Reference no: EM131544758

After he learned that corporate sleuths hired by a contractor for P&G had obtained confidential information by rummaging in Unilever trash bins, chairman John Pepper informed Unilever of the violation of P&G's own ethics code and promised not to make use of the information. Unilever responded by demanding cash compensation, the removal of P&G employees who had seen the information from positions in which they could use it, and the installation of an independent monitor at P&G to ensure that the information is not used.

1. Is dumpster diving an ethical way of acquiring information from a competitor? If companies do not take precautions, such as shredding vital documents, why should they be protected from prying eyes? Would it make a difference if the dumpster were on private property or on a public street?
2. Although John Pepper acted courageously in notifying Unilever, was his action morally required? In view of the reaction from Unilever, did he act wisely?
3. Is Unilever owed any compensation? What harm has the company suffered for which they should be compensated?