Abby McPherson

Professor Seibel

Accounting II

6 April 2020

Ethics Case Study

The three cases I decided to learn and talk about are Accounting mini cases, Finance

mini cases, and Management mini cases. I believe that all three are equally important. It’s very

crucial to know about these mini cases because you will be around them if you choose to do

something in the business field. Some of it can be a little scary or overwhelming, but they are

only there to help you. Each mini case has case studies that are very important to know. I’m

going to pick the top three I think are most relevant, and that everyone should know.

The first topic under Accounting mini cases I chose was “Psych me out.” This topic has to

do with leadership. Stacy works at local CPA firm, and has partners that want Stacy to succeed.

He is very smart, but at his new firm nothing seems to be going right. He tries to perform at an

advanced level and cannot meet time budget. He also must redo his work on tax returns. His

supervisor and managing partner put him on a six-month probation without salary increase. He

knows he can succeed but is just improperly managed. Recently, the firm had suffered

resignations of staff accountants, and he started to notice how bad the firm was managed.
 Shortly after, the accounting staff learns that a psychologist is coming to the firm to

evaluate problems, employee confidence, and firm productivity. Stacy and the workers tell the

psychologist about the bad environment in the firm and how poor they treat the employees.

Later, they notice the firm will be up for sale. The interviews for new staff continue. Stacy

doesn’t know what to say about the working conditions in the firm, because he really hadn't

experienced them yet.

I think Stacy can overcome these problems by just having a good attitude, and really

trying to change the firm into a better environment, starting with the new staff members. This

is not only giving the whole firm another chance, but it is also giving Stacy a chance at being a

leader and a motivator. Sometimes we must experience lows, and overcome them to get to the

top, and succeed. I think this is very important in this case study.

The next topic under Finance mini cases was “The Accidental Bank Robbery.” The topic

of this was Commercial Bank Management Branch Management. It starts out with a man

named Chris. He was relief branch manager at Commerce Trust bank for the last two years as a

trainee and wanted to become branch manager.

When the regular office managers were gone, he would take over all management

functions until they came back. At the end of his first full day, one of the branches young tellers,

Carole reported to him that her drive-in teller window was $900 short. Chris knew an unsolved

shortage like this would lead to her termination. Carole was in a state of panic when asking

Chris for help.

computer. Chris soon spotted the error. Carole had received a check for $100 from one of the

bank’s regular depositors and entered it as $1,000. So, she paid $900 more than the amount

shown on the check. Chris was relieved to have found the problem and called the customer to

explain the error. He was surprised when the customer explained that she only got the $100

she was supposed to. Carole was so upset and knew she would be fired if the issue was not

resolved. It occurred to Chris that he could place the $900 loss in a temporary suspense account

and worry about the issue on a later date. Chris didn’t know what to do, or what was right.

Chris was obviously smart and loved the bank he was currently at. The ethical issue of

the story was clear. How can Chris be sure that Carole is telling the truth? An alternative would

be to call the other managers or ask Carole more questions about the situation so you can get

the bottom of it. It was a serious situation with how much money was missing. A situation like

that should never be taken lightly.

Lastly, the last topic under Management mini cases was “Family Business.” This topic is

about compensation and discrimination. Jane was hired for the head of the Payroll Department

at R&S Electronics Service Company. Eddie, the general manager of the company hired her.

There were 75 employees at the firm. Eddie had informed her of the need for maintaining strict

confidentiality concerning employee salaries and pay scales. She was also informed by Eddie

that he fired the former Payroll Department for breaking the confidentiality of discussing other

employee’s salaries.
 Jane was also introduced to the owner, Brad, who she is supposed to go see if she has

any questions or problems. Both Eddie and Brad did a great job at making her feel welcome and

comfortable. After a few months of working there, she begins to wonder why one of her

employees, Greg, is making more in commissions than the other employees. She assumes that

he must work faster or is more highly qualified. She has overheard Brad commenting Greg on

his performance and has seen Brad, Eddie, and Greg having lunch together regularly.

Sometime after that, Eddie gave Jane a stack of work tickets for the service technicians

in the upcoming week. They are supposed to take whatever ticket is on top when they are

finished with what they are working on. When putting the tickets where they belong, Jane

remember she has a doctor’s appointment the next morning. She goes to Eddie’s office to tell

him she will be coming in late. When she walks in, she notices that Eddie is giving Greg a

different stack of work tickets. Eddie tells her she cannot speak of it to anyone, or else he will

fire her.

Jane is very disturbed, and is upset that Eddie is giving Greg easier, high commission

work to his brother. She also realizes that Eddie cannot fire her for that reason. It is unfair.

Since she has only been at the company for a few months, she is still on probation. This is her

first time since college. She doesn’t know what to do and is very bothered by it.

There is one main ethical issue about this. Is there an obligation to make sure that

employee’s in a business are being treated fairly? If so, who does that obligation fall upon? I

think that is very important that everyone is treated fairly. No matter who you are. There are

some possible alternatives that Jane could do. I think the best alternative would be if she
informed Brad about the problem. Hopefully Brad would listen to hear and find a solution. It’s

not only her that is being treated unfair, but the rest of the employees are also.

In conclusion, I really enjoyed reading all the different scenarios and learning how to get

through them. This is important not just for businesses, but also for everyday life. I learned a lot

from them and can say I will look out for them in the future. You must consider all alternatives

and ethics, even if you don’t want to. Each case is so different in its own way, it’s about finding

the best solution for you, and the other’s that are treated unfairly.