ACCT19083 Final Assignment: WorldCom Case Study and Ethical Analysis

This assignment analyzes the ethical and corporate culture failures within WorldCom. It examines whether informed consent was given for accounting adjustments, and if abuse of official position occurred. The analysis highlights the unethical practices of top management, including the CFO and Financial Controller, who instructed mid-level accountants to manipulate financial data to create a misleading financial statement. The assignment explores the negative corporate culture that fostered unethical behavior, leading to financial fraud and the company's eventual bankruptcy. The student uses references to support their arguments, examining concepts like informed consent, abuse of power, and the importance of ethical leadership in preventing such scandals. The document emphasizes the importance of ethical conduct in accounting to ensure accurate financial reporting and maintain stakeholder trust. The student explains the concept of informed consent, the abuse of official position, and the culture of the organization. The assignment also discusses the consequences of these actions, including the destruction of the company's reputation and the legal repercussions for those involved.

ACCT19083 Final Assignment
Term 2, 2017
Student ID: Student name……………………………………………………..
Marker’s overall comments: The markers may include any
final comments here.
Overall Mark (Total) out of 40:
0

Part A Question 1: Did Buddy, Troy, and Betty give informed consent to making the requested accounting
adjustments? Explain your answer. You should also explain the concept of "informed consent" before
answering the question.
Informed consent is when an individual has the decision to do make willingly whether to participate in a particular
action in the organization. In accounting, it is essential to follow international accounting code of ethics to ensure
that there is a smooth flow of operation for the organization (Goetsch & Davis 2014). The act of getting
information to change something in accounting requires a proper evaluation of the effects to the stakeholders and
shareholders of the organization. Adequate information about accounting needs to be considered when making
adjustments to the financial data in the system. The change of expenses or account receivable for a company has
legal consequences to the individual involved as it offers misleading information to the shareholders of the
company. It is essential to state the right amount in accounting to reduce negative consequences of adjusting
accounting figures. Overstating and understating require informed consent from the top management as it affects
the performance of the company (Smith 2017). Incorrect capital expenses by the accountants provide an
inaccurate financial report which is not reliable to the shareholders and stakeholders of the company.
Buddy, Troy, and Betty had the informed consent to adjust the accounts of WorldCom from the Chief Financial
Officer Scott Sullivan and Financial Controller David Myers. This was to make the stakes of the company appear
higher to the stakeholders of the company while the company was experiencing loss. The manual adjustment of
accounts negatively impacted the business as it had to file for bankruptcy from the fraudulent scheme of changing
accounting figures. The accountants were required to reduce the expense to meet the earning expectations of the
company. Manipulation of accounts would provide wrong information to the shareholders of the company
(Zadek, Evans & Pruzan 2013). Buddy, Troy, and Betty were mid-level accounts who were required to take orders
from the top management with the decision being unethical to the operation of the business. Physically adjusting
the financial result would lead to jail terms to the people who were involved in the process. Buddy, Troy, and

Betty were uncomfortable to make the account adjustments as it is not ethical, but they had informed consent
from the top management of the company where they had to follow the stated orders to keep their jobs. Conflict
of interest between the organization management and staff requires being handled through the use of a proper
ethical policy (Bampton & Cowton 2013). Incorrect capital expenses about the company make it hard to identify
the real value of the company making it hard to come up with a valid financial decision.
References:
Bampton, R., & Cowton, C. J. (2013). Taking stock of accounting ethics scholarship: A review of the journal
literature. Journal of Business Ethics, 114(3), 549-563.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ:
Pearson.
Smith, M. (2017). Research methods in accounting. Sage.
Zadek, S., Evans, R., & Pruzan, P. (2013). Building corporate accountability: Emerging practice in social and ethical
accounting and auditing. Routledge.
Marker’s Comments: The marker will provide feedback here. Mark (5):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very
high level of detailed knowledge of
core concepts by providing a very
high level of analysis. Utilises
current, appropriate and credible
sources.
Demonstrates a balanced and high
level of knowledge of core
concepts by providing a high level
of analysis. Utilises mostly current,
appropriate and credible sources.
Demonstrates a good level of
knowledge of some of the core
concepts by providing some level
of analysis. Utilises some current,
appropriate and credible sources.
Demonstrates limited knowledge of
core concepts by providing a
limited level of analysis. Utilises
few current, appropriate and
credible sources.
Demonstrates little, if any,
knowledge of the core concepts
with extremely limited, if any,
analysis. Utilises little, if any,
current, appropriate and credible
sources.
Quality of writing at a very high
standard. Paragraphs are
Quality of writing is of a high
standard. Paragraphs are mostly
Quality of writing is of a good
standard. Few grammar, spelling
Some problems with sentence
structure and presentation
Quality of writing is a very poor
standard so barely

Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
coherently connected to each
other. Correct grammar, spelling,
and punctuation.
well structured. Few grammar,
spelling and punctuation mistakes.
and punctuation mistakes. Frequent grammar, punctuation
and spelling mistakes. Use of
inappropriate language.
understandable. Many spelling
mistakes. Little or no evidence of
proofreading.
The assessment presents a
detailed and focused summary of
the ideas presented; drawing clear
and well-thought-out conclusions.
The assessment presents a fairly
detailed and focused summary of
the ideas presented; drawing fairly
clear and well-thought-out
conclusions.
The assessment presents a
somewhat detailed and focused
summary of the ideas presented;
providing some evidence of
conclusions.
The assessment provides limited
detail with no clear summary of the
ideas presented; drawing limited
conclusions.
The assessment fails to provide
any clear evidence of the ideas
presented; drawing no clear
conclusions.

Part A Question 2: Did Scott and David engage in an abuse of their official position? Explain your answer. In your
answer, you should also explain what "abuse of official position" means regarding business ethics.
Scott and David engaged in abuse of official office by asking the mid-level accountants to make adjustments to the
account which is unethical and illegal. Misuse of official position is when a leader offers misleading
orders to the junior staff which is compromising (Drury 2013). Scott was the Chief Financial Officer,
and David was the Financial Controller of WorldCom who offered the adjustment of accounts to
provide a misleading financial statement. The action was risky to the accountants as they have to
reduce million of dollars of expenses to meet the required financial statement of the organization.
This fraudulent scheme was aimed at improving the net profits for the company which was making
losses from business operations. After discovering the scheme, there was the reduction of the value
of company shares. The reputation of the company was destroyed and had to be declared bankrupt
despite the changes of values in the financial statement (Brigham 2014). The accountant was
vulnerable as they had to follow the orders from their bosses Scott and David so that they can keep
their jobs. The situation was unethical, but the accountants had to follow the rules to distort the
accounting figures in the system. The physical changes were done on over hundred million dollars
without any support of making adjustments to the accounts.
The accountants were required to offer the financial reports in a few days to the public by making physical
adjustments to the accounting values. The financial statement provides the company’s position which
is essential in deciding that particular industry. Top managers are required to follow the set company
policy when giving orders to the junior staff to reduce cases of abuse of position. Business ethics
makes it possible for the leaders to delegate actions that will provide a smooth flow of the company
(Rostamzadeh, Govindan, Esmaeili & Sabaghi 2015). The instruction of physically changing financial
led to ethical dilemma to the mid-level accountants. The supervisory role of an organization requires
the use of proper skills and knowledge that are ethical for honest practices in the organization.
Appropriate use of power by top managers improves the morale of other employees as the functions

