A Business Case

Presented to the
Accountancy Department
De La Salle University

In Partial Fulfilment
Of the Course Requirements
In ACTBAS2 K34

SUBMITED BY: VIRGIL NICOLO G. TABLIZO

SUBMITED TO: DR. CARMELITA CLERIGO
DATE SUBMITED: JULY 9, 2012

Antonia Belle was just hired as the assistant treasurer of Exclusive Store, which is a specialty
chain with nine retail stores concentrated in one metropolitan area. Among other things, the
payment of all invoices is centralized in one of the departments Antonia will manage. Her
primary responsibility is to maintain the business high credit rating by paying all bills when due
and to take advantage of all cash discounts.

Chris Kelly, the former assistant treasurer who has been promoted to treasurer, is
training Antonia in her new duties. He instructs Antonia that she is to continue the practice of
preparing all cheques net of discount and dating the cheques the last day of the discount
period. But, Chris continues, we always hold the cheques at least 4 days beyond the discount
period before mailing them. That way we get another 4 days of interest on our money. Most
of our creditors need our business and dont complain. And, if they scream about our missing
the discount period, we blame it on the mail room or the post office. Weve only lost one
discount out of every hundred we take that way. I think everybody does it. By the way,
welcome to our team!

a.

What are the ethical considerations in this case?

-What the company is doing is basically unethical since they are aware of the said
term deadline but intentionally delay so that they may be unjustly be enriched. Also
they blame it on the mail room or the post office, which are unpredictable variables
since both parties concerned have no control over it.

b.

Who are the stakeholders that are harmed or benefitted in this situation?
-The stakeholders that are potentially harmed in this situation is the company itself,
though they lose only one out of hundreds, its still a counted lose because of their
actions. There will also be delay to the creditor since the company delays the
submission of payment to them and those delays can pile up and be a potential
threat to the creditors business.

c.

Would Antonia continue the practice started by Chris? Does she have any choice?
-She has a choice whether to continue and practice while observing the correct
ethical and moral doings in executing operations, or she can continue and do what it
is that the company has done previously. It will be entirely up to her if she should
follow by ethical means.