Identify whether it involves a violation of the ethical standards of the profession,?
Find answers to your legal question.
Identify whether it involves a violation of the ethical standards of the profession,?
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and indicate which principle or rule would be violated.
a) Tom Hart, CPA, does the bookkeeping, prepares the tax returns, and performs various management services for Sanders, Inc. One management service involved the assessment of the microcomputer needs and identifications of equipment to meet those needs. Hart recommended a product sold by Computer Co., which has agreed to pay hart a 10% commission if Sanders buys its product.
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BAZzZMAN
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On a practical and business level could be argued that Hart is merely exercising a right to a perk of his position and that no-one is hurt in this arrangement. However on an ethical level it could be argued that Hart is abusing his position in order to procure personal financial gain. If Hart was genuinely loyal to Sanders Inc then perhaps he should pass the commission over to Sanders as a saving. This of course would need to be a selfless act. A further complication would be if Hart is actually employed by Sanders and an employment contract is in place. In this case that contract should be read carefully in order to determine whether any infringements would be evident in this situation. If Hart likes the idea of personal financial gain and is not prevented from gaining a commission under any contract in place then it seems that there are two possible options if one disregards any ethical considerations. a) Exploit the position and receive the perk quietly. b) negotiate with Sanders a split on the saving by explaining the approach.
If ethics are a paramount concern then clearly Sanders deserves the loyalty card since they are employing Hart and he wouldn't be in this position if it were not for their employing him.
As for laws and statutes, I do not expect to find any that apply. this is clearly a business/ethics question.
I hope this helps
Baz |
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No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
