- 10 Marks
CSEG – Nov 2018 – L2 – Q2a – Business ethics
Discuss the ethical principles that would be breached if you agree to the IT Director's request in the cost-benefit analysis.
Question
The IT Director of Uswatu Ltd (Uswatu) has asked you to undertake a cost-benefit analysis of a proposed new IT system. The IT Director will use this analysis to convince the Board of Directors of Uswatu that they should invest in the new system. As part of your analysis, you found that the new system will not run properly on Uswatu’s existing computers. This means that Uswatu would have to replace most of their existing Desktop computers and servers, leading to an excess of costs over benefits.
The IT Director has suggested that you downplay the cost of replacing the IT infrastructure as he was sure that he ‘could find a work-around’ that would allow the existing computers to use the new software, though he was currently uncertain how this would be accomplished.
The IT Director has told you that he ‘expects’ the cost-benefit analysis to show a favourable result for the new system and has indicated that your future promotion prospects may depend on this.
Required:
Explain the IFAC’s fundamental ethical principles that you would be breaching if you agree to do the IT Director’s request. (10 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Cost-benefit analysis, Ethical Principles, IT System, Professional Integrity
- Level: Level 2
- Topic: Business ethics
- Series: NOV 2018