Assignment task:
Respond to this analysis in a minimum of one hundred words.
The Paycheck Protection Program (PPP) helped businesses during the Covid-19 pandemic. This case raises the issue of necessity in the PPP loan. The business we are addressing in the case, Trego Bikes and Trikes, applied for and received the PPP loan, but didn't necessarily need it. Although they didn't know it at the time, the Covid-19 pandemic boosted their business to new heights because more people were outside riding bikes. Then the real ethical issue becomes, should they apply for the PPP loan forgiveness? This is exactly where we find the CFO of Trego Bikes and Trikes, Meredith. She is being pressured by the CEO to apply for forgiveness, but Meredith knows they don't really need it.
Knowing that the PPP loan forgiveness is not necessary, and still going through with it could be the beginning of a slippery slope. Meredith could be perceived differently by her fellow employees, specifically the accounting department. Any other employees looking to her for guidance may interpret this action/decision as a green light to always to the easy thing, instead of the right thing. In a position of power such as the CFO, Meredith needs to realize and respect the fact that she holds influence on all personnel below her. Not only could this be a slippery slope for the company's overall environment, but it will also affect the shareholders.
The decision will lie solely with Meredith's moral development and virtue. The Ethics Code of Conduct would guide her to act with integrity and honesty. In doing so she would keep the tone at the top exactly where it needs to be. The CEO is only seeing "free money". Because Trego Bikes and Trikes did indeed use the PPP funds for the correct expenses (payroll, utilities, etc.), the CEO may not see a problem with applying for loan forgiveness. He may only be seeing the numbers. Again, here is where Meredith needs to stand her ground. They never actually needed the money, and therefore, they should pay it back.