Joe,the owner of ABC Electronics,just discovered that his trusted friend Paul,his accountant for over 30 years,has been mishandling the company books and stealing from the company bank account.Joe must decide whether to ignore his friend's actions and avoid bad publicity for ABC Electronics,or to have Paul arrested for embezzlement.Joe is facing
A)a whistle-blower.
B)a synergy factor.
C)an issue of corporate governance.
D)a social audit.
E)an ethical dilemma.

Question

Quizplus · Accepted Answer

Joe is facing an ethical dilemma because he must decide whether to report his friend's wrongdoing and potentially ruin their friendship or to ignore the misconduct and risk the financial stability and reputation of the company. The ethical choice would be to report the issue and have Paul held accountable for his actions, as it is not only the right thing to do, but also the legal and moral obligation of a responsible business owner. Ignoring the situation may result in more severe consequences in the future and could also set a negative example for other employees within the company.

Joe,the Owner of ABC Electronics,just Discovered That His Trusted Friend