Professional Practice in IT: Case Study on Ethical Dilemma Analysis

This case study explores an ethical dilemma faced by Brenda, who discovers data entry errors in a new accounting software used by junior management at a leading city firm. The employees had signed an informed consent for anonymity. The dilemma involves balancing the company's financial interests, the junior management's privacy, and ethical responsibilities. The analysis considers the involved parties (Brenda, junior management, senior management, and shareholders), potential values at stake (integrity, confidentiality, professional behavior, objectivity, and professional competence), and the pros and cons of reporting the error. It also references the ACS Code of professional conduct and ACS code of Ethics and relevant legal frameworks, including Section 181 of the Corporations Act. The study proposes a course of action where Brenda should raise her concerns with the junior management and make recommendations to the company while maintaining confidentiality, safeguarding the interests of both the company and the employees.

PROFESSIONAL PRACTICE IN IT
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ETHICAL DILEMMA 1
Case Study 4
Introduction
Brenda in discharging her duty of observing how junior management uses a new
accounting software at a leading city firm discovers that a majority of the management staff
makes a particular data entry error resulting in lost profits. The employees had signed an
informed consent that stated that they would remain anonymous (Sternberg, and Fiske, 2015).
Ethical dilemma
Brenda was tasked with observing how the junior management uses a new accounting
software. The employees had signed an informed consent that their names would remain
anonymous. By reporting the error to the management might result in punishment of the
junior management while remaining silent will mean that the company continue making
losses at the cost of the shareholders (White 1993).
Interested parties
1. Brenda
2. Junior Management
3. Senior management
4. Shareholders
By reporting reduced profits that are manufactured by the errors, shareholders get
reduced dividends. The assumption here is that despite the reduced profits the company still
manage to meet its financial obligations and that the errors are done intentionally. So, if
Brenda does not report there is no harm as the errors have gone unnoticed for a while without
affecting the company’s’ bottom line (Sternberg, and Fiske, 2015).

ETHICAL DILEMMA 2
Values
The dilemma brings out a question of trust whereby by accepting to take part in the
observation, the junior management expected their names and activities to be kept
anonymous. The company on the other hand hoped that by engaging Brenda to observe how
the software is used would improve the performance of the company (Sternberg, and Fiske,
2015). According to the ACS Code of professional conduct and ACS code of Ethics Brenda
has to take in to account the following values.
1. Integrity: Brenda ought to be fair to all parties that are involved or affected and must
act in a straightforward manner.
2. Confidentiality: Brenda owes a duty of confidentiality to all the staff involved.
3. Professional behavior: Brenda course of action should be in a way that they will not
discredit her professionally or personally.
4. Objectivity: in line with the trust that has being nurtured between the company and
Brenda, and the threat brought about by the new developments during her
observation, she must remain objective.
5. Professional competence and due care: the report she produces in line with the
observation must be a true reflection of what is happening and must meet all the
professional standards.
Apart from the reduced profits, which have gone unnoticed, nobody is being harmed.
Pros and cons
If the issue is reported, then some of the junior managers and all those involved in the
error might be summoned or worse still, they can be fired from their respective positions.
Moreover, if these actions are not reported then it is likely that they may escalate to the point

ETHICAL DILEMMA 3
that they affect the bottom line of the company. Losing their respective jobs will have an
emotional impact on them (Congress, 2017).
With the increased profit margin, the company can decide to increase employee’s
salary or increase production meaning that more people will be employed. Secondly, this will
results to increased profits for the shareholders. Reporting the error will increase the reserve
profits, which means that the company will better be placed in case of any unforeseen
circumstances (Ferrell, and Fraedrich, 2015).
Possible course of actions
Section 181 of the Corporations Act executes a civil requirement on directors and
other officials in an organization to implement their powers and discharge their duties in good
faith, in the best interests of the corporation and for a proper purpose. Failure to execute one’s
duty as a director, the director is open for civil or criminal or a hybrid of the two offences.
Having observed the error that is resulting in reduced profits, Brenda should first raise her
concerns with the junior management. She should explain to the junior management the
implications of their action; she should safeguard the interests of the company and those of
employees’ by putting recommendations of how the situation should resolved. In her report
and without naming names, the report should indicate the possibility of the error or how the
software can be manipulated to indicate reduced profits. A recommendation should be written
to the company that when reporting their financial statements consideration must be given on
the possibility of the error and due diligence taken (Edwards, and Addae, 2015).
In view with the junior management conduct, failure to report the misconduct could
ruin her professional reputation should it ever be discovered. Acting in her best interest and
that of the company, she should report it even though she does not have to mention names.
She must maintain confidentiality. Her loyalty to the employees should not exceed that of the

ETHICAL DILEMMA 4
company as the information could significantly assist the company and those in management
better discharge their duties (White 2013).

ETHICAL DILEMMA 5
References
Congress, E.P., 2017. What social workers should know about ethics: Understanding and
resolving practice dilemmas. Social Work Ethics, 1(3)p.1909.
Edwards, B. and Addae, R., 2015. Ethical decision-making models in resolving ethical
dilemmas in rural practice: Implications for social work practice and education. Journal of
Social Work Values and Ethics, 12(1), pp.88-92.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases.
Nelson Education.
Section 181 of the Corporations Act
Sternberg, R.J. and Fiske, S.T. eds., 2015. Ethical challenges in the behavioral and brain
sciences. Cambridge University Press, 2(1), pp.808-932
White, T. I. 2013. Resolving ethical dilemmas: a guide for clinicians. Lippincott Williams &
Wilkins, 2(1), pp.8-12.