Reference no: EM131520538

Question: A publicly-funded department within a local administrative authority provides a health advisory service to its local community. This is not a hospital. Its function is purely advisory in respect of preventive medicine and focuses on good health promotion and prevention of accidents and illness. In recent years, the funding for this service has been reduced in real terms, requiring greater levels of efficiency to be provided. The manager of the service has recognised the need to make economies. Despite receiving criticisms and complaints from the local administrative authority's elected representatives, the manager has reduced the level of service provision in an attempt to remain within budget. However, there has been no reduction in the staffing level which accounts for about 80 per cent of expenditure. Last year, an independent public audit report criticised the management of the service.

The report focused on the fact that the service overspent its budget, was considered to be inefficient in its methods of delivery, and wasted resources allocated to it. The report went on to state that according to annual performance statistics, there was a decline in the numbers of people using the service. It concluded that the service was failing to operate economically, efficiently or effectively. The result of this was that the local administrative authority reduced the funding still further and gave the manager a written warning that the whole service would be reviewed if there was not an improvement in this financial year. The manager has responded by making further cuts to the service, but has protected the staffing levels. It is projected that the service will remain just within its budget allocation this year.issues of public responsibility and the accountant's duty as a professional; difficult implementation problems.

The principal ethical issues in mining are:

1. The use of non-renewable resources. The mining operation results in a non-replaceable asset being extracted from the mine. This deprives both present owners and future generations. It is, therefore, important to ensure that proper and equitable compensation is provided to the original owners of the resources. Moreover, the resources extracted should not be wasted or used for frivolous purposes out of consideration for future generations.

2. The use of power in the negotiations. The negotiations will raise a number of issues which will bring an ethical component to the negotiations. In the negotiations, it is important that the profit motive does not cause the developer to act improperly and exploit the present owner of the mining rights. Where the country is poor, it is too easy to give inadequate return for the value extracted.

3. The environmental damage that will remain. ‘Lagoons full of poisonous water for at least 100 years' is clearly not an acceptable outcome for society. Router has an ethical responsibility to minimise the effect of this pollution. It would appear to be essential for the company to develop a plan to deal with the problem. It is likely to reduce the profitability of the project, as there are bound to be significant costs to treat the effluent, but to minimise the effect would appear to be the minimum responsibility of the company.

4. Impacts on the quality of life of local residents. The project must consider the effect of the mining operation on the local residents. Although they may benefit from the establishment of the mine in the area in which they live, it is likely that the pollution will also affect them. It is essential that Router explains the steps which will be introduced to minimise the effects on the local environment. This may reassure local residents that the company is adopting a responsible attitude towards the ethical aspects of the mining operation in their area.

5. Safety of processes. Mining is an industry noted for its poor safety record. Router must ensure that it conforms to best practice in the safety measures it follows, which may be more stringent than the legal minimums in the country of operation.