Community Charities has a standing agreement with Empire State Bank. The agreement allows Community Charities to overdraw its cash balance at the bank when donations are running low. In the past, Community Charities managed funds wisely and rarely used this privilege. Recently, however, Douglas Byrd has been named president of Community Charities. To expand operations, Byrd is acquiring equipment and spending a lot for fund-raising. During Byrd's presidency, Community Charities has maintained a negative bank balance of about $3,000.
Required
What is the ethical issue in this situation? Do you approve or disapprove of Byrd's management of Community Charities' and Empire State Bank's funds? Why? (Challenge)