Jeff Sanders, head of finance for Components, Inc. has just interviewed Laura Dern, an employee from the finance department of InChip, Components' chief competitor. Laura has explained that she has been passed over one too many times for a promotion at InChip and is thus in the job market. As Laura is leaving she whispers to Jeff, "Look, I have no contract at InChip that obligates me in anyway. I can begin immediately. Further, I have been able to obtain copies of our newest computer chip designs. You'll have them before InChip even begins production."
A) Jeff should hire Laura on the spot without any worries about ethical breaches since Laura is not under contract.
B) Jeff's hiring of Laura may constitute an ethical breach, but would not constitute illegal conduct.
C) Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura's conduct to InChip.
D) Jeff should not hire Laura and need not worry about Laura's conduct and its impact on InChip.

Question

Quizplus · Accepted Answer

Jeff should not hire Laura because her offer to provide him with confidential information about InChip's newest computer chip designs would violate the principle of honesty and trustworthiness. The information would be considered a trade secret and is protected under intellectual property laws, and any disclosure or use of such information without InChip's consent could lead to legal action against Jeff and Components, Inc. Additionally, Jeff should consider the potential harm to his company's reputation if they become known for unethical behavior.

Jeff may also have an obligation to disclose Laura's conduct to InChip, as failing to do so could be seen as aiding and abetting in the misappropriation of trade secrets, and may also constitute a breach of fiduciary duty. However, the decision to disclose should be made after carefully considering the legal and ethical implications, especially if Jeff has evidence to back up Laura's offer.

Jeff Sanders, Head of Finance for Components, Inc