Case Study: The Magical $100,000 By Dennis Greer FACTS: On a weekday morning in 1975, there was an anonymous phone call to a cash teller at one of the nation's largest national banks. The anonymous caller stated that an employee had just stolen $100,000 from an electronics supply subsidiary of the bank. The Financial VP of the bank was notified; he called in one of the internal auditors and assigned him to solve the case. The auditor, working in conjunction with a retired FBI agent, employed a secretary and immediately set up an office at the electronics supply plant. An analysis of the accounting records showed that the theft involved inventory. The first step was to interview many of the 100 employees of the plant including all plant officers. None of the employees knew anything about the inventory. Analysis of the Accounts Receivable records showed that a major building construction firm owed only $9.54, though its supply trucks were always picking up large amounts of electronic inventory. Several days later the auditor was contacted by an attorney representing the building construction firm for an appointment for his client and himself. When the auditor arrived, the attorney stated, "I want you to know that my client has done absolutely nothing wrong! But here is some information you might like to know." The attorney then explained how the 30-year-old son of the president of the electronics supply plant would sell inventory at one-half price if the construction firm made out the checks to the son personally. They had, in effect, purchased $200,000 of inventory for only $100,000. This information of the theft was immediately supplied to the Financial VP and the bank's attorneys. Within 48 hours, the president of the electronics supply plant retired. His son had fled the state and $100,000 in cash was returned to the bank. QUESTIONS: 1. Who are the stakeholders? 2. What additional facts, if any, would you like to know before completing your analysis? 3. What ethical issues are involved at each of the Seven Levels of Integrity (nothing that not every case will have an issue at every level)? Law Contracts and agreements Professional standards Industry standards Local, regional, and area standards Personal relationships Moral and religious standards 4. What are the alternatives? 5. How does each alternative effect each stakeholder with respect to each ethical issue? 6. What is the best answer and why? 7. Do you think that the employees know of the lost inventory? 8. If they did, why didn't they tell more? 9. Were the president of the construction firm and his employees honest? 10. Had they done anything wrong? 11. Could they be sued? 12. Why do you think the father retired? 13. What was his responsibility? 14. Should the bank's corporate officers go to the police district attorney and request charges against the son on grand theft? 15. The bank received back $100,000 from the theft. Where do you think that money came from?

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Before proceeding with the analysis Ill address a couple of points It appears that this case study is fictional but it provides a scenario to analyze various ethical and practical considerations Here ... View the full answer