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The Controller of One Division of a Large Diversified Firm

question 52

Essay

The controller of one division of a large diversified firm is compensated by salary plus bonus. The bonus is a significant part of total compensation, and is based directly on the profits of the division. Thus, the controller has an incentive to find ways to increase profits, including the delay of discretionary expenses such as research and development, delay of maintenance and repair of manufacturing equipment, and delay of sales promotions.
Required:
Is finding ways to increase profits as described above unethical? Why or why not? Who is to blame, if anyone?

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Definitions:

Neurotransmitter

A chemical substance in the body that transmits nerve impulses across a synapse between two nerve cells or between a nerve cell and a muscle cell.

Ecstasy

Commonly refers to MDMA, a psychoactive drug known for inducing feelings of euphoria, increased energy, and emotional warmth.

Serotonin

A neurotransmitter involved in regulating various functions including mood, appetite, and sleep, often associated with feelings of well-being and happiness.

Hypnagogic Reverie

A state of consciousness occurring between waking and sleeping, often filled with vivid sensory phenomena or imaginative thoughts.

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