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The Controller of One Division of IntroTel, a Large Diversified

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Essay

The controller of one division of IntroTel, 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.
Is finding ways to increase profits as described above unethical? Why or why not? Who is to blame, if anyone?


Definitions:

Organizational Objectives

Organizational objectives are specific, measurable, achievable, relevant, and time-bound goals that an organization aims to achieve to fulfill its mission.

Manage People

The practice of leading, motivating, and directing employees to achieve organizational goals.

Personal Values

The fundamental beliefs and principles that guide an individual's behavior and decision-making process.

Organizational Values

The core principles and beliefs that guide a company's actions and decision-making processes.

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