Martin Field has been the Controller of RUN, Inc. for five months and has discovered a number of irregularities in both inventory and receivables. He has managed to clean up the balance sheet, and he has temporarily accepted a compromise offered by the CEO for the Income Statement. However, he is not entirely convinced that this is the right thing to do and is now considering his course of action during the final reading.
Martin should indicate more clearly to the auditors what the problems were before this compromise was reached and how the compromise has been used to cover up the true nature of the income for this year. He should not allow the Income Statement to be printed in its present form.
I will examine this issue in terms first of the various elements of the dilemma facing Martin at this time to show why he is conflicted and why he must make a decision. I will consider the issue in terms of the moral theory of Aristotle, notably the definition of virtue and the application of the mean in determining optimal behavior. After analyzing the basic tenets of this moral theory, I will apply it to this specific case to show how Martin should view his options and what he should decide as to how to resolve his conflicts.
Martin's dilemma begins with his personal and professional situation. He had been unhappy with the marketing-type duties he had been assigned in his former position with a CPA firm, so the job with RUN was seen by him as a way out of that situation and as a doorway to a new opportunity. His desire to see his new position work creates a conflict when there is any problem which he sees as potentially damaging.
He has been put under pressure by others in the company. Originally, they withheld evidence from him. They then indicated that they knew of the problem, if not its scope. The pressure has been increased by the fact that the Whites are retiring and want to protect the value of their stock u...