Synopsis:
The story opens with Jim McIntoch who is the Vice President of Finance at Amalgamated Forest Products. He is engaged in a heated conversation with Frank who is the manager of Corporate Reporting. Jim is upset because he has been told that Frank is intending to go public regarding a financial analysis report that the company is presenting to legislation and how it has been falsified.
Frank is threatening to announce findings about a report entitled: “Endangered Species: The Pulp and Paper Industry in the Upper Peninsula,” The report described what the Amalgamated Forest planned to do about the government proposal to put sewage controls on the discharge of waste water from the pulp and paper mills in an ecologically delicate region, Northlake, a town of roughly 10,000 people. Within the report there was a particular section that contained financial estimates on how much would be spent in operating cost if the company was to establish pollution control of the wastewater discharge.
This section of the report was prepared by Tina Pacquette, the company’s manager of financial analysis. She had reported that the company would suffer a great financial loss if they were to build a lagoon as legislation would require for treating the wastewater. Frank realized that the numbers Tina was reporting were greatly exaggerated and almost tripled what she had reported a year ago. The report stated that if the legislation was to pass then the operating cost that Amalgamated Forest would incur would raise by thirty percent, however, Frank knew realistically it would only increase about eight to ten percent.
Jim grows angry with Frank and leaves to go and get the president of the company Mr. Jean Letourneau. While Frank is waiting in Jim’s office he thinks of the ten years he has been employed by Amalgamated Forest. He reflects on how he began in the yard and was promoted to accounting after injuring his leg on the job. They sent him to college to further his education and gain his Certified Management Accountants (CMA) designation. After Frank completed college he returned to the company. He quickly grew in the corporation and was promoted to manager of corporate reporting.
Jim and the president return and again Frank voiced his concerns regarding the report and it being submitted as written. He addressed the fact that report made it sound as if the company would go bankrupt if the legislation was passed. He expressed how that was not the true facts and how the figures Tina submitted were exaggerated to be higher than they actually were. Jean’s reply was that the company tailored figures based on the specific need at the time.
Frank also addressed that report failed to report the damage the company was doing the Wanawashee River. He pointed out that what was being dumped into the river had to be cleaned up two years ago by their competition and the people of their town was drinking it. He expressed his concern for the president and explained that if it was discovered he had lied in this report he could go to jail and Frank himself could lose his designation.
Jim McIntosh told Frank that he needed to think of the bigger picture. He reminded Frank how Northlake depended on the job’s the company brought to the community. He point blank let Frank know that if he went public with his report then his own personal friends would suffer. He then voiced if legislation passed then the company’s profits would suffer and the company could be closed by headquarters.
Mr. Letourneau spoke of how he had plans of promoting Frank to V.P. Controller. Jean made it clear that he would hate to see Frank have be let go from the company over something that was so small and not his responsibility. He then spoke of everything the company had invested in Frank and how Frank should be thankful for all Amalgamated Forest had been able to provide him. Mr. Letourneau told Frank that pollution had always been a problem and always would be. He encouraged Frank to just forget the whole matter regarding the report that was going to be submitted.
Finding of Fact #1: Issues dealing with the interpersonal relations between Frank and his coworkers. In particular, Frank’s relationship with Tina Pacquette defined as not very cordial.
Recommendation #1: Workplace relationships play a huge part on an organization in whole. When poor relationships exist in the workplace it can become a significant source of stress and cause feelings of disrespect between employees. The values and behaviors of employees are imperative to a company. Every person possesses some degree of a moral compass which is shown in how they treat others and even behave themselves. If a person, such Tina, lack strong ethical values then they may participate in behaviors that could negatively impact the organization. Issues had obviously been part of Frank’s and Tina’s work relationship because Frank felt Tina work was less than adequate.
Although, this company is engaged in unethical behaviors all the way up to the president there are things that can be put into play inside a company to help strengthen ethical behavior in a company. Utilizing things such as training programs, codes of conduct, and ethics committees can advise personnel of the kinds of behavior that is found acceptable inside a company. These type of programs will not change a person’s individuals own personal values but it will make clear what will and will not be accepted in the company.
Finding of Fact #2: Upper management is concerned with what it at stake in regards to the legislation passing. They voice potential negative impacts on the community of Northlake and Amalgamated Forest Products.
Recommendation #2: I would recommend that the company not submit the falsified report. If they present this exaggerated and false report to the government they are committing fraud. Mr. Leourneau would probably face jail time for presenting a document he knows is false. The company would then not need to worry about decreased profitability because the company would not just be downsized but very likely indeed closed not by headquarters but the government. Instead the company could try working with the government. There could possibly be options of tax credits or subsides that would be available to help the company become compliant with the required sewage controls for the discharge this company is imposing on the environment. With possible tax breaks and subsidies they could enter into an agreement to pay back the government over time. Their company would remain in a good legal standing and employment would remain intact and losing profit would not be an issue.
Finding of Fact #3: It is obvious that the pollution Aborigine Forest Products is putting off needs to be addressed. Frank has explained how pollution is slowly ruining the environment and community. For example, sewage is draining into Wanawashee River and polluting the drinking water for the community.
Recommendation#3: Because of the many toxic chemicals that are used in paper making, particularly toxic cleaners and chlorine compounds that are used to bleach pulp, I recommend that the new legislation be put into place immediately. This would put into effect the needed controls on the discharge accumulated toxic chemicals created by the company. This would help in further protecting the environment and help creating a better sustainable, environmentally safe production for Amalgamated Forest Products.