are highly acceptable in the business environment (Kianto, Ritala, Spender & Vanhala 2014). Ethical
enforcement of regulation in business provides a competitive advantage in the market. Therefore
moral leadership requires the following of set obligation to reduce legal issues from production and
financial reporting.
References:
Brigham, E. F. (2014). Financial management theory and practice. Atlantic Publishers & District.
Drury, C. M. (2013). Management and cost accounting. Springer.
Kianto, A., Ritala, P., Spender, J. C., & Vanhala, M. (2014). The interaction of intellectual capital assets and
knowledge management practices in organizational value creation. Journal of Intellectual Capital, 15(3),
362-375.
Rostamzadeh, R., Govindan, K., Esmaeili, A., & Sabaghi, M. (2015). Application of fuzzy VIKOR for evaluation of
green supply chain management practices. Ecological Indicators, 49, 188-203.
Marker’s Comments: The marker will provide feedback here. Mark (5):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very
high level of detailed knowledge of
core concepts by providing a very
high level of analysis. Utilises
current, appropriate and credible
sources.
Demonstrates a balanced and high
level of knowledge of core
concepts by providing a high level
of analysis. Utilises mostly current,
appropriate and credible sources.
Demonstrates a good level of
knowledge of some of the core
concepts by providing some level
of analysis. Utilises some current,
appropriate and credible sources.
Demonstrates limited knowledge of
core concepts by providing a
limited level of analysis. Utilises
few current, appropriate and
credible sources.
Demonstrates little, if any,
knowledge of the core concepts
with extremely limited, if any,
analysis. Utilises little, if any,
current, appropriate and credible
sources.
Quality of writing at a very high
standard. Paragraphs are
coherently connected to each
other. Correct grammar, spelling,
and punctuation.
Quality of writing is of a high
standard. Paragraphs are mostly
well structured. Few grammar,
spelling and punctuation mistakes.
Quality of writing is of a good
standard. Few grammar, spelling
and punctuation mistakes.
Some problems with sentence
structure and presentation
Frequent grammar, punctuation
and spelling mistakes. Use of
inappropriate language.
Quality of writing is a very poor
standard so barely
understandable. Many spelling
mistakes. Little or no evidence of
proofreading.

Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
The assessment presents a
detailed and focused summary of
the ideas presented; drawing clear
and well-thought-out conclusions.
The assessment presents a fairly
detailed and focused summary of
the ideas presented; drawing fairly
clear and well-thought-out
conclusions.
The assessment presents a
somewhat detailed and focused
summary of the ideas presented;
providing some evidence of
conclusions.
The assessment provides limited
detail with no clear summary of the
ideas presented; drawing limited
conclusions.
The assessment fails to provide
any clear evidence of the ideas
presented; drawing no clear
conclusions.

Part A Question 3: Based on what you have read in the case study, describe the corporate and ethical culture of
WorldCom. You should then perform some research into WorldCom's culture and explain what others have
reported.
Corporate culture is the behavior of employees in an organization which can be either positive or negative culture
(Guiso, Sapienza & Zingales 2015). It is vital for a team to focus on a positive corporate culture to improve ethic
practices during production. WorldCom had a negative corporate and ethical culture as the top management
lacked the moral leadership to govern daily operations. The CFO of the company Scott Sullivan and Financial
Controller David Myers instructed the accountants to change the number to come up with a desirable financial
report. Moral leadership is required in an organization to handle unethical dilemmas when performing duties
regarding an organization. The adjustments of hundreds of millions of dollars would provide inaccurate financial
report to the report (DeBacker, Heim & Tran 2015). Buddy, Troy, and Betty had to follow the instruction to avoid
being replaced by the organization which would make it hard to meet their daily needs. WorldCom was an
unethical organization as the managed pressured the employees to act unethically to come up improved earnings
of the company. The negative corporate an ethical culture in WorldCom led to lack of teamwork to come up with
a proper decision that will improve the performance of the organization. For a business to succeed the corporate
and ethical culture is required to be positive for a corporate culture that will enhance teamwork and collaboration
for an increased profitability from production (Bebbington, Unerman & O'Dwyer 2014). Employee empowerment
is essential in developing a positive corporate and ethical culture to handle various problems in the organization.
Ethical culture requires the staff to adhere to the commitments to the organization for the achievement of set
personal and corporate goals. The top managers are needed to develop strategies that will ensure an extended
survival of business in the dynamic external environment. The appropriate approach reduces unethical cases such
as manipulation of financial figures in WorldCom. Positive corporate and ethical assures quality financial reporting
to the public (Carroll 2015). Transparency and communication of plans are essential in handling ethic dilemmas in
the company. The actions implemented by the management require considering legal requirements for a

