Spoonful

Making Ethical Decisions

with Louisa Natarelli

Scenario

The Ethical Dilemma of Loan Approval

You are reviewing a loan application for a customer who dreams of owning a home. However, you notice that their income has been slightly exaggerated. If you approve the loan, they may struggle with repayments, but denying it could mean they lose their chance at homeownership. Your manager is pressuring you to approve the loan to meet sales targets, and the customer is relying on you to make it happen.

What should you doWhat should you do

Approve the loan anywayVerify the income detailsIgnore the issue and pass it along

How can you ensure fairness?How can you ensure fairness?

Follow the same approval criteria for all applicantsApprove the loan because the customer is in needDeny the loan outright without explanation

What is the honourable action to take?What is the honourable action to take?

Disclose the income discrepancy to the customer and explain their optionsFollow your manager’s directive and approve the loanAvoid discussing the issue unless the customer brings it up

What should you do if your manager pressures you to approve the loan despite the risks?What should you do if your manager pressures you to approve the loan despite the risks?

Stand your ground and refuse to approve the loan dishonestlyApprove the loan under pressureStay quiet and do nothing