Question - You have landed a position in the Controller's Department of a major Philadelphia bank with significant cash flow problems and declining asset valuations. You discover that the company has failed to alert its auditors or the SEC to the fact that they have been engaged in complicated financial transactions just before the end of each quarter that materially misstate and enhance their balance sheet position. You discuss the implications of these actions with the CFO when she invites you to lunch. The CFO argues that this strategy is in the best interests of the stockholders and the bank's employees (thousands) since they need to keep the company afloat until the markets turn around.
(Approaches: Utilitarian, Rights, Fairness, Common Good, Virtue)
Required:
1. Discuss two different approaches to ethical decision-making as they relate to the case above. What is the basic premise behind each approach? (Answers 1A & 1B below)
2. Do you agree with the CFO's argument? Why or why not?
3. What, specifically, would you do next in the above situation? Why?