Barry Galvin is executive vice president of Community Bank. Active in community affairs, Galvin serves on the

Question:

Barry Galvin is executive vice president of Community Bank. Active in community affairs, Galvin serves on the board of directors of The Salvation Army. The Salvation Army is expanding rapidly and is considering relocating. At a recent meeting, The Salvation Army decided to buy 250 acres of land on the edge of town. The owner of the property is Olga Nadar, a major depositor in Community Bank. Nadar is completing a bitter divorce, and Galvin knows that Nadar is eager to sell her property. In view of Nadar's difficult situation, Galvin believes Nadar would accept a low offer for the land. Realtors have appraised the property at $3.6 million.

1. What is the ethical issue in this situation?
2. What are the alternatives?
3. Who are the ? What are the possible consequences to each? Analyze from the following standpoints: (a) economic, (b) legal, and (c) ethical.
4. Place yourself in the role of the decision maker. What would you do? How would you justify your decision?

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...