Katie Is Part of an Audit Team Who Have Been

question 4

Essay

Katie is part of an audit team who have been sent to Eastern Europe to conduct an audit of one of their client's subsidiary companies. During the audit Katie uncovers a series of bribes that the company has paid to local authorities. Bribes are considered a normal part of business in this particular city so the subsidiary company feels as though they have done nothing wrong. It is likely that the bribes will not be uncovered but there is a chance that they will be, and that the parent company, the audit firm, and Katie personally will all suffer negative consequences if they are. If Katie does report the bribes then the subsidiary company will suffer and there will be a scandal for the parent company. However, the impact of reporting the bribes is likely to be less than if they are discovered at a later date by other authorities. Katie thinks of herself as an honest person and is trying to decide what the ethically 'right' thing to do is.
Try to determine what decision Katie will make regarding whether or not she will report the bribes by applying the ethical theories of teleology, deontology, virtue ethics, and ethical relativism.

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Definitions:

Workers' Compensation Statute

Legislation that provides financial and medical benefits to employees who are injured or become ill as a direct result of their job.

Featherbedding

The practice by labor unions of demanding excessive levels of staffing, beyond what is required for a task, to create or protect jobs.

Unfair Labor Practice

Actions by employers or unions that violate the rights of employees or employers under labor laws.

Workers' Compensation Award

A financial benefit granted to employees who suffer injuries or illnesses directly related to their job duties.