Ethical accounting question | Accounting homework help

Dixie Irwin is the department manager for Religious Books, a manufacturer of religious books sold through Internet companies.  Irwin’s bonus is based on lowering production costs.

Irwin has identified a supplier, Cheap Paper, that can supply paper at a 10% cost reduction.  The quality of the paper is not the quality of the current paper used in production.  If Irwin uses the company, her personal bonus goals will be achieved; however, other company goals may be in jeopardy.  What is the ethical issue?  Identify key performance issues at risk and recommend a plan of action for Irwin.

Please follow this template for answer:

Ethical Issue 24-1

Identify ethical issue –

Issue  –

Discuss side 1 –

what will happen? 

Who will benefit? 

What are the consequences?

Discuss side 2- 

what will happen? 

Who will benefit? 

What are the consequences?

Key Performance issues at risk –

What issue is at risk?

Why?

What should the company do instead?