What should WMC have done when the mistake was discovered?

The mistake thus discovered was a fault of the senior management staff of WMC. Ernest Henry was falsely accused of the consequences. However the reduction in the share of the company had affected the goodwill of WMC (Hoyle, 2012).  The investigation report showed that due to shortcomings on the part of the senior level management especially Hug Morgan, the managing director and the exploration manager, the mistake was incurred. Although the investigation team confirmed that the mistake was not that severe and hence the company did not take the stringent decision of employee dismissal.

However the decision of reducing the work load and curtailment of the personal and political activities should not have been the only punishment for the senior officials. WMC in this respect should suspend the officials from their duties for at least 6 months. In addition to that the exploration manager should have been transferred to some other department apart from the exploration department due to the breach of trust of the company (Baker, 2011)..

The company is seen to form a new executive committee to review and discuss the present scenario (Hoyle et al. 2012). Hence the company should also make Hugh and the exploration manager accountable for their lack of responsibility to the committee and charge them with penalties. The ethical issues relating to false accusation of Henry should also be clarified from by WMC. Finally WMC should also integrate a review committee who will make the laws relating to the ethical failures of the employees in any future circumstances.

Books

Baker, R. (2011). Advanced financial accounting. New York: McGraw-Hill Irwin.

Hoyle, (2012). Advanced accounting. [S.l.]: Mcgraw Hill Higher Educat.

Hoyle, J., Schaefer, T. and Doupnik, T. (2011). Advanced accounting. New York: McGraw-Hill Irwin.