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Certified Management Accountant

Real-Life Activities

Real-Life Decision Making -- Solution

You decide to keep quiet about the layoffs.

Your assistant is laid off at the same time as everyone else. She realizes that you knew what would be happening ahead of time. She gets angry and refuses to speak to you for a couple of months.

This is the real-life decision made by CMA Lorinda McArthur.

"Decisions involving staff are a lot tougher than others," says McArthur. "A lot of times I have knowledge about a person's job that I can't relay to them. I have to make a decision not to say anything.

"In this case, it wasn't for me to warn them about the layoffs. The owners didn't want the staff to know ahead of time, so I had to keep quiet."

"I think that the information was described in confidence. If you didn't keep it confidential then rumors could cause a very serious problem," agrees CMA Jim Horsh. "You could be fired, but I think the greatest consequence is that you would lose your credibility. Credibility is very difficult to restore with others, not to mention restoring it with yourself."


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