FDP HOMESECURITY
FDP Company produces a variety of home security products. Gary Price, the company’s president, is concerned with the fourth quarter market demand for the company’s products. Unless something is done in the last two months of the year, the company is likely to miss its earnings expectation of Wall Street analysts. Price still remembers when FDP’s earnings were below analysts’ expectation by two cents a share three years ago and the company’s share price fell 19% the day earnings were announced. In a recent meeting, Price told his top management that something must be done quickly. One proposal by the marketing vice president was to give a deep discount to the company’s major customers to increase the company’s sales in the fourth quarter. The company controller pointed out that while the discount could increase sales, it may not help the bottom line; to the contrary, it could lower income. The controller said, “Since we have enough storage capacity, we might simply increase our production in the fourth quarter to increase our reported profit.”
You will be using Chapter 6 Ethics Challenge p 236 AND the IMA Code of Ethical Practice (found in doc sharing Week 2) as the basis for this written project. You will be required to review the case in the text and provide solutions to the situation along with any ethical concerns based on the IMA Code. This will be done in the form of a memo to Gary Price explaining your answer and why this is or is not ethical based on the IMA Code.
Grading Rubric:
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Category
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Grade
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Comments
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Student Name:
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Scale of 5-0 where
5=Requirements met
0=Requirements not met
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Format / Citations -20%
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o Format: Proper Memo format used
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o Memo uses, 1” margins, 12 pt font in Times New Roman style and pages are numbered
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*Remember if sources are not noted it is considered plagiarism
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o Citations: Sources used in the paper are cited in APA format (author name, date, page number if needed for direct quotes).
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o Sources are listed on a separate references page in APA format (alphabetical order by author, if there is one, with all needed information).
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Content / Quality -80%
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o Content: There is a clear concise opening segment including the purpose of the memo, the context and the specific task
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o There is a clear context section this is the event, circumstance, or background of the problem you are solving
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o There is a clear task statement where you should describe what you are doing to explain the problem
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o There is a clear summary statement that provides a brief statement of the key recommendations you have reached.
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o There is a clear discussion segment that includes all the details and research that support your ideas
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o There is a clear closing segment summarizing your key points for the reader.
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o There is a smooth transition between paragraphs.
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o The information presented including exhibits is accurate and terms are used correctly.
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o Concepts covered in class are incorporated into the paper.
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o No more than 20% of the paper was taken from outside sources.
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Paper is not less than 1 1/2 and not more than 2 pages of text (not including exhibits and reference page).
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o Quality: used the IMA Code and textbook to explain the problem and to tie in any ethical concerns in this case
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o Used proper grammar, spelling, and punctuation; did not use slang or other forms of casual language.
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o Submitted paper on or before the date due.
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o Extra credit if the report from the
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Total
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