This was a very interesting and informative case study which really covered two aspects of ethical issues. One being the potential failure of a product which was and could continue to harm both the company’s margins and stock price and of course the associated management bonuses and the other being a case of fraud on revenue recognition to boost quarter end sales.

The case study gave potential outcomes that the company, the officers and or the senior management did take, could have taken and should have taken.

Having read this case study, I have a more in depth perception of both the difficulties facing a corporation where it’s products can not only cost the public money but can also harm the public if there is a product fault. This is especially difficult in public listed companies where any adverse reputation can quickly affect the stock price. There is a fine line as to what a corporation legally has to report (through press releases etc.) and what they should report when there are any issues related to anything that can affect the public domain. In addition, reporting the incorrect information can lead to a loss in market confidence and loss of revenue and of course a sharp decrease in the stock price and the market value of the company. In this particular case which involved a company manufacturing artificial bone/joint replacements, as this is in the medical industry and has a direct impact on people and their welfare and indeed perhaps even their life, the need to be honest and transparent is all the more important and this was demonstrated in the case study. In addition to the ethical dilemma in the case study, there was also an added element of fraud caused by reporting sale to boost quarter end revenue which contravened the revenue recognition concepts. It was a clear case of fraud rather than a misinterpretation of the policy due to the evidence of collusion between the sales person and the customer which was not retained in the file for audit appraisal. It was clearly hidden. This gave an insight into the risks, that despite all the ethics and compliance training a company can give, if a particular individual is not on board, there is always the risk of non-compliance.

The objective of reviewing this case study was to see examples of a real life scenario where an important and high impact ethical dilemma existed. This case study clearly demonstrated this. In addition the fraud case gave an insight on what to do if a similar scenario ever occurred at y work place.

The wider impact of this case study is that it gives me the confidence to know that in the same circumstances, I would be able to make the correct decision and do the right thing. In addition, this is something I can always share with my team and staff.