Our story opens with an irate Jim McIntosh: "I thought we had an understanding on this issue, Frank. Tina tells me that you are threatening to go public with your statements about the report. For Pete's sake, Frank, wake up and smell the coffee! You're about to damage all the important things in your life: your career, your friendships, and your company!"

What had Frank done?As manager of Corporate Reporting at Amalgamated Forest Products (AFP), Frank happened to pick up a copy of a report on the desk of Tina Pacquette, the manager of Financial Analysis. He was shocked at what he had read in the report.

He knew that the company president, Jean Letourneau, was scheduled to testify before a legislative subcommittee next week, giving the industry perspective on proposed legislation on emission controls for the pulp and paper industry. AFP was tasked to prepare the report on behalf of the industry.

The report, however, contains erroneous information, claiming that the company would be pushed into bankruptcy if the legislation was passed, but Frank knows that is not true. Given his financial knowledge of the business, he knows that the cost estimates in the report are highly inflated.

A long-time employee with a young family, Frank is proud of his work at AFP. He originally started in one of AFP's mills and then retrained after an accident, became a CPA, and was quickly promoted through the ranks to his current position.

He is now sitting in a meeting with Jim McIntosh, Vice-President at AFP and Jean Letourneau, discussing the matter. He feels so confused that they are not outraged by the errors in the report that he only hears snippets of their conversation to him:

"We have to use different figures for different purposes. In this case, we have to make those dunderheads in the government see what all this regulation is doing to us. Besides, they know we're going to use the most effective numbers to justify our position."

You've got to remember what's at stake here. Northlake's totally dependent on the mill for its economic survival. As the mill goes, so goes the town. It's your buddies you'd be threatening to put out of work, Frank. This legislation may not bankrupt us, but it will certainly put a squeeze on profits. If profits are gone, there will be no more reinvestment by head office and we will be done."

In the table below, identify at least three different actions available to Frank. For each action, identify the pros and cons. Next, conclude on what would you do if you were Frank. Your response should be no longer than two pages.

Actions Pros Cons

(1)

(2)

(3)

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