LEGAL ISSUES FOR MANAGERS
ETHICS
Sally Allaway is a purchasing officer for AGL and travels throughout South East Asia looking for and purchasing quality materials for AGL’s range of running shirts and shorts. In November last year Sally visited a number of fabric suppliers in Vietnam. While AGL did not source any fabric from Vietnam, they were looking to for new potential suppliers. While there, the Director of one company, PPL, told Sally that if AGL was to source over $1 million dollars (Australian) of material from his company, he would give her $5 000 (Australian) as a secret commission.
Jean Moore, a junior accountant in the sales department of AGL, has discovered that some of the information in the Annual Financial Report is incorrect. When she told the Mr Smith, the Chief Financial Officer, she was told that she has very little experience with complex accounting standards and company law and thus really does not fully understand how a Financial Report is compiled. Instead she should concentrate of her job and leave the Financial Report to the experienced accountants. Jean is worried about losing her job should she push the matter but believes she is correct.
Jack Stewart works for AGL as a salesman. His sister is the Chief Executive Officer of a new sports equipment manufacturing company based in Perth, Western Australia. To help his sister out, Jack has been sending his her confidential lists of customers of AGL and information regarding how much equipment each customer purchases and at what price. This information has really helped Jack’s sister to be able to compete with AGL across a number of areas in the sports equipment business. Jack is paid $50,000 per year from his sister for his services.
When answer the following question, do not refer clauses 1 or 7.
Question 1 (1 mark)
How does the AGL Code define a ‘conflict of interest’? Give one example of how the AGL Code suggests a conflict of interest may arise.
Question 2 (3 marks)
State the behaviour of all parties with respect to the Jean Moore scenario, which is (or could potentially be) a breach of the AGL Code and explain why you believe the behaviour is (or could be) a breach of the Code. Please note the specific Clause number(s) of the Code you believe to be relevant.
Question 3 (3 marks)
State the behaviour of all parties with respect to the Jack Stewart scenario which is (or could potentially be) a breach of the AGL Code explain why you believe the behaviour is (or could be) a breach of the Code. Please note the specific Clause number(s) of the Code you believe to be relevant.
Question 4 (1 marks)
State the behaviour of all parties with respect to the Sally Allaway’s scenario which is (or could potentially be) a breach of the AGL Code and explain why you believe the behaviour is (or could be) a breach of the Code. Please note the specific Clause number(s) of the Code you believe to be relevant.
Question 5 (2 marks)
Your textbook notes two different views regarding the ethical duties of businesses; Milton Friedman expresses one view. The other, contrasting view, is the ‘corporate social responsibility’/‘triple bottom line’ theory. Which of these two ethical duties do you believe motivated the creation of the AGL Code and why do you believe so?
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT 🙂