Assign each of these cost items to the appropriate part of t

Assign each of these cost items to the appropriate part of the value chain shown in Exhibit 1.4 30. Responsibility for ethical action (adapted from CMA exam). Emily Johnson recently ined Growth Chemicals, Inc., as assistant controller. Growth Chemicals processes chemicals for use in fertilizers. During her first month on the job, Emily spent most of her time getting better acquainted with those responsible for plant operations. Emily asked the plant supervisor what the procedure was for the disposal of chemicals. The response was that he (the plant supervisor) was not involved in the disposal of waste and that Emily would be wise to ignore the issue. Of course, this only drove Emily to in vestigate the matter further. Emily soon discovered that Growth Chemicals was dump- ing toxic waste in a nearby public landfill late at night. Further, she discovered that several members of management were involved in arranging for this dumping. Emily was, however, unable to determine whether her superior, the controller, was involved Emily considered three possible courses of action. She could discuss the matter with her controller, anonymously release the information to the local newspaper, or discuss the situation with an outside member of the board of directors whom she knows personally, a. Does Emily have an ethical responsibility to take a course of action? b. Of the three possible courses of action, which are appropriate and which are inap- propriate?

Solution

30. A. Yes Emily has the ethical responsibility to take the control of situation, as per code of ethics everybody involved in the company\'s operation is responsible for its action and should pin point the correct course of action.

. B. When Emily gets to know about the dumping of toxic wastes in land filling, her ethical responsibility calls her to discuss the issue with the superior controller first and the corporate social responsibility compliance department to get further details about it and to point out the issues with such dumping. If her concerns are not addressed properly she should disassociate herself from the company.