Associated Charities Inc., a charitable organization in Brandon, Manitoba, has a standing agreement with Prairie Trust. The agreement allows Associated Charities Inc. to overdraw its cash balance at the bank when donations are running low. In the past, Associated Charities Inc. managed funds wisely and rarely used this privilege. Greg Glowa has recently become the president of Associated Charities Inc. To expand operations, Glowa is acquiring office equipment and spending large amounts for fundraising. During his presidency, Associated Charities Inc. has maintained a negative bank balance (a credit Cash balance) of approximately $28,000.
Required
What is the ethical issue in this situation? State why you approve or disapprove of Glowa's management of Associated Charities Inc.'s funds.