Examine the importance of ethics in managerial accounting.
During several visits to the plant, you overheard some employees and mid-level supervisors discussing the issues related to the smelting furnace and some potential “solutions” to the current regulatory problem. Some are suggesting covering up the issue through false or misleading data reporting. You feel obligated to discuss the issue of ethical responsibility with the executive team. Analyze how ethics can affect the organization as a whole. Consider not only the financial impact but also the direct and indirect impact on stakeholders. Propose at least two recommendations that the company could implement to help ensure high ethical responsibility at all levels of the organization.