Ethical Dilemma at Northlake
“Ethical Dilemma at Northlake”
Week 3 – Case Study #1
Synopsis: Frank, manager of corporate reporting at Amalgamated Forest Products, has threatened to go public with information regarding a falsified report on the effect of effluent controls on the discharge of wastewater from pulp and paper companies, which has angered his boss, Jim McIntosh and the company’s president, Jim Letourneau. Letourneau was to testify before a legislative subcommittee the following week and use the report, “Endangered Species: The Pulp and Paper Industry in the Upper Peninsula”, to give the industry’s perspective on proposed legislation. The section of the report which contained the falsified financial information was prepared by Tina
…show more content…
Recommendation #2: Amalgamated Forest Products is one of five pulp and paper companies in the region and has taken the lead in developing the report which was to be presented by the company’s president, Jim Letourneau, to the legislative subcommittee the following week. The proposed legislation would diminish Amalgamated’s profits. Amalgamated was taken over last year and the head office in Chicago is putting a lot of pressure on the company to improve the bottom line. If there is a decline in profits, corporate would cut the new production line the company requested. Both Jim and Jean are under a lot of pressure to improve profits in order to get the equipment. It is recommended that Frank speak to Jim to let him know that it is unacceptable to speak to him in that manner. If that does not work, Frank should then go to the company’s human resource department and discuss it there. As for Mr. Letourneau, being that he is the president of the company, it may not be possible to resolve the issue. Frank may need to resign his position with the company. Mr. Letourneau has already alluded to the fact that Frank may lose his job if he doesn’t back down.
Finding of Fact #3: Frank’s motivation and desire to succeed has been supported by Amalgamated. During his 10 years of employment, Frank has gone from working in the yard to becoming the manager of corporate reporting. Through his employment, Frank is