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Ethical Dilemma at Northlake.

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Throughout the last 10 years Frank has worked his way up the corporate ladder of Amalgamated Forest Products where he now holds the title of manager of corporate reporting. With help from his manager and mentor Jim McIntosh, the vice president of finance, he earned his Certified Management Accounts (CMA) certificate and has enjoyed a comfortable life with his wife and three children. His head is now positioned on the chopping block and he could suffer major losses if he does not conform to the company’s expectations of him.

He is resisting pressure from top management to allow a vital document to be submitted to a legislative committee regarding the company’s business procedures and financials. He feels the financials are highly inflated and will cause serious problems for the company in the future. Frank feels the report is shrouded in unethical conduct. “Endangered Species; The Pulp and Paper Industry in the Upper Peninsula” is a report prepared by Amalgamated Forest Products’ Tina Pacquette, in response to new government legislation requiring pulp and paper mills to change the way they dispose of waste materials. The government is proposing a more environmentally safe way to dispose of the waste materials by forcing the industry to implement emission controls.

Jean Letourneau, the 60 year old company president of Amalgamated is the appointed

industry spokesperson and will appear before the legislative committee. Under oath, he

Week 3 Case Study #1 – Ethical Dilemma at Northlake

will testify to the report’s legitimacy. Jean agrees with the report and feels having to build a lagoon for wastewater treatment will be to the detriment of his company and the industry will suffer even further in this already declining market. He feels the situation should not be regulated by the government. Instead it should be handled within the confines of…...

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