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Wednesday, February 12, 2020

Ethical Implications of Takeovers Case Study Example | Topics and Well Written Essays - 1000 words

Ethical Implications of Takeovers - Case Study Example The integrity question is the major ethical issue involved in this case, where Lisa is torn between challenging Mr. Jeffrey Anderson for overlooking the accounting discrepancies that have been noted on the financial statements of the Fragrance Company. The issue becomes an ethical dilemma for Lisa, because on the one hand, she needs to be true to her profession and also loyal to her organization, while she also needs to keep the acquired team close to her, since it is among the organizational workforce that Lisa will be working with. Whichever decision that Lisa chooses to take, she will cause detrimental suffering to other parties. This is because; if she chooses to overlook the accounting discrepancies in the Fragrance Company financial statements, the Home and Personal Care Products will suffer the detrimental effects of inaccurate basis of acquisition of the Fragrance Company. On the other hand, if she chooses to challenge Mr. Jeffrey Anderson over the discrepancies, she is likel y to distance herself from the newly acquired team that she will be working with, as part of the larger company.   Stakeholders involved in the ethical issue The stakeholders involved in this ethical issue are many. First, there is the shareholders of the Home and Personal Care Products, who will be directly affected by the acquisition of the Fragrance Company. This is because, the Home and Personal Care Products shareholders will be losing financially if the acquisition is completed based on the fraudulent and misrepresented financial statements.

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