Reference no: EM133246847
Case
Rory Hilton is the senior accountant of Pluto Ltd, a manufacturer of chocolate bars and other confectionary items. This is Rory's first job since he finished university and he is nearly at the end of his probationary period. Once his probation is finished Rory will have greater job security at Pluto.
Business conditions for Pluto have been good, with strong demand for its products. Management of Pluto is now negotiating a loan with the bank to fund significant investment in upgrading its factory equipment. Upgrading the factory equipment is an expensive process and management are keen to minimise the impact of the upgrade on short-term production.
Rory and a team of engineers are responsible for recommending one of three potential bids from tenderers to conduct the overhaul. Factors taken into consideration include the impact on short-term production, and balancing the cost with the quality of the upgrade. Rory's team analysed the costings of the three tenders and ultimately decided to recommend a company called Roach Ltd to perform the overhaul.
When the Managing Director of Pluto, Alex, was informed of their choice, she was surprised as she believed that the tender process merely a formality and that another company, Archibald, had already essentially won the contract. Archibald is a business with which Alex has a material interest through her family business, Limbach Ltd.
Upon viewing Rory's costings, Alex questions many of Rory's assumptions and insists that several amounts be adjusted. Rory acknowledges that some of the assumptions are open to interpretation, but also suggests to Alex that she has a conflict of interest and that this was influencing her perspective. Alex responded by telling Rory that that there is no conflict as she has more shares in Pluto than she has in Archibald, and that her interest is for Pluto to get the loan, conduct the upgrade and increase the productivity of its factory. Alex then tells Rory that if he wants to secure his future with Pluto, he should change the recommendation to Archibald.
Required:
a) What are the ethical issues facing Rory?
b) Advise Rory of appropriate courses of action from the teleological ethical perspectives of 'ethical egoism' and 'utilitarianism'. Justify why these are based on 'ethical egoism' and 'utilitarianism'.
c) Recommend a course of action for Rory based on deontological theory. Outline why this course of action is based on deontological ethics.
d) Which ethical theory do you think leads to the most appropriate course of action for Rory? Justify your position.