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Mr Johnson, Owner of VB Accounting Services, has provided you with an ethical dilemma -- see below

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Mr Johnson, Owner of VB Accounting Services, has provided you with an ethical dilemma -- see below. Please review the information carefully and provide your response in the form of an essay.

During a routine quality control test, Momentum Motor Corporation, a multi-national automobile manufacturer, discovered an issue with some of its vehicles that could pose serious risks to its customers. After performing extensive research and analysis, it was determined that the problem is a faulty brake system, which could result in a driver losing complete control of his/her vehicle.Based on the sampling technique employed by Momentum, 5% of the automobiles that were tested showed the defect. On average, the Company produces and sells about 3.5 million vehicles per year. 60% of sales are made outside of the United States. After consulting with its accounting and legal teams, Momentum determined an estimated cost of $4.0 Billion, in parts and labor, to fix all vehicles that could be affected by the faulty brake system. Deciding not to fix the problem could result in accident (which could be fatal), lawsuits, etc. Information about the issue has not yet been made available to the public.

Instructions: Answer the following questions:

1. What is ethics?

2. How might ethics differ across cultures, countries, etc.? What do you think are some of the reasons for these differences?

3. What are the factors that contributed to the development of your ethics and values?

4. What is the ethical dilemma in the situation presented above?

5. What are possible options available to Momentum Motor Corporation for dealing with the situation? For each option, identify and discuss how each group of stakeholders (e.g., employees, investors, etc.) could be affected (i.e., both positively and negatively). Note: Please consider the global nature of the Company’s operation.

6. If you were an advisor for Momentum Motor Corporation, what action(s) would you encourage the Company to take to deal with the situation?