FINANCIAL MANAGEMENT: ETHICS
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Reply in 100 or more to the statement below about ethics
• You are the CFO for a small firm that makes kitchen appliances. Your company discovers a design flaw in one of your most popular models that will likely cause the death of one or two consumers. Your company’s lawyers tell you that you can quietly pay off the families for a very low amount – most of which will be covered by your existing product liability insurance policy. The cost of a product recall and a design fix, however, will be exorbitantly expensive to the point that it will bankrupt your company, force you to lay off every employee (and also put you out of a job). Your local economy is already terribly depressed, with high unemployment and thousands of homes in foreclosure.
• Do you take the company lawyer’s advice?
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