To Adjust or Not to Adjust: the Case of Bnb Credit Union Essay

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Case 2: Ethics To adjust or Not to Adjust: The case of BNB Credit Union ACCT 315-01 September 5 2013 Personal Ethical Code What do you consider to be right and wrong? I am a Buddhist. What I believe to be right is to follow five precepts of Buddha: abstaining from harming living beings, stealing, sexual misconduct, lying, and intoxication. In addition, I will follow rules and regulations made by specified society or countries or organizations. On the other hand, not following the conducts mentioning above will result in wrong doings for me. What is your priority in life? My priority in life is to stay alive with good health and to obtain a regular and sufficient income. My top priority is to make my family, as well as the…show more content…
Questions: a. Assume you are Sam, what would be the reasons and rationalizations for approving the loan? If I were Sam, first of all, I would reconsider this loan to see whether it is within the range of company policy and rule. As shown in the background information, “The Beiterman family has offered the management team significant bonuses if they can improve profits during the upturn without exposing the credit union to too much risk”, I see this as a very important point because the priority of the owner is not to invest in risky loan. In this case, the investment is obviously risky. Because of that I would not agree to give a million dollars loan to DSO. Secondly, I do believe that it will directly affect me as a manager of BNB. What if DSO does not use the loan well and their action will lead to negative consequences for BNB? Personally, I would like to get huge bonus. However, I do not want to make decision that would negatively affect others: for example, in this case, my company and co-workers. For Sam, a possible consequence could be losing his job and end up with a bad reputation. On the other hand, I would not convince my coworkers to do risky things by just saying what benefits you could get, for example, “Just let it go, and I’ll make sure I’m not the only one that enjoys a good bonus at the end of year”. Generally, it sounds good. However, I do think that: As a manager, I must take full

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