Ethical Issue 2-1 Better Days Ahead, a charitable organization, has a standing a

Question

Ethical Issue 2-1 Better Days Ahead, a charitable organization, has a standing agreement with First National Bank. The agreement allows Better Days Ahead to overdraw its cash balance at the bank when donations are running low. In the past, Better Days Ahead managed funds wisely and rarely used this privilege. Jacob Henson has recently become the president of Better Days Ahead. To expand operations, enson acquired office equipment and spent large amounts on fundraising. During Henson's presidency, Better Days Ahead has maintained a negative bank balance of approximately $10,000. What is the ethical issue in this situation, if any? State why you approve or disapprove of Henson's management of Better Days Ahead's funds.

Explanation / Answer

In the given situation, Jacob Henson who is newly formed manager of Better Days Ahead taking advantage of his privileges by overdrawing cash balance from the bank when donations are running low. This is the ethical issue of his irresponsive management.

I totally disapprove of Henson's managment as he carelessly withdrwan a large amount of money to acquire office equipment for the purpose of expanding the operations which lead to a negative bank balance of $10,000. But the fund should be withdrawn when the donations are running low and utilize to meet uncertain financial urgencies.

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