Morelli electric motor corporation

Running head: ETHICS 1

Ethics

Name

Institution

Ethics

Activity based costing

Activity based costing is a type of management accounting design that identifies activities in an organization and highlight cost of each activity to products and services in accordance to the confirmed consumption of each.

Ethics refers to the way persons conduct themselves in relation to thinking and behaviors which are governed by moral, legal and personal standards in interpretation of what is right or wrong. One of the obligations of the accounting profession is adherence to the set rules and requirements. Professionals in this field choose to abide by the rules to demonstrate fairness, accountability, integrity, independence and objectivity, competence and maintain trust from the public.

Is the controller, Erin Jackson acting ethically?

Erin Jackson is acting ethically in performing her duties. Integrity demonstration calls for being honest and straightforward in all profession relations. Morelli Electrical Motor Corporation’s controller, Erin Jackson shows what integrity demands from a profession. She is honest to her friend Alan Tyler on the loss the company has been experiencing from the deluxe model motor which he happens to be the production manager. From their conversation, Erin is confident with the report she has gotten and is ready to present it to the president of the company despite Alan’s plead.

Trustworthiness in accounting requires any executive to be candid and always put the business interest first. Personnel in the field supply information to the relevant chain of authority correcting the misinterpretation of facts. Erin Jackson has a record of facts about the losses accrued from the deluxe motor. She does not agree to be corrupted by Alan to edit the information from her findings to hide the reality.

Is the production manager, Alan Tyler acting ethically?

Alan Tyler is not acting ethically. He lacks accountability in his work. His line of control has continuously been making losses which earlier had not been detected. Knowing he would lose his job, he tries to convince Erin to “massage” the information to protect him. Corruption by management leads to the collapse of firms if not curbed in due time. Alan threats of intimidation to Erin is a sign of a corrupt manager he is upset with Erin and claims that the product costing was not done the right way. According to him, the firm has been making profits, and Erin’s data should not be relied upon.

Erin Jackson’s ethical obligations

Ethical obligations are set qualities that define acceptable causes of actions and differentiate between right and wrong. Erin Jackson is obligated to the president in the performance of her job. She is ethically compelled to give all her effort in the performance of her duties, and nothing compromises her loyalty to the company. She does not need supervision to present the right information. On the other hand, she maintains a professional relationship with her friend Alan. She makes it clear that she is supposed to report to the president and not her friend. She opts to be truthful about her actions.