Reference no: EM132965346

Question - Rita Pelzer was just hired as Assistant Controller of a Hotel, the company is a special chain hotels with nine hotels concentrated in one metropolitan area. Among other thigs the payment of invoices is centralized. Her primary responsibility is to maintain the hotels high credit rating by paying all bills when due and to take advantage of all cash discounts.

Jamie Caterino, the former Assistant Controller who has been promoted to Controller, is training Rita in her new duties. He instructs her that she is to continue the practice of preparing all checks "net of discount" and dating the checks the last day of the discount period. But-James continues- we always hold the checks at least four days beyond the discount period before mailing them out. That way we get another four days of interest on our money. Most of the creditors need our business and don't complain. And if they scream about our missing the discount period, we blame it in the mail room or the post office. We've only lost one discount out of every hundred we take that way. I think everybody does it. By the way, welcome to our team!

Answer following Questions:

1. What are the ethical considerations in this case?

2. Who are the stakeholders that are harmed or benefited in this situation?

3. Should Rita continue the practice started by Jamie? Does she have a choice?