Ethics Case 1

Al Bender is the controller of the Diabco Company. Sara Labont is the assistant controller. Al is a close friend of the company president, and Sara is a relatively new employee. Sara is a recent college graduate with high honors from a prestigious university.

Prior to Sara's employment, the company's accounting system did not produce the timely, useful information that management required. After Sara was hired, Al assigned her the task of designing a new accounting system. He also told Sara to devote all of her effort to this assignment. After several months of Sara's hard work and long hours, the new system was completed, installed and highly successful.
The company's executive managers have been greatly impressed with the new system's results and significant improvement in accuracy and turnaround around time- Recently, Diabco s president asked Al who designed the system. Al, seeking an opportunity to promote his image, told the president that the system was his original idea and design. Further he told the president that, while the development of the system required a tremendous amount of his personal time, the company's need have priority.

Later, Al tells Sara about his conversation with the president. Al suggests to Sara that her silence would be her best course of action in this matter.

1. What are the relevant facts in this case?

2 What are the ethical issues?

3. What are Sara's possible alternatives for her next course of action?

Ethics Case 2

Jessica Taylor is the director or computer services for the Wallace Corporation. The Wallace Corporation needs to purchase a new computer, so Jessica has been researching the prices and capabilities of various computer models.

After Jessica finishes comparing the different models and prices, her research shows that her final choice is between two different computers; one is offered for sale by the Sterling Computer Company and the other by the Ultra Computer Company The capabilities Lit these computers are identical.

The Sterling Company's computer is more expensive than the Ultra Company's computer. However, the Ultra computer is not as mechanically reliable as the Sterling model.

After considering both models, Jessica orders the Sterling computer. The management of the Wallace Corporation is not aware that the salesperson for the Sterling Computer Company is Jessica's Zbrother-in-law.

1. Is Jessica's decision or behavior unethical?

2. What should Jessica do under these circumatances?