Troubled Waters: An Outsourced Ethical Dilemma. In this story, WPC, a company, is thinking about hiring outside help for some of its computer work to save money. They got advice from a consulting company called Granderson, saying it could save them $6.6 million in the first year, but they would have to let go of 110 of their own IT workers. Richard, who's a manager there, worries that this plan might not really save money because he thinks the outside workers might not work as well. But the company's CFO, Ken, really wants to become the CEO, so he's pushing for this plan to impress the company's board.

The big problem here is whether they should go with Ken's plan to save money and help him become CEO, or if they should think about the 110 workers who might lose their jobs and whether it's right to tell the board that this plan will save a lot of money when it might not.

The rules of honesty and fairness are being stretched in this situation. Ken might not be telling the whole truth to help his career, and that's not really honest.

To figure out what to do, they have a few choices:

• They could just go ahead with Ken's plan and hope it saves money and helps him become CEO.
• They could take a closer look at the plan and see if it really will save money or if it's too risky.
• They could decide not to do the plan at all and keep the IT workers' jobs safe.

To decide, they need to gather information:

• They should find out how well other companies did when they hired outside workers.
• They should ask their own IT workers how they feel about the plan.
• They should think about how it might hurt the company's reputation if things go wrong.
• They should calculate how much money they'll really save and how much it will cost to let go of the IT workers.
• And they should think about what might happen if they tell the board something that isn't completely true.

Each option has its own good and bad points, and they'll need to think carefully about all of them to make the right choice.

• Is the option presented the best to resolve the ethical dilemma? Why? Provide rationale that supports data findings for the stakeholders in the case study.
• Are there any additional options to solve the ethical dilemma that weren't identified in the initial post?
• What other relevant quantitative and qualitative costs and benefits should be taken into consideration?

Discussion 2 Corporate Policy

Corporate Policy toward Vendor Payments: Ethical Considerations and Unintended Consequences.

As a CFO of CiM Corporation, John Taylor recently made changes to the company policy delaying vendor payment and putting stress on financial staff causing two employees to quit and Karla Hester to possible consider leaving as well, although she enjoys her job and see believe she has a future within that company. After hearing the how vendors are having cashflow problems and how desperately there are in need to received paying for outstanding invoices from CiM , Karla continues to follow her robotic responds apologizing for the delay.

The ethical dilemma in this case is the CFO John Taylor made this significant change towards payments to vendors. CiM's new policy goes against the IMA ethical principles, and I believe this should be resolved, his intentional decision is dishonest and does not uphold the initial agreement with this vendor as previously agreed. Under the old policy, CiM paid its vendors within 45 days (about 1 and a half months) unless a discount could be negotiated for earlier payment. Most vendor invoices contained a 30-day due date. Although the 45-day payment was an irritant, vendors put up with it due to the size of the CiM account and were sometimes motivated to offer a discount for a faster payment. Under this policy, the turnover payables averaged just under 36 days (about 1 month 5 and a half days). John has decided to implement this chance to his newpolicy, intrigued by the fact that deferring vendor payments could improve liquidity by shortening a company's overall cash conversion cycle (CCC), even though the buildup in payables resulted in a lower current and quick ratio. Instructed his financial officers to mislead vendors is unethical and should be resolved.

A suitable option is to be honest with the financial staff membersand stakeholders. develop a new net term agreement that works for everyone. This can include a possible late charge if failure to meet payment terms. Reach out to your vendors and build their trust again. Once this is established, we can presentthe financial results to the board at the next meeting. Ths will allow board members to voice their opinions and financial staff members to review revised policy and understand when invoices can be paid. Another option is to return to the original agreement and process payment as agreed upon initially.

When reviewing the CiM corporate policy for vendor payment options it is important to calculate both the quantitative and qualitative costs. This includes analyzing their financial implications, the consequences of costs and pricing versus ethics.

Qualitative cost can be a reputation risk for your company. This can have an impact on your company's name and reputation. There is a tremendous risk and legal action causing your company to have a negative reputation if vendor payment is perceived as unethical. Any compliance risks such as corruption or fraud can corrupt business and cause you to lose vendors. Renegotiating payment terms with your vendor will allow both parties to discuss a better way to do business and it's a win-win situation. Proposing a different term such as 60day (about 2 months). This isimportant for ethical vendor payment practices to maintain the company's integrity and foster a positive corporate culture. Enhancing supplier diversity is good for the long term of your company and helps to priority vendor payment on time.

:

• Is the option presented the best to resolve the ethical dilemma? Why? Provide rationale that supports data findings for the stakeholders in the case study.
• Are there any additional options to solve the ethical dilemma that weren't identified in the initial post?
• What other relevant quantitative and qualitative costs and benefits should be taken into consideration?