Case 1: Clean Air Anti-Pollution Company

1) The stakeholder of the company are the president of the Clean Air Anti-Pollution Company, shareholders and the tax department. Shareholders and management of the company are stakeholders as they are getting direct benefit from the decision. while the tax department is also getting benefit  (as amount paid in the taxes is more than the actual liable payment) from the decision of the company to consider the useful life of the asset 12 year for the purpose of reducing expense.  

2) Making changes in the proposed asset life is a quite unethical and wrong way of earning high income. The action is illegal and against the law of accounting.    

3) As a result of increasing the useful life of the asset they will reduce the expense of the company and reduce in the expense will increase the income before taxes (EBIT). Thus company will pay the extra taxes.  

Case 2: Tomlinson Corporation

1) The shareholders, management, and the society are the main stakeholders of the company that are getting direct influence form the decision taken by the president of the company.

2) No, there is nothing ethical but the wrong interpretation of the decision. As he is only claiming that stock dividend will benefit the shareholders/ stockholders while there are also chances that stock dividend cause to effect the equity of the company.  

3) Companies issues stock dividend in alternative of cash dividend but sometimes issuing stock dividend decrease the market value and per share prices in the market because of increase in the number of shares. However, stock dividend is a good decision if investors/ shareholders want to reinvest their earning in the business by increasing their shares to earn more in profit (but only when the profitability of the company is increasing) as a shareholder I will ever prefer to have cash dividend as cash dividend has less risk factor.