Question

Read the Ethical Dilemma: Who has the Money – The Democrat or The Republican?

What should Sheli do?

What would you do if you were in Sheli’s position?

Answer 1

On analyzing the ethical dilemma Sheli is facing, it is important to distinguish sheer financial issues and ethical issues. From the financial perspective, the 10 million loan is likely to drive Sunflower to bankruptcy but, from the ethical perspective, Sheli is a newcomer in the organization and she cannot confront openly her boss. In this regard, the interests of the organization should be prior to Sheli but not personal consideration of her boss, Henry.

In actuality, the financial position of Sunflower is poor and the company is likely to be unable to afford the 10 million loan. In fact, the decision on the loan is difficult to take but Sheli should act reasonably. Her decision should be reason-driven. Hence, she should take into consideration that the 10 million loan may have disastrous effects for the organization.

In such a situation, the customer loyalty is important but the bank interests are more important. At any rate the loss of 10 million loan will affect the bank considerably and the bank may not provide the loan for Sunflower. Therefore, the decision on the loan should be taken objectively on the ground of the financial position of the company and bank’s policies.

The deterioration of the performance of Sunflower may continue in the future to the extent that the company may run bankrupt. Therefore, Sheli should refuse from the 10 million to Sunflower. This decision is likely to approach Sunflower to bankruptcy that is apparently will ruin the company and undermine the position of the Democrat. Therefore, the 10 million loan would be a disaster for the company because it would make the company’s obligations unaffordable and the bankruptcy would be not a hypothetical threat but the real threat in a short-run perspective.

Moreover, the company should not take the 10 million loan until it identified causes of its current financial problems and eliminated them. The position of the company is difficult and, if its problems remain unresolved, the 10 million loan will of little, if any, help for the company. Therefore, again it is obvious that Sheli should recommend refusing from the loan.