Question Tag: Ethical Conflicts

MetroPower Limited, a major public utility company, was entrusted with providing electricity to millions of residents and businesses. Mr. Mark, the Lead Technician at MetroPower for many years, is responsible for maintaining the electrical grid to ensure reliable electricity supply to the city. MetroPower’s financial statements were subjected to annual audits.

When Mrs. Jennifer assumed her role as the department’s supervisor, she implemented cost-cutting measures aimed at reducing the budget allocated for routine maintenance. This decision raised significant ethical concerns, as Mr. Mark believed it would compromise the safety and reliability of the electrical grid. He knew that such actions could lead to power outages and electrical hazards.

Mr. Mark found himself in a dilemma, torn between his responsibility to make electricity available and the potential consequences of opposing his new supervisor’s cost-cutting measures. Mr. Mark documented his concerns, maintaining detailed records of previous maintenance schedules and their impact on the grid’s reliability.

The auditors came across the evidence of reduced costs of maintenance and inspections in MetroPower.

Required:

a. Describe public interest, using MetroPower as an example. (2 Marks)

b. Identify five matters with which public interest can be associated. (5 Marks)

c. In setting codes of ethics, it is stated that principle-based ethics are better than rule-based ethics. Justify this assertion. (5 Marks)

d. Explain why the concept of due care or reasonable care is important in a contract for the provision of services. (4 Marks)

e. State two likely implications of the auditors’ failing to act on the information they got in relation to reduced costs of maintenance and inspections at MetroPower. (4 Marks)