ACT 560 Mod 4 A Small Matter of Trimming Case Study

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cgeprneyr

Business Finance

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Option #1: Case Study: A Small Matter of Trimming

Read the Case Study: A small matter of trimming.Links to an external site.

Cheating occurs in different forms. In the case study, Tracy and Denise need to provide a recommendation on a stocking fee for large and small Breweries.

  • What was Denise's and Tracy's ethical justification to go along with stocking fee?
  • What could "fixing the data" have done to foster and create an ethical environment?
  • What might be the cheating signal in the company that would make deontology or utilitarianism ethical theories effective?
  • What might be the duty to the client that Denise and Tracy have?

Explanation & Answer:
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1

A Small Matter of Trimming

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A Small Matter of Trimming
Introduction
Ethical behavior is critical to the success of every professional because it guides almost
every key decision-making. Balancing stakeholder interests can be challenging for professionals.
For instance, the case study "A small Matter of Trimming' by Russell and Kennedy (n.d) presents
an accounting ethical dilemma case. University buds' Denise and Tracy have to decide whether
to take on a sub-contract and help Beer Unlimited to manipulate data to justify a $700 stocking
fee or turn down the offer and risk never getting any other contract in the future. The contract
was initially awarded to Raditech, who subcontracted Dentrac. As a firm enjoying monopoly
powers in the Canadian beer industry, Beer Unlimited provided the consultants with rogue data
and wanted it manipulated to justify the hefty stocking fee. The move was motivated by the
desire to kick out small beer manufacturers from the market. This paper provides a critical
analysis of the case study.
Denise's and Tracy's Ethical Justification to go along with Stocking Fee
The desire to earn a $15,000 consulting fee and strategically position their firm Dentrac
Consultants for future contracts motivated Denise and Tracy to go along with the $700 stocking
fee (Russell & Kennedy, n.d). Law and order orientation is the fourth stage under Kohlberg's
theory of moral development. At this stage, an individual's behav...


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