Question 6: Henry is the wealthy CEO of the leading Australian bank, Cashkings Pty Ltd. He reserves the final say on all business initiatives and has a ruthless policy regarding expenditure and generating profits. "I'm not your boss, the shareholders are, now go and make them money" is one of his famous catchphrases. He has a keen eye for a good corporate opportunity, and produces profits of tens of millions of dollars each year. One day he is approached by an executive from his analysis division regarding an alarming increase in default rates on loans provided to first home buyers. "Sir, the rates we offer as part of our honeymoon package seem to entice a great deal of the market to borrow from us, however it appears that half the borrowers are losing their homes because they can't afford to pay their loans". Henry, agitated that he has been interrupted with this bad news, puts his arm around the executive's shoulder and says, "So what? We give them the opportunity to read the fine print. We're a bank, not a charity. What do they want me to do, go down there and pay off their loan for them? The product is to stay as is and I don't want to hear another word about it. I want to recover every single cent from these borrowers!" Cashkings has been approached by the banking board and asked to sign the Code of Banking Practice. Henry responds with "Why on earth would I sign something that isn't legally binding? Get out of my office and don't come back!" After advice from his executives warning Henry against pursuing his hardline business model, he comes into your office, demanding to know the importance of what he describes as "business ethics". He is an impatient man and does not care about the feelings of his customers. He is only interested in knowing whether this will affect his bottom-line profit margins. Advise Henry