Controllership in Accounting

Employment Rules vs Personal & Privacy Concerns

Characters:         Sandy,the controller of ABC, Inc., a small manufacturing company

Jacob, the controller of Micro, Inc.,a small manufacturing company

Sandy is a controller of ABC, Inc., a small regionalmanufacturing company. During her

four years of employment at ABC, she has worked her way upthrough the ranks. She has

been the controller for the past year and has consistentlyreceived favorable evaluations.

Sandy enjoys her work and is good at what she does.

ABC, Inc., is close to finalizing a merger with Micro, Inc., asimilar manufacturing company.

The merger will be finalized in two weeks, on July 1. When thecompanies merge, various

positions will be eliminated to avoid duplication of efforts inthe merged company. A variety

of positions will be cut, including manufacturing workers,office staff, and management

positions. The decisions on personnel cuts will be announcedAugust 1.

Jacob, the controller of Micro, Inc., has been with that companyfor less than a year. He is

perceived favorably by management. The newly merged company willneed only one

controller, and Sandy has received unofficial confirmation thatshe will be the controller of

the new firm and that Jacob will be dismissed.

Sandy has had significant responsibility for her parents duringthe past two years. Her

father has terminal cancer, and the specialist has given himonly six months to live. Her

mother is emotionally distressed and needs special attentionfrom time to time. In addition,

after years of trying, Sandy has recently found out that she ispregnant. She plans to take a

short maternity leave and then return to work full-time.

Sandy realizes the time demands of her current and expertedfamily and also the time

demands of working as the controller of the newly mergedcompany. She feels that she will

be able to balance her personal and professional life in such away that her job performance

will not suffer. Yet, she wonders if she should make her bossaware of her responsibility to

her parents and her pregnancy.

Answer the following questions from the case above :-

1. What are the relevant facts of the case?

2. What, if any, are the ethical issues?

3. Who are the stakeholders?

4. What are the possible alternatives including any ethicalconcerns?

5. What are the practical constraints?

6. What action(s) should be taken?