Based on the given information, we can identify several ethical issues involved in this scenario.
1. Not following accounting standards and ethics: Sue is being asked by the CEO to manipulate the company's financial statements by misrepresenting the progress of construction jobs and improperly expensing R&D costs. This action goes against the professional ethics and standards of the accounting profession.
To address these ethical issues, Sue should consider the following:
1. Analyze the situation: Sue should assess the potential consequences of the CEO's request. Manipulating financial statements can lead to legal issues, damage the company's reputation, and harm stakeholders, such as investors and employees. It is crucial to understand the gravity of the situation and the moral implications of complying with the request.
2. Follow accounting standards: Sue should adhere to the professional standards of the accounting profession, even if her boss instructs otherwise. This includes accurately reporting financial information, following recognized accounting principles, and maintaining the integrity of financial statements.
3. Seek guidance and support: Sue should reach out to her professional network or consult with other professionals, such as senior accountants or ethical advisors, to gather opinions and insights about the situation. They can provide guidance on how to navigate this ethical dilemma and propose alternative solutions.
4. Communicate concerns: Sue should express her concerns to the CEO, emphasizing the potential legal and ethical consequences of the requested actions. It is important to communicate openly and assertively about these concerns while maintaining professionalism and respect.
In terms of the decision-making approach, the Virtue Ethics approach seems appropriate. Virtue Ethics focuses on personal character traits and moral virtues to guide decision-making. Sue should consider the virtues of honesty, integrity, and responsibility in making her decision. She should prioritize doing what is morally right and in line with her professional obligations rather than succumbing to the pressures of her boss.
Overall, Sue needs to make an ethical decision based on her professional responsibilities and moral values, even if it means opposing her boss's request. Seeking guidance and following accounting standards will help her navigate this dilemma effectively.