Raymond Diaz was recently hired as assistant controller of RD Chem Inc., which processes chemicals for use in fertilizers. Diaz was selected for this position because of his past experience in chemical processing. During his first month on the job, Diaz made a point of getting to know the people responsible for the plant operations and learning how things are done at RD Chem. During a conversation with the plant supervisor, Diaz asked about the company procedures for handling toxic waste materials.The plant supervisor replied that he was not involved with the disposal of wastes and suggested that Diaz might be wise to ignore this issue. This response strengthened Diaz' determination to probe this area further to be sure that the company was not vulnerable to litigation. Upon further investigation, Diaz discovered evidence that RD Chem was using a nearby residential landfill to dump toxic wastes. It appeared that some members of RD Chem's management team were aware of this situation and may have been involved in arranging for this dumping; however, Diaz was unable to determine whether his superior, the controller, was involved. Uncertain how he should proceed, Diaz began to consider his options by outlining the following three alternative courses of action: Seek the advice of his superior, the controller. Anonymously release the information to the local newspaper. Discuss the situation with an outside member of the board of directors with whom he is acquainted. Required: For each of the three alternative courses of action that Raymond Diaz has outlined, explain whether or not the action is appropriate according to the Standards of Ethical Conduct for Management Accountants.
Raymond Diaz was recently hired as assistant controller of RD Chem Inc., which processes chemicals for use in fertilizers. Diaz was selected for this position because of his past experience in chemical processing. During his first month on the job, Diaz made a point of getting to know the people responsible for the plant operations and learning how things are done at RD Chem. During a conversation with the plant supervisor, Diaz asked about the company procedures for handling toxic waste materials.The plant supervisor replied that he was not involved with the disposal of wastes and suggested that Diaz might be wise to ignore this issue. This response strengthened Diaz' determination to probe this area further to be sure that the company was not vulnerable to litigation. Upon further investigation, Diaz discovered evidence that RD Chem was using a nearby residential landfill to dump toxic wastes. It appeared that some members of RD Chem's management team were aware of this situation and may have been involved in arranging for this dumping; however, Diaz was unable to determine whether his superior, the controller, was involved. Uncertain how he should proceed, Diaz began to consider his options by outlining the following three alternative courses of action: Seek the advice of his superior, the controller. Anonymously release the information to the local newspaper. Discuss the situation with an outside member of the board of directors with whom he is acquainted. Required: For each of the three alternative courses of action that Raymond Diaz has outlined, explain whether or not the action is appropriate according to the Standards of Ethical Conduct for Management Accountants.
Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter16: Business Competition: Antitrust
Section: Chapter Questions
Problem 10QAP
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Transcribed Image Text:Raymond Diaz was recently hired as assistant controller of RD Chem Inc., which
processes chemicals for use in fertilizers. Diaz was selected for this position because
of his past experience in chemical processing. During his first month on the job, Diaz
made a point of getting to know the people responsible for the plant operations and
learning how things are done at RD Chem.
During a conversation with the plant supervisor, Diaz asked about the company
procedures for handling toxic waste materials.The plant supervisor replied that he
was not involved with the disposal of wastes and suggested that Diaz might be wise
to ignore this issue. This response strengthened Diaz' determination to probe this
area further to be sure that the company was not vulnerable to litigation.
Upon further investigation, Diaz discovered evidence that RD Chem was using a
nearby residential landfill to dump toxic wastes. It appeared that some members of
RD Chem's management team were aware of this situation and may have been
involved in arranging for this dumping; however, Diaz was unable to determine
whether his superior, the controller, was involved.
Uncertain how he should proceed, Diaz began to consider his options by outlining
the following three alternative courses of action:
Seek the advice of his superior, the controller.
Anonymously release the information to the local newspaper.
Discuss the situation with an outside member of the board of directors with
whom he is acquainted.
Required: For each of the three alternative courses of action that Raymond Diaz has
outlined, explain whether or not the action is appropriate according to the Standards
of Ethical Conduct for Management Accountants.
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