Kranbrack Corporation DQ
Read the bellow discussion topic. Your job is to respond to the discussion topic (3 SOLID PARAGRAPHS WITH REFERENCES) and respond to comments 1 & 2- different perspectives from other people (2 PARAGRAPHS FOR EACH COMMENT WITH REFERENCES, IF USED).
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.
- Are the actions ethical? Explain why or why not.
From my opinion, the actions are unethical. What Gallant is trying to do is save the business from exodus by stakeholders. Normally, everyone wants to be associated with a profitable entity. Stakeholders have put their money in the business, since it is a publicly traded business and they expect to get revenues for their investment. However, form the look of things, the business is heading for a major loss and the executives are not ready to take that risk. His decision to change the dates on the document of receiving stock do not comply with…