Ethics and Professional Conduct in Business
Read Case 6-3. Is Gene Lumpkin behaving in a professional and ethical manner? Give reasons for your answer.
Post 1 of student
The way I viewed this case study was basically that Gene Lumpkin was trying to end the year with a bang. There was nothing unethical about his decision to try to rush out deliveries before the year ended. Sales would increase both account receivables and sale revenue. In an attempt to help the company’s decrease in sales for the year, he made the executive decision to get deliveries to customers to raise the sales for the year while he had time. If anything, I see this as capitalizing on an opportunity to help the company. If there is time to attempt to improve numbers, it should be taken advantage of. The issue would arise if the. orders were rushed out and done incorrectly. It would refect that numbers were more important than quality. This would be considered unethical behavior. Customers would receive their order faster, but it would be irrelevant if it was not what they were expecting to receive. Mr. Lumpkin behaved in a professional manner in terms of trying to rectify the company’s weakness for the year. In regards to his employees working over time on the last day of the year, he could give them compensation for the hours. All in all, he made the choice anyone in his position should be brave enough to make.
Post 2 of student
Gene Lumpkin is the controller for Mitchell Co. a company that is experiencing a decrease in sales and operating income for the fiscal year. As the controller Lumpkin is suggesting that they ship all orders received before the end of the fiscal year to hide their decrease in sales. This is wrong for many reasons:
Overall, the actions of Gene Lumpkin are not professional and not ethical. All of the financial statements from this point forward are incorrect thus overestimating the value of the company. His actions could lead to large amounts of fraud.