A long-time customer approaches you for financing for a new business venture. The customer offers as collateral a piece of property it has purchased in a rural location for the purpose of building a housing development. You send an appraiser to the property and he accidentally discovers that this property holds toxic waste. Youre sure this customer is unaware of the waste; in fact, the waste is migrating and in a few years will invade the water table under a nearby farmers fields. You explain the situation to your manager, who naturally instructs you to refuse to accept the property as collateral, but he also forbids you to mention the toxic waste to the customer. Let them find out about it themselves, he says.
In the scenario given, what is the ethical dilemma? What should you do? Support your answer using at least two ethical theories. (2.5 Marks)
Do you perceive your manager to be ethical or unethical? Explain your answer in detail. (2.5 marks)
In this case, should you blow the whistle? Define whistleblowing. Describe the motives whistle-blowers and under what circumstances whistleblowing is justified? (2.5 marks)
Based on the given case study, provide three reasons why ethics is relevant to business? (2.5 marks)