What is the Board of Directors, and what is its responsibility?

Business Ethics

Your company produces an assortment of school supplies, and has a policy of supporting child health. One day you happen to notice information that (although it is not your area of expertise) in your opinion, indicates that the product produced by your company may be harmful to pre-teens. Furthermore, being the CFO, you have firsthand knowledge that the costs presented by the production department are understated by 18%.  You recall that the last “trouble-maker” received a call from the Chairman of the Board, and had a hasty departure from the company.

In Short Essay Form, answer the following questions:

1) What is the Board of Directors, and what is its responsibility? 

2) Who is responsible for the financial affairs of the company? 

3) Should you act on information that in your opinion” ‘indicates'” something may be wrong? Why, or why not? 

4) What item(s) are you required to address, and why? 

5) What other issue(s) may be present here? 

450 words