Instructions What are the ethical considerations in this case? Who are the stakeholders that are harmed or benefitted in this situation? Should Anita continue the practice started by Chris? Does she have any choice?
Anita Zurbrugg was just hired as the assistant treasurer of Yorktown Stores. The company is a specialty chain store with nine retail stores concentrated in one metropolitan area. Among other things, the payment of all invoices is centralized in one of the departments Anita will manage. Her primary responsibility is to maintain the company’s high credit rating by paying all bills when due and to take advantage of all cash discounts.
Chris Dadian, the former assistant treasurer who has been promoted to treasurer, is training Anita in her new duties. He instructs Anita that she is to continue the practice of preparing all checks “net of discount” and dating the checks the last day of the discount period. “But,” Chris continues, “we always hold the checks at least 4 days beyond the discount period before mailing them. That way, we get another 4 days of interest on our money. Most of our creditors need our business and don’t complain. And, if they scream about our missing the discount period, we blame it on the mailroom or the post office. We’ve only lost one discount out of every hundred we take that way. I think everybody does it. By the way, welcome to our team!”
Instructions
- What are the ethical considerations in this case?
- Who are the stakeholders that are harmed or benefitted in this situation?
- Should Anita continue the practice started by Chris? Does she have any choice?
Answers should be within 150 to 350 words for the entire case.
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