Read the following and respond to the questions below.
M.K. Gallant is the president of Kranbrack Corporation, a company whose stock is publically traded. In a meeting with stockholders at the first of the year, Gallant stated profits would rise by 20%. It is now November, Stan Richart, the vice president in charge of the technologies division sees making the target profit for his division will be difficult. He directed the following:
- Discretionary expenses be delayed until the beginning of the new year
- On December 30th, he discovered that a warehouse clerk had ordered $350,000 of parts in early December. Even though the parts were not needed until February of the next year. These parts are ordinarily expenses when received and Richart ordered them sent back. The parts have been received and the supplier will not accept returns.
- Gallant ordered the receiving dock to change the dates on all products received between December 25th and December 31st to the first week in January.
1. Are the actions ethical? Explain why or why not.
2. Does the general management philosophy and accounting policies at Kranbrack discourage ethical behavior by their managing by the numbers?
The answers must:
– Include thought-provoking input and feedback designed to enhance communication
from/with other participants
– Have good quality writing
–
Evidence
of strong reflective thought pertaining to personal perspectives and
professional development.
– Cite Sources
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