Reference no: EM132571944

Million Dollar Mills is a manufacturing firm. The company carefully prepares all financial statements in accordance with Accounting Standards for Private Enterprises (ASPE) and gives a copy of all financial statements to each department. In addition, the company keeps records for quality control, safety, and its environmental pollution. It then prepares "scorecards" for each department indicating their performance. Recently, the financial impact of the second set of information was added, and the information has been used in the evaluation of employees for merit pay and promotions.

At the most recent employee meeting, Thanh Nguyen, marketing manager, expressed his discomfort with the system. He said there was no guarantee that the second set of information was fair since there were no generally accepted principles for this kind of information. He also said that it was kind of like keeping two sets of books-one following all legal requirements, and the other one actually used by the company.

Instructions

Question a. Is it ethical to evaluate managers in the way described? Explain briefly.

Question b. Name at least two safeguards the company could build into its system to ensure the ethical treatment of employees.