5. From an ethical standpoint, what does your group conclude is the most appropriate action that should be taken by the company In this situation? The Situation The top management team of a medium-sized manufacturing company is on a strategic planning "retreat" where it is formulating Ideas and plans for spurring new growth in the company. As one part of this activity, the team, wor1

The Dilemma One member of the team, James Smith, has posed an interesting optio~t complying. His logic can be summarized as follows:

1. The firm has already developed its capital budgets for the next two years. Any additional capital expenditures will cause major problems with the company's cash flow and budget allocations.

2. The company has a large uncommitted capital budget entry available in three years; those funds could be used to upgrade pollution control systems at that time.