Question

For the past year, you have been working as a secretary/ processor for a local construction company, XYZ Homes, which specializes in the building of low-cost, limited-option homes. You left a comfortable, good- paying job to work for XYZ because it was family- owned and operated by longtime friends.

Soon after you began working for XYZ, you noticed questionable behavior on the part of Mr. and Mrs. XYZ’s two sons, who are company salesmen. In fact, you are positive that they are falsifying documents to increase their commissions and to trick local banks into approving mortgages to customers who don’t meet credit standards.

You are trying to decide how to handle the situation when one of the sons approaches you and asks you to produce and sign a memo to a bank, falsely stating that a certain potential home buyer is credit worthy. You refuse to do so and, after much consideration, approach Mr. XYZ about the situation. To your surprise, he simply brushes off your comments as unimportant and laughingly states that “boys will be boys.”

What would you do in this situation? Is the fact that you correctly refused to produce and sign a false memo enough, or are you obligated to report these crimes to the banks and proper authorities? Discuss the options, responsibilities, and implications you are facing.

Answer 1

OPTIONS:-

there are two options available for us:

either to continue your job as usual even after knowing that the management relatives were indulged in false and unfair business practices.

or to report these fraud to the concerned authorities and made it publicily available all the necessary evidences.

RESPONSIBILITIES AND IMPICATIONS:-

as a responsible citizen i should report such fraudaulent practices to the outside regulatory authorities with all evidences . But doing so you know that it would hamper the image of the family and longtime friends. ethically it is the right choice to disclose the facts to the otside regulatory authorities.