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Westfield

Company
A written report of Ethics Case BYP5-7

Agnes, Christine Ann D.


Manite, Roy Vincent B.
Santiago, Aila Ronnet M.
BSA IV-2

Mr. Leonardo F. Abiog.


Professor, Managerial Accounting Part 1
TF (12:30-2:00)
Ethics Case (BYP5-7)
Scott Bestor is an accountant for Westfield Company. Early
this year, Scott made a highly favourable projection of sales and
profits over the next 3 years for Westfields hot-selling computer
PLEX. As a result of the projections Scott presented to senior
management, the company decided to expand production in this
area. This decision led to dislocations of some plant personnel who
were reassigned to one of the companys newer plants in another
state. However, no one was fired, and in fact the company
expanded its work force slightly.
Unfortunately, Scott rechecked his computations on the
projections a few months later and found that he had made an
error that would have reduced his projections substantially. Luckily,
sales of PLEX have exceeded projections so far, and management
is satisfied with its decision. Scott, however, is not sure what to do.
Should he confess his honest mistake and jeopardize his possible
promotion? He suspects that no one will catch the error because
sales of PLEX have exceeded his projections, and it appears that
profits will materialize close to his projections.

Instructions

Who are the stakeholders in this situation?

Identify the ethical issues involved in this situation.

What are the possible alternative actions for Scott? What


would you do in Scotts position?
Answers

Scott Bestor, accountant of Westfield Company


The dislocated personnel of Westfield
The senior management who made the decision

Scott is hiding an error and knowingly deceiving the


companys management with inaccurate data

Keep quiet
Confess his mistake to the management

RISK ASSOCIATED TO THE MISTAKE:

For Scott Bestor


Risk his possible promotion or his entire job
Risk his new jobs his mistake has created

For Senior Management of Westfield Company


Risk financial impact from investors and
stockholders
In this case there are two ways for it to be solved, to confess
or not. Confessing the error to the senior management promotes
honesty and it shows professionalism. And by that chances are
given to those deserving, Scott Bestor should make the proper
adjustments to his calculations for to it to continue the progress of
his sales and profit projection, hence, with the rectified data
redemption is feasible. Also, confession is the right to do because
the problem will only bring forth risks that will endanger the
companys future.
And keeping quiet about the error will put Scott Bestor in a
state of unease depriving him of the focus he needed to seemly do
his job which in turn will bear adverse repercussion in the long run.
Similarly, it will lead to the formulation of lies to conceal the effect
of the error which should have been prevented.
This a matter of principles which lead to whether Scott Bestor
will choose his possible promotion over the well-being of the
Westfield Company.

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