ABD LENDING CORPORATION
ABD Lending Corporation is a 10-month old business located in Cebu City Uptown
district. Its principal business is lending money to the lower and middle classes of
people. Although it is a new lending company, it has many borrowers.
The president of the corporation is a socially oriented person. His loan policies are
attractive. As a result, the volume of business keeps on increasing every month.
The president of ABD Lending Corporation is very active and generous in social
development projects for the poor. With the approval of the Board of Directors,
he has been donating big amounts of money to victims of natural calamities,
scholarships for the poor students, and for the street children. Such philanthropic
activities of the president have pushed the limits of many stockholders. They
claimed that such money for the poor should be used for business expansion.
They said that this is not yet the proper time for the young corporation to engage
in charity. This coming stockholders meeting, they intend to vigorously oppose his
1. If you were the president, how would you defend your activities for the
2. Do you agree with the stockholders? Why?