You and your best friend Harold have started a jewelry business. He manages the business while you make the jewelry. Your designs are very successful, but because of Harold’s mismanagement, the business is not making any money. He suggests “doctoring” the financial statements and using them to raise capital from other investors. You are afraid that the business will not grow as long as Harold is running it, but he is a good friend and has some good ideas.

ETHICAL DECISION MAKING

1. What are the ethical issues?

2. What are the alternatives?

3. Who are the affected parties?

4. How do the alternatives affect the parties?

5. What would you do?