Learning outcomes: (LO4) Incorporate ethical dimensions of business decision-making,… 1 answer below »

Learning outcomes: (LO4) Incorporate ethical dimensions of business decision-making,

Assume that you are working as financial manager at one of the biggest corporations in beauty industryin Doha and you have been asked to advise the company’s management and Board. The case bellow is story about ethical issue in the beauty company. To provide the advises you need to use Ethical Decision Making strategy.To do that you first of all, need to clearly state the main ethical issue, highlighting the ethics of the dilemma, identify each alternative. Remember you need to have more than one alternative. Focus on the main alternatives (three at most).You must provide an analysis of each alternative identifying which stakeholders are benefited and which stakeholders are harmed. Based upon your analysis Make your recommendation.


You are the financial manager of beauty company. The company needs to acquire a loan in order to finance the remodeling of the production facilities. They are at a competitive disadvantage with the current facilities. A loan contract that beauty company currently has with Qatari real Bank requires them to maintain a certain profit margin and current ratio. The income, profit margin, and current ratio of this year are not favorable. The beauty company has been using the LIFO method to value its inventory. Mr. Adam, the CEO of beauty company, has asked you to change the inventory valuation method from LIFO to FIFO which will cause income and the related ratios such as current ratio to increase. If you make this change beauty company can meet the requirements of the loan contract and qualify for the additional loan.


Evaluate the case taking in account the following considerations;

1. What is the main ethical issue? (State this as an ethical dilemma.) (1 mark)

2. What are the relevantfacts? (1 mark)

3. Why do you think using FIFO rather than LIFO will increase the income and related rations

such as current ratio (explain the relation). (2 marks)

4. What stakeholders may be benefited or harmed? (1 mark)

5. What are your specific responsibilities and obligations? (1 mark)

6. Identify the alternatives? (Clearly state) (1 mark)

7. What is the benefit and harm of each alternative? (1 mark)

8. What action should be taken? Select the best or most ethical alternative, considering all thecircumstances and the consequences. (1 mark)

Good formatting(1 mark)


Please note that the writing should be in essay style (short introduction, discussion and short conclusion). Use Times New roman with font size 12, line and paragraph spacing 2. Title page should be included (name and student identity number). Number of the assignment’s words should be between1000- 1200 words.

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