Reference no: EM132557772

While Andrews Building Supplies' operations predominantly relate to building supplies, the company also owns a large block of apartments in the inner city.

You have been in the position for 1 month only and are on a probationary period of employment. You get on very well with the Managing Director and he is clearly well-liked by all staff, suppliers and customers.

The company had faced some serious cash flow difficulties shortly before you took up your position due to many of the apartments not being sold. However, a re-mortgaging arrangement has resolved this situation for the time being.

One morning the Managing Director comes to you with a company cheque for $5,000, which he has already signed. He asks for your counter-signature, explaining that it is the deposit for the design work and furnishings for some of the apartments. There is a formal invoice from a design studio, but you are surprised as you were not aware that any such outlays had been planned.

Nevertheless, given the explanation and the supporting invoice, you counter-sign the cheque.

Out of curiosity, you decide to conduct some research into the design studio. Your research shows that the company shareholders is your Managing Director's son-in-law.

A week later the Managing Director email you and asks you if you can come to his home urgently to countersign another cheque as he is out the office. The cheque is for $30,000 and he emails you the supporting invoice.

While it is difficult for you to ask, you email him to ask why this is urgent, especially because the previous invoice was paid, and no work has commenced to date to your knowledge.

Surprisingly the Managing Director calls you and explains that the cheque is needed to settle outstanding directors' loan accounts debts in his son-in-law's company as the financial year end is approaching.

Once the year end has passed, the money will be returned, and a supporting credit note will be received

Complete the following:

Question 1: Identify and describe the legal requirements and ethical issues associated with the workplace situation.

Question 2: Clearly explain the differences between the legal and ethical aspects of the situation, as well as how the differences between the two can impact decision making.

Question 3: Identify and analyse relevant ethical framework/s that should be applied to this situation. Describe each of the frameworks and explain why they are relevant to this situation.

Question 4: Identify any factors that may prevent the application of the ethical framework to this workplace situation and their importance to the situation.

Question 5: According to the organisational policy and procedures that i reviewed, how would this situation be handled?

Question 6: Identify at least two sources of advice and guidance that can be used to assist in the resolution of ethical issues. Describe each of the sources you have identified and explain why.