Assignment 3

Assignment 3 - May 19, 2010 LAW 500 LEG 500 LAW, ETHICS,...

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May 19, 2010 LAW 500 LEG 500 – LAW, ETHICS, AND CORPORATE GOVERNANCE LEG 500 – Assignment 3 An Ethical Analysis of a Case Study: “A Real-Life Situation” Dagmar Sousa Strayer University
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May 19, 2010 LAW 500 Introduction Ethics and ethical behavior are a wide field and play an important role in the business world. It is not an easy task to make ethical decisions in the business world is. There are company related ethical business decisions as well as personal aspects. Both influence every business decision. This can make the decision part very complicated for an individual. Most people try to make decisions which are ethical, but it always depends on their and the companies ethical moral standards. In some cases the business and the personal ethical standard may differentiate. That makes it harder for the individual to make an ethical decision. Background The case study “A Real-Life Situation’ is about a working family in America. Dennis and Elaine are married with one child. Elaine works at United Banc Corporation (UBC) and her husband Dennis works in the import-export business. Elaine was with UBC as it grew from a small company to a mid-size international company. Elaine was promoted to senior financial manager. Her area of responsibility was dealing with loans between $500,000 and $40 million. Everything above $40 million needed approval from a more senior vice president. As a senior financial manager, Elaine had the power to approve or deny loans. She managed loan applications for Graphco, Inc., an unnamed Canadian company, Electrode International, an unnamed Brazilian company, and ABCO. Elaine denied the loans for all of these companies except for the loan to ABCO. Her decisions were based on several different ethical aspects as well as legal aspects.
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May 19, 2010 LAW 500 Legal Analysis One loan Elaine denied was by Graphco Inc. a subsidiary of a tobacco firm. Graphco Inc. were accused of promoting their tobacco products to children. The loan was denied for ethical reasons; even though she could not find any issues in the financial reports. Graphco Inc. was under legal suspicion through promoting to children. Another loan Elaine didn’t approve was to the unnamed Canadian company. This Canadian company exported cigars from Cuba. This was reason enough for Elaine to not approve the loan for the Canadian company. Her reasoning for not approving the loan was the U.S. embargo against Cuba (U.S. DEPARTMENT OF STATE; 2006). In this case she didn’t even make direct business with Cuba; it was the Canadian company who made business with Cuba. Electron International wanted a loan for $50 million from UBC. Elaine recommended not approving the loan. One reason was the company had reported high profits over a two year period and Elaine was not able to find a reasonable explanation. Another reason Elaine opposed granting the loan was based on the knowledge she gained through her husband Dennis. Through him she learned that Electron International was fixing prices for their products. Elaine
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This note was uploaded on 03/10/2012 for the course LEG 500 taught by Professor Sette during the Spring '10 term at Strayer.

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Assignment 3 - May 19, 2010 LAW 500 LEG 500 LAW, ETHICS,...

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