IE 015 Industrial Engineering Values & Ethics
SY 2022-2023; 2nd Semester
Case Study (Groupwork)
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Date:
INSTRUCTIONS: Read the short case below and prepare a short case analysis as indicated below:
Case Situation: Fraudulent Books
(Case prepared by Gov. Jose B. Fernandez Ethics Center, Ateneo de Manila Univ., Philippines)
Laura has finally returned to her job as an accountant at Megatron Enterprises, a small family-run
hardware supplies chain, after a five-year extended maternity break. She has returned at an
important time in the fiscal year: tax season. As she reviews the books for the period she was
gone, she notices little anomalies which suggest that Megatron has been reporting much less income
than they have actually made in the last two years.
Troubled by this, Laura approaches the company owner, Joseph, who comes clean and explains that he
has been altering the books because of a personal financial slump that he fell into because of a
gambling problem. Joseph promises that from now on, now that Laura is back, he
will no longer attempt to reduce his tax liability because he and the company are in a better place
now. However, he also makes clear to Laura that he cannot afford to pay the back taxes and their
penalties.
If Laura reports the fraud to the tax authorities, the company may close. If it comes out that she did
not report it. She will lose her license. What should Laura do?
Discussion Questions:
1.
Discuss with your group (to check your group and groupmates, click "people" in the navigation
pane of your Canvas course and click on the "case study" tab, then search for your name and
group) the above case application.
2. Apply the "Ethical Case Analysis Process" and recommend a solution using the following steps:
a. Identify the relevant facts
b. Identify the relevant ethical considerations (concepts of morality, ethical principles and
ethical theories)
c. Define the moral issue/s
d. Identify possible ethical solution (including a creative middle way approach, is possible)
e. Recommend a solution by asking the ethics check questions.
Notes:
a. Refer to Module 2 Lecture Materials (02_Ethical Decision-Making) on the process.
b. You can use tools such as Line Drawing Approach in your analysis.
c. To support your decision, you can use additional information from the Code of Ethics for
Professional Accountants in the Philippines on the following link:
https://www.prc.gov.ph/uploaded/documents/Board%20of%20Accountancy-CE.pdf