What are the ethical issues in this case if any

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Reference no: EM13142411

Roniger Products Company operates three divisions, each with its own manufacturing plant and marketing/sales force. The corporate headquarters and central accounting office are in Roniger, and the plants are all within 50 miles of it. Corporate management treats each division as an independent profit center and encourages competition among them. They each have similar but different product lines. As a competitive incentive, bonuses are awarded each year to the employees of the fastest growing and most profitable division.

Jose Molina is the manager of Roniger's centralized computer accounting operation that enters the sales transactions and maintains the accounts receivable for all three divisions. Jose came up with the system that all sales document are entered into the computer, the originating division is identified by code. About 95% of all documents are coded, but 5% are not coded or are coded incorrectly.

Jose has instructed the data-entry personnel to assign the Bayport code to all uncoded and incorrectly coded sales documents. This is done he says in order to expedite processing and to keep the computer files current since they are updated daily. All receivables and cash collections for all three divisions are handled by Roniger as one subsidiary accounts receivable ledger.

What are the ethical issues in this case, if any? Would you have any concerns if you worked for the accounting department? Can the system be improved? If so, how?

Reference no: EM13142411

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