Case 13: Family Business
1. What are the ethical issues in this case?
One obvious ethical issue in this case is whether Eddie should be taking advantage of his
2. Is a family business different from other types of businesses with respect to employee
treatment?
In terms of ethical treatment, you could easily argue that all employees should be treated equally
whether it is a family business or not. In practice, many small business owners give preferential
treatment to friends and family. Some could argue this is an ethical practice in a family business.
Owning a company should not give one the right to treat employees unfairly. If this were so, then
3. What was Jane’s ethical dilemma?
Jane’s ethical dilemma was whether to ignore the questionable practice (thus ensuring her
relationship with her boss, Eddie) or to report the practice to Brad, the owner (thus risking
retaliatory action by Eddie). Other issues include: Does Jane have an ethical obligation to Brad to
make him aware of the practice? Does Jane have an ethical obligation to the other service
technicians to expose the practice? Jane has been put in a difficult position. On one hand, she
4. What should Jane have done? Why?
One reasonable course of action would have been to meet with Eddie and to tell him he ought to
reconsider this practice or that she would feel obligated to inform Brad of the practice. She could
have asked Brad if he was aware of the practice. He might have been aware of the practice. In