Community Bank has a loan receivable from IMS Chocolates. IMS is six months late in making payments
Question:
French learns that IMS is depending on landing a contract with Snicker Foods, another Community Bank client. French also serves as Snicker Foods loan officer at the bank. In this capacity, French is aware that Snicker is considering bankruptcy. No one else outside Snicker Foods knows this. French has been a great help to IMS and IMSs owner is counting on French’s expertise in loan workouts to advise the company through this difficult process. To help the bank collect on this large loan, French has a strong motivation to alert IMS of Snickers financial difficulties.
1. What is the ethical issue in this situation?
2. What are the alternatives?
3. Who are the stakeholders? 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,...
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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