continuous development of the business. Equality is vital in improving the corporate and ethical culture of an
organization to deal with issues facing the company ethically. WorldCom’s corporate and ethical culture requires
modification to reduce unethical accounting during financial reporting. The company is expected to come up with
a code of ethics that will regulate actions of employees and management.
References:
Bebbington, J., Unerman, J., & O'Dwyer, B. (Eds.). (2014). Sustainability accounting and accountability. Routledge.
Carroll, C. E. (Ed.). (2015). The handbook of communication and corporate reputation (Vol. 49). John Wiley & Sons.
DeBacker, J., Heim, B. T., & Tran, A. (2015). Importing corruption culture from overseas: Evidence from corporate
tax evasion in the United States. Journal of Financial Economics, 117(1), 122-138.
Guiso, L., Sapienza, P., & Zingales, L. (2015). The value of corporate culture. Journal of Financial Economics, 117(1),
60-76.
Marker’s Comments: The marker will provide feedback here. Mark (5):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very
high level of detailed knowledge of
core concepts by providing a very
high level of analysis. Utilises
current, appropriate and credible
sources.
Demonstrates a balanced and high
level of knowledge of core
concepts by providing a high level
of analysis. Utilises mostly current,
appropriate and credible sources.
Demonstrates a good level of
knowledge of some of the core
concepts by providing some level
of analysis. Utilises some current,
appropriate and credible sources.
Demonstrates limited knowledge of
core concepts by providing a
limited level of analysis. Utilises
few current, appropriate and
credible sources.
Demonstrates little, if any,
knowledge of the core concepts
with extremely limited, if any,
analysis. Utilises little, if any,
current, appropriate and credible
sources.
Quality of writing at a very high
standard. Paragraphs are
coherently connected to each
other. Correct grammar, spelling,
and punctuation.
Quality of writing is of a high
standard. Paragraphs are mostly
well structured. Few grammar,
spelling and punctuation mistakes.
Quality of writing is of a good
standard. Few grammar, spelling
and punctuation mistakes.
Some problems with sentence
structure and presentation
Frequent grammar, punctuation
and spelling mistakes. Use of
inappropriate language.
Quality of writing is a very poor
standard so barely
understandable. Many spelling
mistakes. Little or no evidence of
proofreading.
The assessment presents a
detailed and focused summary of
the ideas presented; drawing clear
and well-thought-out conclusions.
The assessment presents a fairly
detailed and focused summary of
the ideas presented; drawing fairly
clear and well-thought-out
The assessment presents a
somewhat detailed and focused
summary of the ideas presented;
providing some evidence of
The assessment provides limited
detail with no clear summary of the
ideas presented; drawing limited
conclusions.
The assessment fails to provide
any clear evidence of the ideas
presented; drawing no clear
conclusions.

Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
conclusions. conclusions.

Part A Question 4: Describe how an institutionalized ethics program might have helped WorldCom at this very
moment (described in the case study). You should explain what a useful ethics program might contain.
WorldCom did not have institutionalized ethic programs which were controlling daily operation of the business.
The Chief Financial Officer and Financial Controller delegated unethical accounting practices to the accountants
which involved adjustment of values in the accounting system physically. Buddy, Troy, and Betty had to
manipulate accounting data so that they can come up with a modified financial report as requires by David, the
financial controller. Lack of ethics code of conducts made it possible for the top managers to manipulate other
staff to doing unethical practices in accounting (Shukeri, Wan-Hussin & Aripin 2015). The accounting entry system
requires regulation by the code of ethics which requires an individual to make changes to accounts entry while
indicating the reason for changing the entry in the system. It is vital for a business to follow the set financial
reporting laws for a proper report that could be used in decision making. The investors consider the financial
report of a company in deciding whether to invest in a particular group thus it is essential for the reports to be
accurate and reliable to the stakeholders. Accounts should have an ethical culture that will reduce illegal activities
in the organization from the practices (Ionescu 2016). WorldCom employees who were involved in manipulation
of accounting data were jailed due to lack of being ethical and not following set laws regarding financial reports.
Institutionalised ethics program requires the employees and management to come up with ethical decisions
which have a positive impact on the performance of the organization (Crane & Matten 2016). The wrong company
accounting led to the wrong statement of operational expenses leading to an overstated profit from the financial
reporting. There was false $3.8 billion of accounting errors which negatively impacted the investors of the
company. The accounting issue led to lay off of over 17,000 employees for the company when it was declared
bankrupt (Hancock, 2002). An institutionalized ethic program would have handled the issues in the company as
the accounting, and other processes of the company would have been ethical following the stated ethic code of
the company. Ethics code in an organization guides the employees and management before coming with a
decision that will affect the performance of an organization. The internal and external stakeholders of the

