Tinaan, Alexis Jaina E.

3A4 Formative Assessment no 3

M1F3_Class Activity_Kohlberg
Refer to the case below:
After passing the preliminary certification exam (CPA / CMA / CISA) and finishing a management
development program, Lee was appointed by a multinational organization as one of the associate managers
for a division in accounting. The senior manager for the division informed Lee that Lee can claim
reimbursements for business-related expenses amounting to P2,000 per month. All you need to do is to
accumulate the receipts and submit them to the payroll division but to be frank, no one really checks, the
senior manager told Lee. Everyone here is claiming for the benefit, she added. For this month, Lee does not
have any business-related expenses. The senior manager told Lee its fine to charge personal expenses,
anyway the amount is immaterial.
In 30 minutes, Lee is about to pass your time and expense report to the senior manager for approval. What
should Lee do and why? Adapted from: Phantom Expenses, https://www.ethicsops.com/phantom-
expenses-case

Based on our discussion complete the table below, the first row has been completed for your reference:
Level Stage Description Decision based on the case

1 1 Moral reasoning is based on the person’s Lee will not submit his/her personal expenses for
immediate self, considering the avoidance of reimbursement due to fear of punishment from
punishment. the payroll department. Lee knows that there is a
chance that the payroll department might see the
misdeclaration and misfiling of expenses.

1 2 Moral reasoning is based on the strategic self
and the persons’ interests in the long run; to
satisfy personal needs by using instruments.
Effort is made to secure the greatest benefit
for oneself.
Lee will submit his/her personal expenses for
reimbursement because this will serve as an
instrument to lessen his personal expenses so he
can use the money on something else that would
benefit him the most and make him happier.

2 3 Moral reasoning is based on your immediate
circle where you want to be labeled as a good
boy or a nice girl. Effort is made to secure
approval and maintain friendly relationships
with others.
Lee will submit his/her personal expenses for
reimbursement because everyone else does it and
doing this would make him feel like he belongs.
He/she will follow the role models within his
immediate circle.

2 4 Moral reasoning is focused on the society at
large and the ways to better protect their
interests. It focuses on the morality of the
law and ones duty to societal order.
Lee will not submit his/her personal expenses for
reimbursement because he/she would want to
follow the rules to maintain law and order, even
if everyone else is not following it. Submitting it
would be equivalent to lying and stealing the
money, which the law prohibits.

3 5 The focus of the moral reasoning is based on
the social contract orientation and ones’ own
interpretation of social values. It focuses on
a utilitarian rule that would make life better
for everyone.
Lee will not submit his/her personal expenses for
reimbursement because the multinational
organization he works on provides fair benefits
and he should not abuse this privilege given to
him. Even if everyone else does it, it does not
make it acceptable, so he/she should not follow
their lead. If all employees would submit their
personal expenses for reimbursement, even if

3 6 The focus of moral reasoning is not yourself,
others, or the law, but the Universal Ethical
Principle that goes beyond the law. Morality
is based on principles that transcend mutual
benefit.
References
The Psychology Notes HQ (2020), Retrieved from: https://www.psychologynoteshq.com/kohlbergstheory/
they are immaterial, together they would sum up
to a material amount that could adversely affect
the financial position of the firm they work on,
which could lead to the bankruptcy of the firm,
which would result to the employees losing their
jobs.
Lee will not submit his/her personal expenses for
reimbursement because Lee would think about
bringing justice to the firm he works on. Because
if he were to be the owner of the multinational
firm, he would not want to be cheated on by
his/her workers like this.