Question

Ethical Issues He leaned forward slight moved slowly down the hall, reading back over his report as he neared Joseys e. He w
sed on your opinion of ABC costing, do you think that Jordans fear that e company will drop the ABC system is justified? Def
Should Jordan discuss his fears with Li? With Josey? What should Jordan do in this situation?
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Answer #1
a.The merits of ABC costing over the traditional way of allocation of manufacturing Ohs to products , are really worth the initial efforts ,like time &cost factors --as it is certainly a far better & accurate method of allocation of Ohs.
Jordan & LI were all along been involved in working with the intricacies required to establish the ABC system & hence he is justified in getting disappointed , when he heard that Josey was not at all in favor of introducing the same.
Jordan's fear or rather apprehension , can be defended on a number of counts:
1.His & Li's work might go waste & futile .
2. Since Li was specifically employed for this purpose ,her services may be dispensed with & that fact was making him unsettling.It is quite natural that humans are averse to frequent change of colleagues ,in the work place , as all your investment ,in terms of time, friendship ,etc. go waste & you have to start all over again, with a new one.
3.Adoption of ABC system is for the betterment of the company & not as a matter of personal preferences.All Jordan fears about ,is the unsettlement, to his colleague or even to himself.
4. Introduction of ABC system requires a good number of personnel, atleast in the beginning stage. So any negative decision ,on this account, will naturally lead the management to do away with the additional employees.
So, Jordan's fears are not totally unfounded and can be justified.It is a mixed feeling for him.
b. Given the scenario,if the management chooses to downsize the accounting dept. ,it does not look , as if they will consider gender or ethnicity of the employees ,in letting go or retaining.
It is to be pointed out that Li had been employed without giving any attention to her gender.
Same way , it may be their need , that seems to play a role in retaining or letting go of employees.
Also , it should be based on skill & qualification to do the job , rather than gender/race & colour of recruits.
c. Jordan can certainly discuss the scenario with Li & keep her informed of Josey's opinion on introducing the ABC system , so that she may be prepared for anything, that may not be in her favor--so that she can start looking for some other opportunities--- without being totally in the dark .
Also, simultaneously, he should have a frank talk with Josey, first,impressing on the advantages of the ABC system,the work that had gone into it.
ie. It should be the company's interests ,first.
And then slowly broach the subject of Li's & his job prospects , in the event of ABC not being introduced--- to know her mind on the management's intention ,on how to otherwise employ them or will they be allowed to go.
Instead of ruminating within self , fearing the unknown, it is better to open the topic & thrash it out , for sure.
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