Rita Pelzer was just hired as the assistant controller of Zaz Stores Ltd., a retail company. Among other things, the payment of all invoices is centralized in one of the departments Rita will manage. Her main responsibilities are to maintain the company’s credit rating by paying all bills when they are due and to take advantage of all cash discounts.

Jamie Caterino, the former assistant controller, who has been promoted to controller, is training Rita in her new duties. He instructs Rita that she is to continue the practice of preparing all cheques for the amount due less the discount and to date the cheques the last day of the discount period. “But,” Jamie continues, “we always hold the cheques at least four days beyond the discount period before mailing them. That way we get another four 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 Canada Post. 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
(a) What are the ethical considerations in this case?
(b) Which stakeholders are harmed or benefi ted?
(c) Should Rita continue the practice started by Jamie? Does she have any choice?