Clean Power's Corporate Social Responsibility

There is a critical need to ensure the company and its stakeholders are protected from any type of error in a financial investment causing a loss in profits. First identification is required to know who these stakeholders are and what affects poor judgment has on each. Joe, Mary, John the anonymous author of the letter to the CEO (John), the stakeholders, Joe’s family and Mary’s family all play a part in the case. Joe holds his business integrity very high and is taken by surprise when Mary stated, there are serious doubts about his promotion as District Manager if he does not report specifically what Mary wants to the CEO although it is not true. He could lose his job and financially his family would suffer. Mary could lose her job if Joe reports the direction to the CEO or if the CEO later found out she was knowledgeable about the lack of performance of the new system. Mary would also be placing her family in a financial situation with loss of wages. John has the highest visibility as president and CEO of the company. If he is not told the truth about the system he is unable to project present and future losses due to the system’s poor performance. The bottom line profits are inflated when there is a loss and he is held responsible. Stockholders will see the loss in profits in their investments. The anonymous author could be revealed to his/her boss and face retaliation.

There are two laws that apply to this case. Sarbanes-Oxley Act is the first law because it identifies if there is a specific action taking place regarding excessive and unnecessary expenditures this act has been violated. Mary supported the “very expensive investment” of a new system that is not performing to management’s expectations. Mary does not want to give the CEO a negative report because it could mean her job. The CEO is dependent on all information since he is ultimately responsible to sign the quarterly reports. Mary is not concerned with an ethical decision rather...