Ethical Obligations and Decision-Making in Accounting: Text and Cases 4th Edition by Steven Mintz,Roselyn Morris

Exercise 1

Sometimes in life things happen that seem to defy logic, yet that may be a sign of the times we are living in today. The following story applies to questions 1 and 2:
On October 15, 2009, in Fort Collins, Colorado, the parents of a six-year-old boy, Falcon Heene, claimed that he had floated away in a homemade helium balloon that was shaped to resemble a silver flying saucer. Some in the media referred to the incident as "Balloon Boy." The authorities closed down Denver International Airport, called in the National Guard, and a police pursuit ensued. After an hour-long flight that covered more than 50 miles across three counties, the empty balloon was found near the airport. It was later determined that the boy was hiding in the house all along in an incident that was a hoax and motivated by publicity that might lead to a reality television show. The authorities blamed the father, Richard, for the incident and decided to prosecute him. Richard Heene pleaded guilty on November 13, 2009, to the felony count of falsely influencing authorities. He pleaded to protect his wife, Mayumi, a Japanese citizen, whom he believed may have been deported if Richard was convicted of a more serious crime. Richard also agreed to pay $36,000 in restitution.
Identify the stakeholders and how they were affected by Heene's actions using ethical reasoning. What stage of moral reasoning in Kohlberg's model is exhibited by Richard Heene's actions? Do you believe the punishment fit the crime? In other words, was justice done in this case? Why or why not?