Community Charities has a standing agreement with Royal Bank of Canada (RBC). The agreement allows Community Charities to overdraw its cash balance at the bank when donations are running low. In the past, Community Charities managed funds wisely and rarely used this privilege. Recently, however, Beatrice Grand has been named president of Community Charities. To expand operations, she is acquiring office equipment and spending a lot for fundraising. During Grand's presidency, Community Charities has maintained a negative bank balance of about $3,000.
Requirements
What is the ethical issue in this situation? Do you approve or disapprove of Grand's management of Community Charities' and RBC's funds? Why? Use the Framework for Making Ethical Judgments in Chapter 1 (p. 27) in answering this question.