Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
Objectivity The management accountant’s standards of ethical conduct require that information should be fairly and objectively communicated and that all relevant information should be disclosed. From a management accountant’s
standpoint, modifying employee and customer satisfaction ratings to make division performance look good would violate the standard of objectivity. Conley should indicate to Emburey that the employee and customer satisfaction ratings are, indeed, appropriate. If Emburey still insists on reporting better employee and
customer satisfaction numbers, Conley should raise the matter with one of Emburey’s superiors. If, after taking all these steps, there is continued pressure to overstate employee and
customer satisfaction ratings, Conley should consider resigning from the company and not engage in unethical behaviour.
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