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The ethical issue is that the financial vice president fraudulently agreed to pay $6,000,000 rather than the market price of $5,0000,000.
What are the ethical issues?
From the information given, the financial vice president fraudulently agreed to pay $6 million instead of the market price of $5 million for the timber.
This is unethical due to the fact that the financial manager may collude with the seller to rip off the company the extra $1 million.
b. Is any particular stakeholder harmed by the financial vice president's decision
The vice president’s financial decision affects the shareholders of the company.
This is because the vice president is reducing the profitability of the company and low profitability means low retained earnings.
The shareholders will be affected in terms of the reduced dividends earned due to the reduced retained earnings.
c) What the controller should do
The controller should then use professional due diligence and integrity on order to ensure transparency in the dealings.
He should therefore ensure that the company does not pay the $6 million that the financial president agreed to pay.
Learn more about ethics on:
https://brainly.com/question/13969108
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