Steve is deep in debt due to a gambling problem. He is the bookkeeper for a family-owned business, Cal Poly Greenery. The compan
y has only three employees - Steve, the husband, and the wife. All three have been friends for many years. One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the loan. Steve convinces the loan shark to give him another day. The following day Steve writes a check on the company's books to himself for $20,000. Since he reconciles the bank accounts and prepares the financial statements, Steve knows it's unlikely the owners will ever know about what he has done. From an ethical perspective, Steve has:
The answer is: Steve has not only compromised his professional integrity, he has also violated the trust the owners placed on him during so many years. His reputation will be shattered if the owners find out about his dirty activities.
Explanation:
What Steve just did is not only unethical buy also illegal. Of course he violated the trust placed in him by the owners. They thought they were friends and no one would expect his friend to betray them like this. He doesn't only risk his reputation if the owners find out, he risks going to jail. With his actions Steve has shown us he doesn´t have any moral integrity.
Assume that currently there is no trade between them. Each country has 100 units of labor. Latvia produces fish, at a cost of 1 unit of labor per fish, and grain.
