The business case - Ethics:

Earl Smith is a financial controller with Practical Solutions Pty Ltd, an entity that sells software products to accounting firms and small businesses. At present, Mr Smith is analysing a number of software packages that focus on job costing. He needs to pick one package that he can recommend to his clients. Each software vendor is keen to have their software selected as it will result in a significant increase in sales for their company.

Anita Loo is a salesperson for the software company Dogto Ltd. She has told Mr Smith that he should go to Los Angeles to analyse her company's software package properly, because the programming experts there could give him a thorough demonstration. Ms Loo has also suggested that he take his family, so that he feels relaxed in a foreign country and is in the right frame of mind to undertake his analysis. She also suggests that Disneyland is worth visiting while Mr Smith is over there. Dogto Ltd would pick up the expenses for the trip.

Questions.

a. Outline any ethical issues involved in Mr Smith taking the trip. Relate any ethical issues directly to the facts of the business case.

b. Outline any benefits to Practical Solutions Pty Ltd of Mr Smith taking the trip.

c. How might Practical Solutions Pty Ltd be able to visit Dogto Ltd in Los Angeles without the appearance of favouring Dogto Ltd?

d. What would be the advantages and disadvantages to Practical Solutions Pty Ltd of having a code of conduct?

e. List the principles you would include in a ‘Code of Conduct' for Practical Solutions (PS) Pty Ltd and give a brief description of each. To assist you in determining this, you may like to examine the ‘Code of Conduct' of: the company assigned to the group you were in during Weeks 1 to 4 of session; a government agency; and a university such as ours (UWS) or the University of Newcastle. Remember, PS Pty Ltd is a small to medium enterprise (SME).