Analyzing Ethical Responsibilities in a Management Decision

Very Hard Professional Standards Application Responsibilities To Employers

As a newly promoted senior analyst at QRS Investment Management, Alice discovers that her firm is planning to replace their current trading system with a proprietary platform developed by a third-party vendor. While reviewing some of the promotional materials provided by her firm's management, Alice recognizes that several claims made about the system's capabilities and track record are not fully substantiated by evidence. Alice knows that the company is eager to present this upgrade positively due to competitive pressures.

Feeling uneasy about the representations made, but wanting to maintain her role and reputation within the company, she contemplates her next steps. She recalls the CFA Institute's Code of Ethics and Standards of Professional Conduct, particularly regarding their relevance to her responsibilities to her employer.

In this context, which course of action should Alice take in alignment with her ethical responsibilities to her employer?

Alice should immediately raise her concerns with senior management and demand the claims be corrected before the launch.

Alice should document her concerns and suggest conducting an internal review of the vendor's claims before implementing the system.

Alice should disregard her concerns as they may jeopardize her relationship with senior management, focusing instead on her job performance.

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