Discuss Ethical Study In Accounting

2.In your role as an internal auditor for a car manu- facturer, you discovered that your employer can pro- duce a car engine that will get 8 more miles per gallon than the existing engine. However, the cost of pro- ducing this car engine would be an additional $3,000 per car. Assume that a typical driver drives a car for 5 years and 200,000 miles. Also, assume that the cost of a gallon of gas is $5 per gallon and a typical car gets 24 miles per gallon. The company is wonder- ing if it is ethical to not produce this more efficient engine.

1. Is this an ethical question or just a simple cost accounting problem?
2. Howwouldyouanalyzethisfromtheperspective of shareholder theory?
3. Howwouldyouanalyzethisfromtheperspective of stakeholder theory?
4. If this car manufacturer does decide to produce the more fuel-efficient car, would you consider it to be an act of corporate social responsibility?
5. Wouldyouranswertotheprecedingquestionbe different if the car manufacturer’s motivation was simply to increase its profits by selling more cars?

    

    

   1. 3.A criminal has taken five of your neighbors as hostages and has threatened to kill them unless five of his compatriots serving time for murder are

   released from prison. He has already shot one of the hostages in the leg. If the five compatriots are let free, authorities estimate that they will return to their home country of Mongolia, spend time with their families, and then begin murdering others next year. Statistically speaking, they are likely to kill a total of between 10 and 30 people in Mongolia.

   1. Should the authorities release these prisoners?
   2. Applying the Issue-Contingent Model, what ele- ments of moral intensity are especially important

      to you in formulating your opinion?

   3. What factors should a utilitarian take into account in evaluating this trade? What conclu-

      sion would a utilitarian likely reach?