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Business sustainability

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Business sustainability essay assignment

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The case study: Sue, who is a Chartered Accountant (CA), is the Financial Controller of X Pty Ltd (X). The company imports and distributes one product only and employs 21 people including the owner, Joseph. This product is imported from Spain. X has a history of profitability and stable growth. However, in the past 6 months Sue has been frustrated with Joseph’s apparent lack of interest in the business. Customer complaints are increasing and service levels are declining. As a result, sales have started to fall for the first time since the company commenced operations. Joseph places a great deal of reliance on Sue, both for her financial expertise and her ability to keep things on track when Joseph is on one of his many overseas trips. One day Sue receives a phone call from a friend, Jackie. Jackie is also in the import and distribution business, although with a completely different product. Jackie advises Sue that she has recently had several meetings with the manufacturers of the product imported and distributed by X. The manufacturers are of the opinion that X can no longer provide the required levels of service and have decided to cancel X’s contract and award the distribution rights to Jackie’s company. Jackie then invites Sue to come and work for her when X inevitably collapses. She offers Sue a substantially higher salary than the one she currently earns. In addition, she would like Sue to recruit X’s best operations staff to come to Jackie’s company with her. Jackie says to Sue ‘. . . obviously, this is confidential so don’t mention it to anyone just yet, especially Joseph’.

Required:  Answer the following questions, i.e. (a) to (d) inclusive, based on the Case Study presented above on page 2 and assume that you are Sue, the financial controller of X Pty Ltd.

(a) Identify the relevant facts of the above case study to your role as financial controller of X Pty Ltd.

(b) List the four key stakeholders affected by the above case study.

(c) With reference to the Code of Ethics for Professional Accountants (CPC), identify the relevant ethical principles that Sue should consider in dealing with this situation. Discuss how each ethical principle you identify applies to the facts of the case study. Set your answer out to part (c) as follows: Ethical principle Discuss how the principle applies to the case study

(d) Explain the consequences of each of the following actions that Sue (i.e. you) could choose: o say nothing; or o tell Joseph. 2 Reference List: Includes any references you have used and cited in your report. You must use the Harvard referencing system as per the guide available from the UWS library website. (Note: the reference list is not included in the word count)

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