Reference no: EM132249713

Critical Thinking 2 An Ethical Dilemma

Image Products Inc. and Lovan Corporation are major producers of shampoos, conditioners, and other bath products for women. They are also intense competitors. Recently, Lovan has surged ahead in the marketplace on the strength of a new shampoo that is outselling the leading products of all competitors, including Image Products. This new product is based on a supersecret formula that produces a bottle of shampoo with a silky texture and a pleasant aroma. Consumers love it. John Parker, a supervisor of the research and development department for Image Products, is under intense pressure to replicate Lovan’s formula. Unfortunately for Parker, all of his attempts to break the code have failed. As a result, Image Products has lost so much market share that company-wide layoffs are imminent. Parker’s wife and their daughter, who is three months pregnant, both work at Image Products. Both will lose their jobs in the first round if layoffs are necessary. Because the firm is located in a rural one-company town, the chances of his wife and daughter finding other jobs are slim at best. A potential solution has fallen into Parker’s lap. A disgruntled chemist from Lovan has applied for a vacant position in Parker’s department. He has made it clear to Parker that, if hired, he can bring Lovan’s coveted formula with him. However, he will do so only if Parker brings him in at top dollar—a demand that is not justified by the chemist’s credentials.

Assume that John Parker is a friend and that he asks your advice about how to handle this situation. What will you recommend to him, and why? What model would you apply in dealing with this dilemma if you were in Parker’s position? Why?