Business Memo

MEMORANDUM

TO: Charles Croft
FROM: Xiaolu Jiang
DATE: Oct 21, 2017
SUBJECT: Concerns of The New Proposal
This memo is written to raise awareness of the potential risks associated with the new proposal you presented to our clients and explore proper solutions.
The new recommendation you proposed to our Fortune 500 client showed excellent business acumen, however there is serious mathematical error within your research as we discussed last time.
I am fully aware that you’ve put a lot of effort in the proposal. But considering the future reputation of Wentworth Economics and our ethical responsibilities to our clients, I have to strongly recommend that you report the research errors and potential risks to our client, in order to help them make a right business decision and avoid potential loss. I’ve stated three major reasons in the following:
First, it is our ethical responsibility

We could potentially lose this major client and the many future opportunities to work with other similar clients. And it would be too late to address it once the client took our recommendation and already invested in it.
Third, from the Ethical Guidelines (2016, p. 4), “The ethical statistician strives to explain any expected adverse consequences of failure to follow through on an analytic plan.” We’re obligated to make our client aware of the potential risks and consequences of the proposed recommendation. The clients normally make major business decisions based on our suggestions. That’s why they have the right to be aware of the limitation of our research. We are responsible for our clients and their benefits.
Thank you so much for your time. I really hope you would reconsider about the proposal. It would be great if we can set up a meeting to discuss more at your earliest