Seal best, Ine. (financial analysis) Roger Eliot, vice president and loan office

Question

Seal best, Ine. (financial analysis) Roger Eliot, vice president and loan officer of the First National Bank of Cincinnati, was recently alerted to the deteriorating fiancial position of one ot his clients, Seal-best, Inc., by his bank's newly instituted com- puter loan-analysis program. The bank requires quarterly financial slate- ments-balance sheets and income statements-from each of its major loan customers. This information is punched on cards and fed into the computer, which then calculates the key ratios for each customer, charts trends in these ratios, and compares the statistics of each company with the avetage ratios and treads of other firms ia the same indusiry. If any ratio of compuler output makes note of this fact. Il tbe terms of a loan require that certain ratios be maintained at specified mininum levels and these minimums are not being met by a company, the computer output notes the deficiency any compaay is signilicantly poorer than the industry average, the When an analysis was run on Seal-best tbree months earlier, Elliol noticed that some of the company's ratios were showing downward trentds, 13

Explanation / Answer

If I felt my group was making an unethical decision, I would quickly report it to the HR or the management whoever can help stop that decision. I would go as far as possible to stop that decision as I feel it is the right thing to do. Letting something unethical happen under your watch conflicts my personal values and the values of the company. My personal opinion of people who report wrong doing in an organization is positive. It takes guts to stand against a force and say what is happening is wrong and I am going to report it.

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