Gallant's actions are ethical. This statement can be argued upon because of the below-mentioned reasons.
As the president of a corporation, M.K Gallant will, of course, make any strategic plan available for his company in order to attract investors, customers, and even competitors.
In my opinion, his choices and decisions are ethical enough as to maintain the company's profitability.
Cost-cutting measures, such as deferring and canceling expenditures and orders, delaying maintenance and training, and reducing travel and advertising expenses, are rational if your company's sales are declining and it is expected that it will not meet its revenue targets for the year.
However, this is risky because
- advertisements are extremely important in a company's marketing,
- delaying orders from suppliers can cause problems within the company and its vendors because these are pre-ordered.
- Maintenance and training are important aspects for a company because they can lead to bigger problems in the future.
Finally, cost reclassification is debatable.
Because stocks are traded in this case, we can expect an audit.
The auditors will examine the reclassifications to see if they implement accounting principles (GAAP). M.K Gallant and his controller must have legitimate reasons for reclassifying the company's costs.
Hence, Gallant's actions are ethical if he has valid reasons for doing so.
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