Daniel’s conduct as a director of Berle Saving & Loan Association was not ethical. The problem stems from his background as being both a director for one company while being a business partner of Josh and Brad. This causes a conflict because there is an interlocking directorate. Daniel is in a high position in Berle where he is able to influence decisions made towards his own interests. Since he is a business partner of Josh, he overstepped his boundaries to help Josh and Brad. With this intention, he personally arranged for a $900,000 credit line from Berle to Josh. No one probably questioned Daniel’s actions since he is a director of the board. He is allowed to do as he pleases. However, Josh and Brad failed to pay this loan and the federal
Consider journal entry that recognized $35 million of revenue in 2001 from the EDS contract based on WorlCom’s expectation that the five-year required cumulative minimum payment would not be met. Based on your own analysis of GAAP, explain the propriety to impropriety of this journal entry.
The key facts in this case are fairly straightforward. The owner, Mr. Edwards, made the decision to repurchase company stock from an unhappy group of shareholders. To do so he liquidated his strong cash position and took out a short-term loan. The loan is now coming due and because of lower than expected sales the past few months due to a parts delivery issue Jackson does not have the money to repay the short-term loan. In addition to the shortfall of incoming cash from sales Jackson had received a large $4.2 million dollar order. To ensure that they could satisfy this order Jackson over bought raw materials by $2.44 million. Not only did the delivery interruption cause Jackson to delay sales and therefore income but the excess purchase of raw materials has cash tied up in inventory and not liquid to pay off the $5 million loan.
The purpose of this paper is to examine an ethical dilemma faced by a company who manufactures critical components for a pacemaker developer. The consequentialist ethical theory of utilitarianism will be used to evaluate the moral implications this company has in continuing further manufacturing for their pacemaker client. An overview of utilitarian ethics will be discussed, focused primarily around 17th century philosopher Jeremy Bentham’s ideas about ethics. His framework will be used to present factors that influence the transistor company’s business decision. Finally, the Utility Test and Common Good Test will be applied to the company’s predicament to help determine the correct ethical course of action for this
Our country is one where every day, new medical treatments and medicines are being discovered and being approved to help Americans battle all of the different diseases and conditions that affect us. In order for us to be able to get access to those medications and treatments, many people agree to become part of clinical trials, they are the first to receive the treatments, this helps to understand how the body will be affected and if the medication will be effective. People who are part of these clinical trials, go through extensive medical testing, and they must be of sound mind and
In the first ethical problem selected, two separate books were kept by personnel in the Adelphia financial management department with the intent of deceiving external auditors; thus leading shareholders and the public to believe that the company was ultimately worth more than it was in actuality. In the second, the Rigas family frivolously dwindled away public money for personal selfish consumption which is clearly a violation of the public’s trust. In the weeks following the unraveling of events and divulgence of information, a number of townspeople and investors were concerned that the family was rather free with shareholder money and further believed corporate money was used to finance public generosity as previously discussed in this paper (Barlaup, Hanne, & Stuart, 2009, p. 10).
Step 1: About 7% of the rich world's jobs are held by people from developing countries and an aging population who cannot fill the vacant positions currently available. Lant Pritchett proposal is to have 16 million of the poor became part of a guest worker program. In the United States for example; 3 million guest workers would stay 3 to 5 years, without citizenship. They could not bring their families, but they would have some protection through the certification process for these guest workers.
Ethical dilemma is the concept of a complex situation where there is no apparent answer or there are two competing solutions (Winch). It is unlikely that one will achieve the correct answer in an ethical dilemma as the answer will vary due to several factors influencing the person’s reasoning. Factors such as culture, environment, education, family, religion, age, gender, media outlets, etc. can influence someone’s point of view in an ethical dilemma. The case study, “Bankruptcy at the Philadelphia Inquirer” represents a dilemma with no clear or apparent answer.
“Hereditary Breast and Ovarian Cancer syndrome (HBOC) is an inherited tendency to develop breast, ovarian and other cancers. Inherited conditions are passed to an individual through their blood relatives. Although most cancers are not inherited, about 5% of people who have breast cancer and about 10% of women who have ovarian cancer have HBOC” (Patient Education Online, 2013). “HBOC is caused by an inherited change in a gene, called a mutation. The majority of HBOC is due to a mutation in either the BRCA1 or BRCA2 genes” (Patient Education Online, 2013). There are many risks for people with HBOC. These risks include having a higher risk of getting breast cancer (40% to 87% lifetime risk), a higher than usual risk of breast cancer before age
Morals are infrequently conflated or mistook for different methods for settling on decisions, including religion, law or ethical quality. Numerous religions advance moral choice making yet don't generally address the full scope of moral decisions that we always come across. Religions might likewise advocate or deny certain practices which may not be viewed as the correct area of morals, for example, dietary confinements or sexual practices (K.A. Francis, Demand Media, 2014). A decent arrangement of law ought to be moral, however, the law sets up a point of reference in attempting to direct all inclusive rules and is subsequently not ready to react to individual connections.
It is a relevant ethical dilemma because it is a situation in which an ethical decision needs to be made by a businessman (CFO of Gabriel Resources) where viable options to this case are available which will be judged further in this essay by applying ethical theory and concepts.
Luke is an employee of ABC Company. He has been assigned to a construction of an adult entertainment retail store within a neighborhood his brother, Owen, lives in. The development of the retail store has not been made public yet and will be announced one month from today. This announcement will decrease the property values of the surrounding areas significantly. Owen is trying to sell his house. He told Luke that he recently received an ‘okay’ offer. However, in hopes that a better offer might be present itself in a few years after the real estate market improve, he has not taken the offer yet. Luke is very close to his brother, which makes him concerned about his confidentiality obligation to ABC Company.