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Credit Officer For Diversified Consolidated Corporation

1039 Words5 Pages

Abstract
A case is presented about insider information for a company attempting to prevent financial devastation to the extent of bankruptcy. The company has a good reputation with one firm whose credit officer learned of the financial risk. She has been asked to refrain from divulging this information to another potential creditor. The ethical dilemma for the credit officer is to report only the credit history as a reference based on transactions with the company or to share the projected actual risk. The following analysis will explore ethical issues from the rights perspective of the employee, the company, and stakeholders. Various alternatives will be evaluated. Consideration will be given for practical constraints for the employee and company. A recommendation will be made with steps the employee and company can take.

Keywords: insider trading, rights perspective, ethics, credit management

Good Credit Reference
Introduction with Relevant Facts A case analysis and recommendation has been prepared based on the case information provided (UoPeople, 2018): Kathy Ryan is a credit officer for Diversified Consolidated Corporation …show more content…

Kathy could lose her job if North files bankruptcy prior to paying DCC. Scott may lose his job at North if it files bankruptcy. North’s employees, vendors, and customers are stakeholders and will be at a loss if North files bankruptcy. Mike and Basic are stakeholders as Basic could be out a lot of money if they extend credit to North. Mike could lose his job if Basic issues credit to North. Employees, vendors, customers, and stockholders of each of the companies are stakeholders affected by financial loss of the company to which they are associated. Without consideration for the stakeholders, the decision Kathy makes will have impact greater than her own personal job security (McKinney, Emerson, & Neubert,

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