70.2K

Verified Solution

Link Copied!

Please analyze this case study question about ethical issues using MANAGEMENT ACCOUNTING points

The case considers the ethical issues involved in making illegal copies of a software program by a professional management accountant. It is a busy day at the office and Joe Fordham is hard at work for the European Savings Bank. Joc is in a quandary. He has a piece of software at work that he believes makes him more efficient and effective at his job. Unfortunately, the bank purchased only one copy. Joe really wants to have access to the software at home and he also wants to share it with his colleagues. The problem is that Joe does not have the necessary funds to purchase an additional copy for himself and he does not want to ask his supervisor for additional copies until he can prove the worth of the software. Joe knows that he can easily copy the software to use at home and to share with his colleagues. He is debating whether he should make the copies. The following may be affected by Joe's decision. Nick Stringham Three years ago, Nick graduated from university with a combined major in computer science and accounting. Immediately after graduation, Nick spent rwo years and 400000 developing a computer software package, Loan Net, that provides a comprehensive loan analysis system. Loan Net has been proved to predict loan failures six months in advance of the failure date with 87% accuracy, far exceeding older methods that have only a 20% accuracy rate. His software is copyrighted and is being marketed by Data Sources SA. At the current time the software sells for S00 per copy. Sales to date have totalled just over 1000 copies, but the package has been well received and Nick is very excited about the future potential. In fact, he is currently working on an upgrade for the package. A friend recently told Nick that several banks may be using unauthorised copies of the program. SA. a medium-sized and rapidly geowing software diseriburion company with currene ales of E30 million. All software distributed by Data Sources SA is copyrighted, but because of customer complaints, copy protection devices were removed from all woftware packakes this year. Shelly is concerned thar, while many customens are pieased that it in now eisy to make back-up copies of Data Sources soffware, it will be difficult to control untuuthorised copies She has alvo heard rumours about Loan Net being copied. Joe Fordham Joe is a young managernetit accountant who was birtul lase yeat by Earopean Savings Bank, which has mulriple branches throughout Europe. He pectiously worked for a major accounting firm and specialised in bank andirs. He currently works in the foan department of Savings Bank and hopes to advance to Director of Finance within the neet five years. Joe has found that conspetition for promotion to Direstor is wery tighte. Jos wants desperately to demanstrate that he is Director material and, therefote, often takes wotk home. He leas a computer at bome with a spreadshect and a word processor, all of which be purchased himsdf and frequently uses for bank basiness. Recently, he has been working at the office with the single copy of Loan Net his company purchased and is very impressed with its performance. He believes that he could increase his productivity and, therefore, his chances for promotion if be had a copy of Loan Net for home use. Joe would also like to introdoce the peogram to colleagues at other branches and the four loan otficers whom he supervises. Joe doen'r want to spend fswo for a copy of Lean Net to use at home. He estimates that he ean save the bank a minimum of 62000 by making copies of Loan Net rather than purchasing them. Judy Wardley Jody is an internal auditor/accounting information wyyem acalyse at Furopetan Savings Bank. She is responsible for determining information nceds of management, for evaluating the means of providing this information, and for computer efucation and training She is in charge of both hardware and software acquisitions. Jedy wonderv about her reypoasebility to control software usage and account for copies of software. She knows some people wonld hike addatinnal copies of certain programs, but her budget for software is limited. Judy saspects that wome people may be making more than back-up copies of sotrware programs. Dave Saunders At 47, Dave is the dynamic and motivated [FO of European Surings Bark. He wants to see the bank rise from beitte the third most profitable in Eurupe to the firs. He takes an interest in his employees and expects hard wotk, expecially from those who wiah to tree in the manusement tanks. He is interested in identifying those individuals who have insight into ataking the bank more profitable. Three years ago, he was instrumental in operading both the mainframe and personal computet systems at the bank. He is concerned that there is increasing pressure from some individuals to acquire ncw softwate and he is unitare has much the softwate will really be used. Society Society in peneral is affected by the actions of software developers, software vendors and purchasers of the sotrware. The hasic objectives of society include an insposed standand of living. technological progress, and peotection of pervonal freedom. All behaviours, including software piracy, have potential costs and benefits to soxiety Society must adopt a stance tomands software piracy that will help achieve its goals and objectives

Answer & Explanation Solved by verified expert

See Answer