Simply Academic: Linking Reporting Environments

Abstract

This instructional case attempts to connect the environmental incentives and ethical issues from two different reporting environments. It provides two different scenarios that allow students to identify and grapple with multiple incentives and resultant ethical dilemmas present in the academic reporting environment. A summary then requires students to link stakeholders, activities, incentives, and dilemmas in the academic environment to corresponding situations in the financial reporting environment. The purpose of the case is threefold: (1) It makes students aware of the incentives and ethical issues present in various reporting environments. (2) By explicitly linking the academic and financial reporting environments, students see the relevance of ethics in their current lives and are motivated to develop ethical habits now in order to prepare for the challenges that will occur later in their careers. (3) The case forces students to practice making decisions in situations with conflicting incentives and ambiguous or nonexistent legal guidance. Strong conflicting incentives can cloud and compromise even the purest of intentions. Dealing with these conflicts early and often can mature one's judgments and improve the decision-making process.