approximately that which can
highlight his behavior. There was no doubt that he was very much loyal towards his work and
this can very clearly be reproduced via his actions and calm accents all through the whole chat or
the conversation of the boss. He was trying to keep forward his point of view in very different
and sensitive way.

MANAGEMENT 7
No doubt the complete of the case scenario reflected the dedication that Arnold had
towards his work he was all set to face every difficult situation was ready to skip his night rest
and was ready to search the number of ways possible to overcome with the difficult situation
faced by the company. Fear of boss was secondary and accomplishing of duty was the primary
interest of Arnold.
PART B
Application of AAA ethical decision making model
AAA stands for American Accounting Association which provides or suggest seven
logical steps for reaching up to an ethical decision raised up in a particular situation. In this case
where a company whose COO is Mr. Goodrich is presumed to hear very carefully to the
suggestions made by Arnold the head of finance department at the time of crises so faced by the
company. Their company at this particular period of time is going through a lots of crises and are
also unable to pay wages to workers who were working for the factory. They need to reach an
ethical decision. So the following are the seven steps taken by using AAA model are:
Step 1 Facts of the case
The organization was undergoing the state of crises and were not been able to give the
salaries to their workers. So Arnold has come up with a few ethical suggestions to overcome
them with peace and grace.
Step 2 Ethical issues faced in the case
Though the organization was unable to pay of the wages to their workers working in the
factory, nonetheless Mr. Goodrich still was stuck at the point that he would not take up any step

MANAGEMENT 8
which could through impact on the company’s name at any cost. This was the basic ethical issue
which was faced in this case study.
Step 3 Norms, principles and values related to the case study
All the members employed in the company are required to follow the rules, guidelines
and the principles so framed by the company. Hard or the tough steps must be taken against the
ones who do not obey or follow any one of them. Ethics is considered as an essential part of
every profession and all the professionals must go through properly to all the guidelines
mentioned by the companies in relation to ethics.
Step 4 the alternative course of action
Arnold has come up with the alternate suggestion in relation to the situation so faced by
the company are as follows first one is that they must have to wait for some time without doing
anything or informing any to any other and sit and see the consequence of their done acts, it may
be a time taking process and the consequence to bare may not be forecast. Second one is to
inform the bank and the welfare commission concerning the entire condition of the company so
that they could also get few time more to gather financial aid and pay back all the debts, as well
as may also get a aid for overcoming.
Step 5 best course of action to be considered
Mr. Goodrich is to come up with the wise decisions. Which must be betterment of him as
individual and also for the name of the company. Personal interest must be kept aside for a while
and benefit of those workers must be his basic concern factor.
Step 6 consequences of the action so to be done
If Mr. Goodrich and Arnold decides to sit and wait for some time that to without doing or
taking any action just to see that what may happen then it may be a long term process which may

MANAGEMENT 9
consume a lot of time. But if second suggestion is taken into consideration then there are
possibilities that they may get some time to repay all their debts and also may be imposed to
some penalties.
Step 7 decision
the first option i.e. to inform the bank and the welfare commission about their present situation
and try to convince them for providing them with some time in which they can pay off their
entire debt and also reach or come up with better business techniques and ideas.
This model is a very influential and a powerful one and if used properly can also turn up
to be beneficial also.
PART C
Application of APES110
APES stands for Accounting Professional and Ethical Standards. Its board was
established in the year 2008 whose main concern was on CPA i.e. chattered Professional
Accountants. The basic objective of this code was to provide a framework and assist the
members to work efficiently and follow all the guidelines of the code. This code applies to all the
members who are in public practice and the businesses.
In this case study the APES 110 will be applied on the basis of an assumption that Arnold
who was a associate of CPA Australia. APES code will discuss about all the threats and the
protections faced by Arnold in this scenario and will also throw its focus on the principle
connected with the case of Arnold.
The basic principles of this code are as follows

MANAGEMENT 10
Integrity- it focuses on the honesty and truthfulness of an act to be followed by the
accountants. In this case also Arnold was expected to maintain the integrity of the position he
was on and it is absolutely reflected in this case study that he was dedicated towards his
profession.
Professional skills- all the accountants must have that skills to talk and deal with the
clients in such a way that they get impressed.
Confidentiality- Accountants are expected to preserve the privacy of the material of the
company as far as possible. In this case Mr. Goodrich was seen to threaten Arnold to keep the
situation of the company very confidential or else he would have to bare penalties for that.
Professional behavior- It is considered as the association amongst the consumer and the
professionals which is to be kept very respectful and further also states that just having a bare
knowledge about the profession is not enough one must also understand and follow all the
necessary guidelines. Professionals are required to be away from all the types of quarrels may it
to be with the contemporaries or other customers.
Arnold faced the following threats or pressure:
Self Interest- this term is defined as the separate person who can disregard the interest of
people largely over its own and personal view. In this case study Mr. Arnold who was being
threatened by Mr. Goodrich to give up with his own interest that is Arnold was a man of
principle and he was asked to go against his principles and take up an unethical way just to
protect the name of the company forgetting the status of the employees working within.
Familiarity- here an individual works within an institution and generates a family kind of
association with its head or the patrons due to its being allied with them for the longer time

MANAGEMENT 11
period. In the scenario also Arnold was working for the company for a very long time so he can
feel that pressure that one of his wrong step may also destroy the entire name of the company.
Intimidation- This term here means that a person who can be hassled by the expert for not
to act for the betterment of the public. Arnold was also forced to keep his mouth shut and not to
get open up to the outer world regarding the condition of the company that they were undergoing
the crises type situation and also were not able to give salaries to their workers.
Therefore for overcoming these threats, the code of APES 110 has implemented a few
safeguarding measures. Basically here in this code there are two protecting means provided and
the claiming for protection is the first one amongst them and till the time it is detached i.e. have a
passable acquaintance for the framework of regulatory body i.e. APES110 therefore, this
scenario where, The professional accountant i.e. Arnold who was also considered as the
registered member of the organization, and who also have a suitable information regarding the
conducting code, on the basis of his unwillingness for not been disclosed with the issue.
Detaching itself from profession is the next or the second issue in which is to protect the
company and its operational environment and this can be accomplished only with ethical theories
and measures: one has the power to himself for going into the cell shaped for protecting the
workers right unswervingly and formulate a complaint against the stuff as the way it was there.
Individual level preservation can also become one of its essential part where it was required to
take up a strong for discriminating amongst correct or not therefore through this scenario also
Arnold also have to be robust enough so that can stand for own self.
CONCLUSION
As per the above report and the case study it can be accomplished that ethics is that base
which creates a sense of morality and gives values to one’s decision. It helps an individual to