company consideration before implementing a decision for the achievement of set goals through ethical
production.
References:
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of
globalization. Oxford University Press.
Hancock, D. (2002). World-Class Scandal At WorldCom. Cbsnews.com. Retrieved 7 October 2017, from
https://www.cbsnews.com/news/world-class-scandal-at-worldcom/
Ionescu, L. (2016). The Role of the Professional Accountants in Business Administration. In International Conference on
Economic Sciences and Business Administration (Vol. 3, No. 1, pp. 184-188). Spiru Haret University.
Shukeri, S. N., Wan-Hussin, W. N., & Aripin, N. (2015). Signing Auditor Quality and Audit Delay: Preliminary
Evidence. Advanced Science Letters, 21(6), 2007-2010.
Marker’s Comments: The marker will provide feedback here. Mark (5):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very
high level of detailed knowledge of
core concepts by providing a very
high level of analysis. Utilises
current, appropriate and credible
sources.
Demonstrates a balanced and high
level of knowledge of core
concepts by providing a high level
of analysis. Utilises mostly current,
appropriate and credible sources.
Demonstrates a good level of
knowledge of some of the core
concepts by providing some level
of analysis. Utilises some current,
appropriate and credible sources.
Demonstrates limited knowledge of
core concepts by providing a
limited level of analysis. Utilises
few current, appropriate and
credible sources.
Demonstrates little, if any,
knowledge of the core concepts
with extremely limited, if any,
analysis. Utilises little, if any,
current, appropriate and credible
sources.
Quality of writing at a very high
standard. Paragraphs are
coherently connected to each
other. Correct grammar, spelling,
and punctuation.
Quality of writing is of a high
standard. Paragraphs are mostly
well structured. Few grammar,
spelling and punctuation mistakes.
Quality of writing is of a good
standard. Few grammar, spelling
and punctuation mistakes.
Some problems with sentence
structure and presentation
Frequent grammar, punctuation
and spelling mistakes. Use of
inappropriate language.
Quality of writing is a very poor
standard so barely
understandable. Many spelling
mistakes. Little or no evidence of
proofreading.
The assessment presents a The assessment presents a fairly The assessment presents a The assessment provides limited The assessment fails to provide

Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
detailed and focused summary of
the ideas presented; drawing clear
and well-thought-out conclusions.
detailed and focused summary of
the ideas presented; drawing fairly
clear and well-thought-out
conclusions.
somewhat detailed and focused
summary of the ideas presented;
providing some evidence of
conclusions.
detail with no clear summary of the
ideas presented; drawing limited
conclusions.
any clear evidence of the ideas
presented; drawing no clear
conclusions.

Part B: Taking the viewpoint of Buddy Yates in this case study, step through what his decision might have been
had he followed the AAA decision model. You should fully explain his options under every step of the seven-
step model.
Proper decision making is essential in business as it makes it possible for an organization to achieve set goals from
production. Buddy Yades was the director of accounts for WorldCom Company who was instructed to physically
modify account entries in the accounting system by David Myer the Financial Controller. As the account director,
Buddy had an option to refuse to the changing of the accounting entries it would lead to inaccurate financial
reporting to the public. Buddy asked the two mid-levels accountants, Betty Vinson and Troy Normand, to adjust as
requested by the top management of WorldCom. Buddy, Troy, and Betty were all uncomfortable to adjust to
account entries as it is unethical and illegal. Despite being uncomfortable with the decision, they agreed to follow
the decision by the top management of physically making changes to the WorldCom accounting system to meet
the earning expectation of the company. This decision of manipulation the financial report of WorldCom led to jail
time for all individual involved in the process of financial reporting to the public. Buddy would have considered
the use of AAA decision model to come up with the most suitable decision that is legal and ethical. AAA decision
model focuses on coming up with a valid choice that will provide growth for the company (Anderson et al. 2015).
The mission, values, and vision of the company are required to be considered in coming up with a decision will
provide expansion of the organization. Business ethics is an essential component in coming up with a decision that
is highly accepted in the business operations (Chen & Cheng 2013). The seven steps of AAA decision model state
the problem, check the facts, identify relevant factors, develop a list of options, test the options, make a choice
based on steps 1 to 5 and review steps 1 to 6. This process makes it possible for an organization to come up with
practical strategies that will increase profitability from production.
State the problem
This is where an individual identifies the conflict of interest of a decision requiring considering all the stakeholders
of the business. It is essential to come up an arrangement where all people involved are comfortable in

