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Daniel Kim Harvard Business Case

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Introduction
Daniel Kim, the CFO and co-founder of a fast-growing startup Cardio-Metric, has been contemplating exposing the transgressions of his colleague and friend, Carlos Sanchez. Kim recently uncovered excessive expense accounts on behalf Sanchez, CEO and co-founder of the company. For years, Kim has been struggling to handle Sanchez’s rash behavior, which ranged from firing several well-respected executives to delivering optimistic sales forecasts, professionally. However, when it was discovered that Sanchez and Mary Jones, his assistant, have been charging large purchases that had nothing to do with the company, Kim repeatedly asked them to justify their purchases and repay the company for any personal expenses.

Due to an audit scheduled to begin in less than two weeks, Kim arranged a meeting with Sanchez, which resulted in Sanchez ordering Kim not to reveal the problem to the board. Instead, Sanchez promised he would handle the situation on his own. Because Sanchez has been repeatedly unreliable in the past, Kim is skeptical of Sanchez and his ability to control the situation on his own.

Decision Options

Decision Criteria
Evidence
Acting in best interest in company
Values of the company

Recommendation
Kim should re-negotiate the time period he is allotting Sanchez to talk to the board, due to the time constraints of the audit. Kim should minimize the time period to 48 hours to speak with board. If Sanchez speaks to the board within that time frame, the decision rests in the board’s hands to decide what to do. If at that point Sanchez has not spoken to the board in the allotted time, Kim should address the situation at hand to the board.

When addressing the board, Kim should present them with a detailed outline that Sanchez is breaking policy by covering up personal expenses as business expenses. Then he should stress the importance of

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