Larry is the controller of ABC Industries and has a difference of opinion on an accounting matter with the CFO. Larry is told that the very survival of the company depends on his going along with the proposed accounting treatment that has been approved by the CEO and increases earnings 20 percent above what Larry believes it should be. If Larry goes along with the CFO, he is reasoning at what stage in Kohlberg's model:
A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4

Question

Quizplus · Accepted Answer

Stage 3 of Kohlberg's model is characterized by behavior driven by social approval and the desire to maintain relationships. If Larry goes along with the CFO, he is prioritizing the company's survival and approval from the CEO and CFO over his own ethical judgment.

Larry Is the Controller of ABC Industries and Has a Difference