Reference no: EM132567757

This was Joel Craig's first visit to the controller's corner office since being recruited for the senior accountant position in May. Because he'd been directed to bring with him his preliminary report on year-end adjustments, Craig presumed he'd done something wrong in preparing the report. That he had not was Craig's first surprise. His second surprise was his boss's request to reconsider one of the estimated expenses.

S&G Fasteners was a new company, specializing in plastic industrial fasteners. All products carry a generous long-term warranty against manufacturer's defects. "Don't you think 4% of sales is a little high for our warranty expense estimate?" his boss wondered. "After all, we're new at this. We have little experience with product instructions. I just got off the phone with Blanchard (the company president). He thinks we'll have trouble renewing our credit line with the profits we're projecting. The pressure's on."

In a well-thought out main post, describe the ethical dilemma posed in this situation,

Question a) who the stakeholders are? and

Question b) what you would do if you were Craig?