Question

Please read the Ethics case and submit your responses, totaling at least 250 words: Lauren Smith is the controller for Sports Central, a chain of sporting goods stores. She has been asked to recommend a site for a new store. Lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. Lauren also contacted several other shopping plazas and malls, but her uncle's store turned out to be the most economical place to lease. Therefore, Lauren recommended locating the new store in her uncle's shopping plaza. In making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. (1) Is Lauren acting ethically or not ethically? (2) Provide a supporting explanation to support your answer:

Answer 1

Answer :

1.

Yes, Lauren has acted ethically.

2.

Explanation in support of above answer.

Lauren Smith is the controller for sports central. She has been asked to recommend a site for new store.

Lauren has asked quotations for leasing space from his uncle and other shop owners for the new store.

She has compared the quotations and chosen the most economical option , which is his uncle's property.

She has not mentioned the fact in her recommendation to management, that the space she has selected is her uncle's property.

Her actions are ethical , even if she does not disclose the fact that the recommended place is owned by her uncle, because she has chosen the most economical option.

She have chosen the best option from the various available options in the market, thus she have acted ethically in her best professional capacity.

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