Ethical Dilemma at Northlake

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Ethical Dilemma at Northlake
The case begins with an intense discussion between the VP of Amalgamated Forest Products Jim McIntosh and Frank the manager of corporate reporting. Frank has disclosed to Jim that he plans to go public in regards to the truth in a report predicting that the companies operating cost would jump to 30 percent instead of Franks prediction of 8 to 10 just because the company would have to build a lagoon for wastewater treatment. Do to Jim’s opposite opinion of the need for disclosure Jim belittles and threatens Frank with his career. When the slander fails to yield results Jim decides to bring in the president of the company Jean. Jean attempts a different approach with Frank and takes the time to question Frank on exactly why he feels the report is not as it seems. Frank explains that Jean was going to go in front of legislation and testify to the findings in the report and the fabricated numbers would provide false acknowledgments. By falsifying the findings the legislation could possibly not force the building of the lagoon for the wastewater damaging the river to which the waste flows. This wastewater would carry higher dollar amounts in the long run when lawsuits are filed on the company by the people who would be affected by the wastewater downstream. Jim decides that the attempts by him nor the president will get through to Frank and he decides to change his tactic and asks Frank to think about the economic affects the mill would have on the people of the towns it calls home when the mill must be shut down do to not being able to sustain the economic operating cost they are predicting in the report. Jim admits that the investment into a wastewater lagoon may not break them but it would put a much tighter squeeze in profits, affecting the ability to buy new equipment and the ability to hire more of the towns’ people. Jean breaks in to smooth the relationship out and assures Frank that the company has high hopes for him aspiring...
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