implementing the decision for a continuous development of operations in the organization. Proper analysis of the
internal and external business environment makes it possible to identify the areas in the organization which
requires change. The decision made is necessary to handle the specific problem facing the organization for a
stable performance in the targeted market. The cost and control measures are identified when acquiring
information about the problem facing the business (Jeston & Nelis 2014). This makes it possible to have an
opportunity to realize set goals from production through the identification of a problem in the organization. The
internal factors to assist in identifying the problem are the employees and management of the organization as
they are well exposed to business operations. The external factors to consider when coming up with a problem
statement are suppliers, creditors, consumers and the community. The management can decide to handle the
identified problem in business operation for the achievement of set production levels.
Check the facts
This step focuses perform analysis to the problem factors considering the laws and individuals involved in the
decision. The managers use skills and knowledge to identify whether the problem requires a decision. There are
some problems which are handled with the policies of the company thus does not need another choice to handle
the problem. The causes of the problem are identified to develop a measure that will control the performance of
the organization (Hartman, DesJardins & MacDonald 2014). The constraints in making the decision require an
evaluation of to have an insight on the problem facing the business. People and process are analyzed in
developing facts regarding a particular problem facing the organization to create a decision that is highly
acceptable to the stakeholders of the company. The issues in the organization require being clarified through a
closer examination of the situation. A closer inspection of problems facing the business provides a technique to
handle different situations facing the company (Wild, Wild & Han 2014). Identification of all facts in question
reduces the possibility of coming up with an erroneous decision. The decision which is based on facts improves
the performance of the business through quality production.
Identify relevant factors

The relevant factors in making a decision include people, laws, professional code and resources available in the
organization. Decision making requires skills and knowledge to identify the factors which are related to the
problem facing the organization. The person is where the management is necessary to consider the internal and
external stakeholder in coming with a decision which is highly accepted in the business environment. The internal
stakeholders are directly related to the performance of the business such as employees and management of the
organization. The employees and management identify the issue facing the industry requiring consideration when
coming up with a decision (Zsambok 2014). The external stakeholders are suppliers, consumers, creditors, and
community are relevant factors in making a decision. Business laws implemented in the nation require evaluation
before coming up with a decision to avoid legal issues during production. The professional code is used to govern
the operation of employees such as accounting requiring following the set code of conduct for that particular job.
The constraints are the difficulties in coming up with a valid decision that will handle the problem facing the
organization.
Develop a list of options
This is stage is vital in reducing dilemma in decision making by identifying the advantages and disadvantages of
the decision. The management can come up with different options. Ethical decision making requires the gathering
of essential information which will benefit the performance of the business (Hartman, DesJardins & MacDonald
2014). Training and development of employee reduce dilemma decision making for a stable performance of the
company. The developing list of option uses open questions to identify the opportunity that influences the
development the most appropriate decision. Alternatives in decision making provide the management with
required information for an effective plan to deal with the problem facing the business (Goetsch & Davis 2014).
Open questions of yes or no is used to eliminate the options that will deal with the problem facing the business.
The most suitable choice is to choose in ensuring that the decision is acceptable to the employees and the
management. An individual should identify the way to address the people affected by the decision to reduce
resistant to change in the company. The option implemented is required to handle constraints of decision making
for a continuous improvement of production in the business.

Test the options
The tests aim at developing at a popular decision that will handle issues facing the business through a stable
performance. These decisions are required to be flexible and feasible to ensure that there is the achievement of
set objectives from production. The following tests are performed on the option to ensure there is a sustainable
performance in the organization. Harm test which evaluates the dangers imposed on implementing the decision in
business operation. Publicity test is analysis the expected view of the stakeholders after the decision is published.
The views from the stakeholder are used to improve the decision to make it more feasible through production
(Tjader, May, Shang, Vargas & Gao 2014). The defensive test involves sharing with other employees or peers to
get their views about the option in handling the business problem. A committee is selected to evaluate the
possible effects of the decision to the improvement of performance. Reversibility test is used to understand if the
option is the right for the company by comparing several options. Colleague test requires suggestions from other
people to evaluate the option efficiently. The professional test involves consideration of ethics and legal
requirements in handling options. Organization test is the use of set company policies in coming up with a
practical decision for an increase in a competitive edge.
Makes a choice
An individual is required to make a choice considering steps 1-5 for a proper decision that is ethical and
acceptable in the market. Leadership skills and knowledge provides an individual with the requirements to handle
various business problems facing the business. The decisions are required to be flexible to ensure that it controls
the dynamic external business environment for a continuous competitive edge in the market. Strategic decisions
provide a smooth flow of operations for the achievement of long-term goals of business operations (Gamble &
Thompson 2014). Deciding considering the first five steps of AAA decision model reduces the cases on unethical
practices in an organization.
Review step 1 to 6

