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FACTS:
I have been assigned the role of advising employees on ethical issues within the company and
its interest. The case I am working on involves Luke, a co-worker, who is taking on a project for
“ABC’. This project involves developing land to build an adult entertainment retail store. This
store is being developed right outside of Luke’s brother’s neighborhood. Luke is aware that his
brother has interest in selling his house for a decent offer he received recently. Owen, Luke’s
brother also says that he is unsure of the future for real estate values in his area and is unsure if
it is in his best interest to sell the property. In this specific case Luke knows that when the plans
for development are made public then the real estate values in the surrounding area will go
down.
ISSUE:
Luke faces the issue of protecting the interest of his company by not publicizing their plans to
his brother, or informing his brother of future developments and jeopardizing the secrecy of
the plans for his company. This particular case plays a role in honesty by omission and loyalty. If
Luke tells his brother of what is to come in the future then word might get around and
everyone one else might start to sell their homes in fear of future depreciation of value which
might hurt the business. If Luke is to stay loyal to his company and keep the plan a secret then
he financially harms his brother by allowing him to take a loss by not taking the current offer he
