WestJet, an airline company based in Western Europe, is a small regional air carrier, struggling to achieve profitability in a limited niche market. WestJet's executive team is expected to make significant cost cuts and show positive changes in the airline's financial situation. Newly appointed Onboard Services Manager Tom Jones recently joined the company. Part of Tom's job is to check all the monthly invoices received for onboard services, verifying that they correspond to the services provided, approving the invoices, and forwarding them to the accounting department for payment. One of its vendors is Air Catering, a local airline catering company that was the only licensed catering service with all the required certifications for WestJet's base airport. Enjoying a monopoly position there, Air Catering charged high prices yet made sure to negotiate favorable terms in its agreements with airlines, especially WestJet. Going through the invoices, Tom noticed an unusual invoice from Air Catering for "general catering services." Tom was unsure what services these were for or why they were all invoiced on a separate bill. Tom decided to share his concerns with his direct supervisor.
His supervisor said that the invoice referred to a separate verbal agreement between WestJet's and Air Catering's accounting departments. "These are some complicated accounting matters you shouldn't worry about," his boss said. "They know better how to properly invoice everything." She advised Tom to just sign his approval of the invoice and forward it to the accounting department for payment.
Using the IMA Statement of Ethical Professional Practice, analyze the situation Tom is facing. Does Tom have an obligation to do more to address this ethical situation? What other actions could he take to successfully resolve this ethical conflict?

Question

Quizplus · Accepted Answer

Tom's supervisor is violating the IMA Statement of Ethical Professional Practice in terms of integrity and credibility. It is definitely an integrity problem that she is telling Tom to just approve the invoice without him knowing what it is for. She is essentially asking him not to carry out his duties ethically. This activity could discredit the company and the profession, plus it encourages a nonethical culture at the company. There is also a credibility issue in that not all relevant information is being provided and the information being provided would be deficient and violates internal controls the company has in place.
Tom has an obligation to take action to resolve this conflict, but he is facing a very difficult situation. It is quite possible that his supervisor is not telling him all she knows. If he goes against her direction, he may lose his job. On the other hand, not taking action could make him appear to be condoning the unethical conduct, which would also compromise his future with the company.
$\bullet$ In this case, Tom should first follow the company's established policies for dealing with ethical conduct. If no action is taken, Tom needs to go above his supervisor's head to report the issue.
$\bullet$ If no action is taken, Tom could contact IMA's anonymous helpline for guidance.
$\bullet$ If the guidance does not help him resolve the matter, he should consider consulting his own attorney to learn of any legal obligations, rights, and risks concerning the issue.
$\bullet$ If his resolution efforts are still not successful, he may wish to consider leaving the company. However, if he does so, it is imperative that he send an email to the human resources department and at least one other company official to document what happened.
Tom can only protect his own integrity-he cannot enforce it on others if they are resistant. Remember, you can only give your integrity away; it cannot be taken by force.

WestJet, an Airline Company Based in Western Europe, Is a Small