case study 1
Kevin Mack
MGMT 362
Week 3
Case Study #1
Ethical dilemma at Northlake
Synopsis Overview: Frank, the manager of corporate reporting at Amalgamated Forest Products recently came across a report to which he was not intended to see regarding the possible effects to their business from potential government environmental regulations. Now he has threatened to go public with information regarding a falsified report to the effect of “effluent controls” on the discharge of wastewater from pulp and paper companies, which has infuriated his superiors, Jim McIntosh and the company’s president Jim Letourneau. Mr. Letourneau is scheduled to testify before a legislative subcommittee and use the report titled, “Endangered Species: The Pulp and Paper Industry in the Upper Peninsula”, to give the corporate perspective regarding potential outcomes of the proposed legislation.
The report in question which contained falsified financial information was prepared by Tina Pacquette, manager of financial analysis. While Frank and Tina’s work relationship has been sketchy at best, Frank has quite little confidence in Tina’s ability to perform her job. The report details how Amalgamated would suffer severely financially if forced to construct a lagoon to treat wastewater as the impending legislation would require. Frank knows the numbers used support this report were grossly exaggerated with percentages that were nearly triple the percentages reported in a similar report by Tina just one year ago.
Northlake, a rural town with a population of roughly 10,000, is the home of Amalgamated’s corporate offices. Three of the company’s main mills were located in other more isolated areas of the province. The company has been experiencing financial difficulties because of the recent recession. The waste Amalgamated is dumping in the Wanawashee River is the same waste the competition had to clean up a few years ago and its remnants are still affecting the water supply of the aboriginal
MGMT 362
Week 3
Case Study #1
Ethical dilemma at Northlake
Synopsis Overview: Frank, the manager of corporate reporting at Amalgamated Forest Products recently came across a report to which he was not intended to see regarding the possible effects to their business from potential government environmental regulations. Now he has threatened to go public with information regarding a falsified report to the effect of “effluent controls” on the discharge of wastewater from pulp and paper companies, which has infuriated his superiors, Jim McIntosh and the company’s president Jim Letourneau. Mr. Letourneau is scheduled to testify before a legislative subcommittee and use the report titled, “Endangered Species: The Pulp and Paper Industry in the Upper Peninsula”, to give the corporate perspective regarding potential outcomes of the proposed legislation.
The report in question which contained falsified financial information was prepared by Tina Pacquette, manager of financial analysis. While Frank and Tina’s work relationship has been sketchy at best, Frank has quite little confidence in Tina’s ability to perform her job. The report details how Amalgamated would suffer severely financially if forced to construct a lagoon to treat wastewater as the impending legislation would require. Frank knows the numbers used support this report were grossly exaggerated with percentages that were nearly triple the percentages reported in a similar report by Tina just one year ago.
Northlake, a rural town with a population of roughly 10,000, is the home of Amalgamated’s corporate offices. Three of the company’s main mills were located in other more isolated areas of the province. The company has been experiencing financial difficulties because of the recent recession. The waste Amalgamated is dumping in the Wanawashee River is the same waste the competition had to clean up a few years ago and its remnants are still affecting the water supply of the aboriginal