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    Applying a Decision-Making Framework

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    ? Answer the three questions following the Management Choice Ethics Case on p. 288 (Ch. 4) of the text.
    ? Describe what Sue should do and the decision-making approach that supports such action when responding to question 3. The steps summarized in Figure 5.5 on p. 353 (Ch. 5) may help guide your answer to question 3. Justify your decision based on the impact it would have on the stakeholders involved in the situation using terminology and concepts from Ch. 5.

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    1. Who are the stakeholders involved in this decision?
    The stakeholders in the decision are the CEO Anne Distagne, the shareholders of the company, the employees of the company, the management, the banks that lend to Linkage Construction, prospective investors in Linkage Construction, and the government.
    2. What are the ethical issues involved?
    There are several ethical issues involved. First, it is the duty of Linkage Construction and its management to disclose the correct profits that have been earned by Linkage Construction. Second, any manipulation of accounts like expensing capital expenditure on R&D is illegal and has little moral worth. Third, showing a lower profit means showing lower profits for distribution to shareholders and this is unethical. Fourth, showing lower profits for the current year means lower liabilities for taxation. This is unethical. Fifth, showing lower profits also means lower commissions for management. Sixth, showing lower profits also means that the stock of Linkage Construction will be traded at lower prices, this is unfair to the ...

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