You are the Chief Finance Officer of a private company. Your chairman suggests you to over-report the profit. His idea is that over reporting profit would help convince one financial institution to extend loan to a new project that would provide employment to thousands of unemployed youths in a backward area. What are the ethical dilemmas do you face in this situation? What will you do? Please elaborate – INSIGHTSIAS

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Topic: Case study

6. You are the Chief Finance Officer of a private company. Your chairman suggests you to over-report the profit. His idea is that over reporting profit would help convince one financial institution to extend loan to a new project that would provide employment to thousands of unemployed youths in a backward area. What are the ethical dilemmas do you face in this situation? What will you do? Please elaborate (250 words)

Syllabus: Work Culture 

Why the question?

Increasing cases of bank fraud and corporate mismanagement in the society in recent times.

Structure of the answer

Introduction

Summarize the ethical and moral values involved in the case study in a brief manner

Body

  • Identify the stakeholder’s involved and ethical dilemmas in the case study
  • Highlight the options available for you- discussing their pros and cons
  • Provide a course of action chosen by you- justify your course of action by quoting any ethical philosophy to justify the action.
  • You can give any examples of actions taken by leaders in a similar situation to further justify your course of action.

Conclusion

Suggest ways through which corporate frauds as highlighted in the case study could be prevented in society. 

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