You are finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and you have been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board.  You study the report, conduct appropriate research, and assess the costs involved. You conclude that it will be necessary to increase staff costs, but you believe these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations:  Benefits should be related to the length of service of members of staff.  After one year of continuous employment, a member of staff will qualify for private health insurance.  Private health insurance should cover the member of staff and his or her spouse, but no other members of the employee’s family.  Enhanced pension benefits will accrue to all staff after one year of service.  You decide to advise the board that the consultant’s recommendations should be adopted in full.  You are pleased with your work on this assignment, and feel confident that

Principles of Accounting Volume 2
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Chapter9: Responsibility Accounting And Decentralization
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You are finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and you have been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. 

You study the report, conduct appropriate research, and assess the costs involved. You conclude that it will be necessary to increase staff costs, but you believe these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: 

Benefits should be related to the length of service of members of staff. 

After one year of continuous employment, a member of staff will qualify for private health insurance. 

Private health insurance should cover the member of staff and his or her spouse, but no other members of the employee’s family. 

Enhanced pension benefits will accrue to all staff after one year of service. 

You decide to advise the board that the consultant’s recommendations should be adopted in full. 

You are pleased with your work on this assignment, and feel confident that the proposed package of benefits should serve as a strong motivator to all staff. 

Your personal circumstances mean that you will benefit greatly if the board accepts the consultant’s report. You have been with the organization for eleven months. You have recently become engaged to your girlfriend, who works in a different department. She has handed in her notice, as you both decided that it was inadvisable to work so closely together after you are married. Her new job will provide a slightly lower salary, and you are both saving hard to buy your first home. The date of your wedding is only two months away, but you do not intend to start a family in the near future. You have been concerned about starting to provide for your pension, and neither you nor your fiancée have been able to afford health insurance. 

 

Identify the ethical issues that are present in the scenario?

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