The level requires the management to perform caution measures to reduce the possibility of making such a
decision in another business problem. The precautions are aimed at reducing the cost of dealing with issues facing
the business. The policies of the companies are required to be modified to handle common issues facing the
community (Johri, Saraf & Ghosh 2014). The precaution provides a guideline to the employee for a smooth flow of
business processes. The appropriate decision-making process improves the confidence of the stakeholders which
is vital in attaining set long-term goals of production.
References:
Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., & Cochran, J. J. (2015). An introduction to
management science: quantitative approaches to decision making. Cengage Learning.
Chen, Y. S., & Cheng, C. H. (2013). Hybrid models based on rough set classifiers for setting credit rating decision
rules in the global banking industry. Knowledge-Based Systems, 39, 224-239.
Gamble, J. E., & Thompson, A. A. (2014). Essentials of strategic management. Irwin Mcgraw-Hill.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ:
Pearson.
Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2014). Business ethics: Decision making for personal integrity
and social responsibility. New York: McGraw-Hill.
Jeston, J., & Nelis, J. (2014). Business process management. Routledge.
Johri, D. C., Saraf, V., & Ghosh, A. (2014). Corporate Policy-its Determinants and Importance in Present Corporate
Scenario. International Journal on Emerging Technologies, 5(1), 14-16.
Tjader, Y., May, J. H., Shang, J., Vargas, L. G., & Gao, N. (2014). Firm-level outsourcing decision making: A balanced
scorecard-based analytic network process model. International Journal of Production Economics, 147, 614-
623.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.
Zsambok, C. E. (2014). Naturalistic decision making. Psychology Press.

Marker’s Comments: The marker will provide feedback here. Mark (20):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very
high level of detailed knowledge of
core concepts by providing a very
high level of analysis. Utilises
current, appropriate and credible
sources.
Demonstrates a balanced and high
level of knowledge of core
concepts by providing a high level
of analysis. Utilises mostly current,
appropriate and credible sources.
Demonstrates a good level of
knowledge of some of the core
concepts by providing some level
of analysis. Utilises some current,
appropriate and credible sources.
Demonstrates limited knowledge of
core concepts by providing a
limited level of analysis. Utilises
few current, appropriate and
credible sources.
Demonstrates little, if any,
knowledge of the core concepts
with extremely limited, if any,
analysis. Utilises little, if any,
current, appropriate and credible
sources.
Quality of writing at a very high
standard. Paragraphs are
coherently connected to each
other. Correct grammar, spelling,
and punctuation.
Quality of writing is of a high
standard. Paragraphs are mostly
well structured. Few grammar,
spelling and punctuation mistakes.
Quality of writing is of a good
standard. Few grammar, spelling
and punctuation mistakes.
Some problems with sentence
structure and presentation
Frequent grammar, punctuation
and spelling mistakes. Use of
inappropriate language.
Quality of writing is a very poor
standard so barely
understandable. Many spelling
mistakes. Little or no evidence of
proofreading.
The assessment presents a
detailed and focused summary of
the ideas presented; drawing clear
and well-thought-out conclusions.
The assessment presents a fairly
detailed and focused summary of
the ideas presented; drawing fairly
clear and well-thought-out
conclusions.
The assessment presents a
somewhat detailed and focused
summary of the ideas presented;
providing some evidence of
conclusions.
The assessment provides limited
detail with no clear summary of the
ideas presented; drawing limited
conclusions.
The assessment fails to provide
any clear evidence of the ideas
presented; drawing no clear
conclusions.