Danny feeney, the former assistant treasurer

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You have just been hired as assistant treasurer of Dorchester Stores. One of your primary responsibilities is to maintain the company's high credit rating by paying all bills when due and to take advantage of all cash discounts.

Danny Feeney, the former assistant treasurer who has been promoted to treasurer, is training you in your new duties. He instructs you that you are to continue the practice of preparing all checks "net of discount" and dating the checks the last day of the discount period. "But," Danny continues, "We always hold the checks at least 4 days beyond the discount period before mailing them. That way we get another 4 days of interest on our money. Most of our creditors need our business and don't complain. And, if they scream about our missing the discount period, we blame it on the mail room or the post office. We've only lost one discount out of every hundred we take that way. I think everybody does it."

a) What are the ethical considerations in this case?

b) Who are the people that are harmed or benefited?

c) Should you continue the practice started by Danny? Do you have any choice?

Reference no: EM13949703

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