ETHICAL DILEMMA

Anything For (a) Buc?

Ethical dilemma:

Mr. Charles, the CEO of the Bank of Universal City (BUC), is concerned that the companys growth this year will be below what is needed to achieve growth projections during the next five years. Mr. Charles believes that Univest, the investment management division of BUC, can increase its sales so that the entire organization can meet the projected growth for the year and keep the firm on track to meet its future growth expectations. To help, Mr. Charles has given the VP of Univest, who is your boss, some leads to contact for possible new accounts. One of the most promising leads is a religious organization with a shady reputationRighteous Freedom Choice (RFC). It has been rumored that RFC is involved, either directly or indirectly, in unsavory activities, including sponsoring terrorism in other parts of the world, and the funds it receives come from organizations involved in similar illicit activities. Although the rumors are just thatrumorsthere are indications that they might be true. A colleague of yours provided you with much of this information, which was relayed to her by a couple of prominent businesspersons. The validity of the information is questionable, however, because the persons who provided the information are not on friendly terms with the head of RFC, Mr. Radcliff. Should BUC pursue RFC as a potential customer? It appears that RFC will be moving its funds to a new investment management firms soon. Even if the rumors prove to be correct, is there a problem with BUC managing RFCs money?

Discussion questions:

What is the ethical dilemma?

Should BUC try to attract RFCs business?

What decision should BUC make?