Page 142 - BA1 Integrated Workbook STUDENT 2018

Subject E3: Strategic Management

3.3 BFF is a website that offers romantic matchmaking services for its customers.
The site is designed to match customers together with their ‘ideal’ partner.
Customers pay a monthly fee for this service.

In recent months, two of BFF’s rivals have seen customer data stolen by
hackers and published online. BFF currently fully complies with all data security
regulations (as did its rivals), but it has decided to add additional encryption into
its systems. While this is expensive, BFF feels that it will benefit financially as it
will help them to retain customer confidence and potentially attract customers
from rival sites.

Which ethical stance (as popularised by Johnson, Scholes and
Whittington) most closely matches BFF’s actions?

A Shaper of society

B Short term shareholder interest

C Long term shareholder interest

D Multiple stakeholder objective

3.4 J is a professional accountant. She has recently been approached by her
supervisor and asked to produce a financial analysis of a new strategy
(something she has done many times in the past). Her supervisor has stated
that her analysis must show a positive return so that the board can be
convinced of the need for the new strategy – even though J’s initial work has
indicated that the proposal looks to return a significant loss.

J’s supervisor suggested that she would be overlooked for promotion in future if
she failed to produce the report as he requested.

If J does as her supervisor requests, which THREE of the following
fundamental ethical principles would she be primarily breaching?

A Integrity

B Professional behaviour

C Professional competence

D Confidentiality

E Objectivity

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