Ethical Implications and Decision-Making Process for Harper Hardware Store Introduction Managing the accounting duties for Harper Hardware Store presents several ethical and business challenges. The store's informal policies, unchecked credit extensions, and internal theft are critical issues that need addressing to ensure the business's sustainability and integrity. This discussion will explore the ethical implications and outline a decision-making process to address these challenges. Ethical Implications Credit Extension Without Checks: Issue: Extending credit to friends without conducting credit checks can lead to financial instability and unfair business practices. Ethical Concern: This practice can be seen as favoritism and may result in financial losses due to uncollectible receivables. Action: Implement a formal credit policy that requires credit checks for all customers. This ensures fairness and reduces the risk of bad debts. Employee Theft: Issue: An employee, who is also a family member, has been pilfering cash. Ethical Concern: Theft undermines trust and can lead to significant financial losses. It also sets a poor example for other employees. Action: Conduct a thorough investigation and take appropriate disciplinary action. Implement stronger internal controls to prevent future theft. Declining Financial Ratios: Issue: Key financial ratios have been trending downward over the past five years. Ethical