1.  On a systemic level, consider whether the practice of issuing earnings forecasts is good, bad, or indifferent.  Is the practice of issuing earnings

1.

 On a systemic level, consider whether the practice of issuing earnings forecasts is good, bad, or indifferent. 

Is the practice of issuing earnings forecasts a socially beneficial one?

Should the practice be encouraged, required, discouraged, or prohibited?

Does the practice encourage deception or manipulation?

2.

consider whether the corporate decision to issue an earnings forecast is ethically appropriate when the company has some
reason to suspect the forecast is misleading and investors may make decisions using the misleading forecast.

Should a corporate decision be based on the kind of information Lungren picked up in his private life.

Is Unicomp’s forecast really misleading, or would investors be aware of the imminent shortage of parts from other
sources anyway? Does the investors’ “right to the truth” mean that a company must exercise great or moderate care to
ensure that its forecasts are accurate? 

If it were you, would you 
· Issue no forecast,
· Issue Lungren’s prepared forecast, or
· Issue a different kind of forecast.

[Be honest as you are not graded on your ethical values, but more so on your ability to incorporate ethical considerations in your decisions]

View keyboard shortcutsEditViewInsertFormatToolsTable12ptParagraph

3.

In considering the ethically appropriate course of action for John to take, consider the following questions:
· What are the personal/corporate pressures and constraints under which John is acting? Possible
responses:
– Financial pressures for his family.
– The probability that even if he refuses, the company will still issue the prepared forecast.
– The probability that the investment community will discount the forecast anyway.
– The probability that the “rumor” of impending shortages will shortly become public anyway.

Based on these constraints, is John justified in issuing the prepared forecast even if he believes it is not accurate?

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Section A Input Data

Section A Input Data EduCredit is the education loan division of a bank. It is considering a batch of applications for student loans repayable in one year. EduCredit charges each loan applicants an annual interest rate that depends on the band of their credit scores (A is the highest) Loan

Homework  Channels and Metrics Note:  At the start of your DQ post,

Homework  Channels and Metrics Note:  At the start of your DQ post, remind us of the company and product/service you have chosen for your marketing campaign. Choose one social media channel and one traditional channel that you plan to use in your marketing campaign. For each channel, answer the following

BUSI46S15 Competitive Strategies & Organisational Fitness

BUSI46S15 Competitive Strategies & Organisational Fitness Postgraduate Programmes 2023/24 SUMMATIVE ASSIGNMENT – BUSI46S15 Competitive Strategies and Organizational Fitness Select an organization, identify its competitive environment (that is, the population it is a member of) [5 marks] Analyse (qualitatively) the ecological and institutional conditions in the population. [10 marks] Provide a