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Ethics - Assignment Example

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Summary
Empress Luxury Lines’ case depicts an issue of fraud. Fraud is an unethical practice carried out by companies to embezzle funds from stakeholders. Phil Bailey commanded Kevin Pfeiffer to dig up nearly all the underground wire and cable before the insurance agency…
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Ethics Assignment
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Download file to see previous pages Phil covered up his ill intentions by saying that the tidy sum would enhance a complete system overhaul.
Fraud is a common unethical issue among firms that aim to make money through unscrupulous activities (Richardson p 18). Kevin’s intentions were not for the good of the company, but for his personal satisfaction. Fraud affects a company’s financial statements. It is much more expensive to cover-up fraud when the financial statements are undergoing audit procedures.
2. Fraudulent activities in Empress Luxury Lines have a material impact on various stakeholders. Kevin Pfeiffer, the computer technician is likely to get fired for two reasons; first, he declined Phil’s order to dig up nearly all the underground wires and cables. Phil is Kevin’s supervisor who has the authority to dismiss him on grounds of declining to perform duties (which is also a fraudulent activity by Phil). Secondly, Kevin was still a new hire under probation. He was well aware that failure to heed to Phil’s orders would have dire consequences on his career. His job was at stake as it is evident from what he told Antonio that his integrity did not matter. The orders he declined were performed by Matt, who would also benefit from the abhorrent actions.
The insurance company would also have suffered from fraud. The insurance company was defrauded sums thirty times more of what would have been the real amount. Antonio claimed that he had heard rumours that the company successfully defrauded insurance companies before he arrived. Phil’s fraudulent activities brought truth to those allegations. The fraudulent activities had adverse effects on the company’s shareholders and financiers; the main source of capital for the company. The financial statements they received did not reflect a truthful and fair financial operation of the business. In fact, the parties involved in the fraudulent activities ...Download file to see next pagesRead More
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