Read the following case study and answer all the following questions.

Professional Ethics Case Study

Pressure on a non-executive director to make a decision without adequate information

Outline of the case

You are a non-executive director of a medium-sized company. The companys financial director (who is also the company secretary) is advocating that the company make an acquisition and has implied that, if the company does not act quickly, the opportunity will disappear. The CEO has also said that she wants to move quickly. However, you are not convinced that the figures presented to you indicate that the acquisition is currently the right thing to do, and you think it warrants further discussion.

One year ago, shortly after you had joined the board, a similar decision was made which, to you, seemed unusual given the companys trading position at that time. However, none of the other board members (who had been on the board for several years) challenged the CEO.

You have tried to contact, through the company, an independent specialist to get an expert, impartial view on the acquisition. However, the CEO seems to be discouraging you from proceeding with this.

You are considering whether you should raise your concerns with other board members or simply allow the company to go ahead with what could be a profitable acquisition. Should you insist on waiting for impartial professional advice at the risk of the company missing the opportunity of the acquisition?

Questions

Question 1: Identify and explain the relevant facts from the case study (approx. 100 words).

Question 2: Identify the affected parties (approx. 50 words).

Question 3: Using references, define 2 of the five key fundamental principles and use examples from the case study to identify how they relate to the issue (approx. 200 words).

Question 4: Who should be involved in the resolution? (approx. 50 words).

Question 5: Suggest possible courses of action (approx. 200 words).

Total Word count: 600 words