ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
Tomas, an accountant in a manufacturing company, discovers that his manager has been inflating expense claims. Tomas has raised it with the manager, who ignored him. According to the usual approach to resolving ethical conflicts, what should Tomas do next?
Tomas should follow the employer's internal escalation procedures, taking the matter to higher management or the audit committee. Once the direct manager ignores the concern, internal escalation is the normal next step before any external action, while going to the press or staying silent is inappropriate.
- AFollow the employer's internal escalation procedures, such as reporting to a higher level of management or the audit committeeCorrect
- BImmediately report the matter to the press to protect the public
- CDo nothing, since confidentiality prevents any further action
- DResign at once without telling anyone why
Explanation
After failing to resolve the matter with the immediate manager, the usual step is to use internal procedures and escalate to higher management, internal audit or the audit committee. Going public immediately or ignoring the issue is not appropriate, and resigning silently does not resolve the conflict.
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