Business 4350 Assignment 4


Assignment 2

BUSI 4350

May 09, 2021


Date: May 09, 2021
To: Ethics Department
Subject: Ethical Reasoning

Luke has been assigned to a project involving the development of property recently
acquired by ABC for the construction of an adult entertainment department store. The land is on
the corner of the neighborhood where Luke’s brother, Owen, lives. Luke is well aware that if the
store’s plans are made public, the local neighborhood’s land prices will plummet. Luke is worried
with his company’s confidentiality obligations. On the other hand, He is close friends with Owen,
who informed him recently that he had received a “fair” bid to sell his property in the present real
estate sector.

The ethical issue that arises from this developmental project is whether Luke should

disclose the known facts of his company to his brother Owen or should he keep it confidential as
to avoid any breach of loyalty as per the company’s terms. The ethical issue that Luke is facing
must be dealt with the following two ethical theories; Utilitarianism and Universal Ethics.

In definite terms, Utilitarianism is a set of utilitarian moral philosophies that recommend

acts that improve satisfaction and well-being for all human beings. While there are various types
of utilitarianism having various conceptions, the fundamental philosophy underlying them all is
to optimize value, which is mostly expressed in terms of well-being or comparable principles.
The greater good for the highest number of individuals is known as Utilitarianism. According to
this principle, an action is rational if it serves the majority of stakeholders. So, who are the
potential stakeholders in this scenario? Luke, Owen as well as their families is stakeholders in
this case, as are ABC Co. and its staff and major shareholders and the surrounding neighborhood.
We say with confidence that ABC Corporation will not prosper from this scenario considering
the facts. By disclosing classified documents, ABC will risk a strategic advantage. However, in
order for Luke to tell his brother about the upcoming hits to the RE market; he will have to leak
details as well. Furthermore, disclosing this knowledge may result in neighborhood uprisings.
Protests constitute a risk to many of the community’s households, along with ABC Co. Luke, on
the other hand, would not profit from this. Luke is jeopardizing his career by disclosing
classified details. If the landowners file a complaint against ABC, Luke may be named as the
cause of the breach. Owen would be the only one who would prosper from this. Other property
owners and families in the neighborhood would not be able to profit from this knowledge, while
Owen would. This represents just a limited portion of the total number of stakeholders.
Considering this, Luke ought not to expose his company and its knowledge to Owen if he uses
this tool.

In addition to this, according to the Universal Ethics, an action or a decision is in ethical

boundary if it is a law that covers every individual. We must examine the impacts of this
decision on ABC Company and the environment under this definition. Owen would have the
potential to manipulate the real estate industry through making a somewhat more accurate
judgment relying on this confidential material if Luke shares this knowledge with him. The real
estate industry is suffering as a result of this. In addition, if Owen is dissatisfied with this
knowledge, he may discuss it with other landowners in the neighborhood and plot a protest


against ABC. This may have an effect on ABC’s project by preventing them from building in this
location, which would have a detrimental effect on their venture. There will be even more
adverse consequences on ABC’s developments and much more unintended consequences to the
real estate sector if anyone in the ABC Company had access to this knowledge. It is clear that it
is not in Luke’s best interests, since he is a loyal worker and supporter of ABC. Luke must not
disclose this knowledge, as per the Universal Ethics.

By keeping in mind, both the ethical theories; Utilitarianism and Universal Ethics, we

reach a verdict that it is certainly not in the favor of Luke if he shares his company’s valuable
and confidential information with a relative. As an employee, this responsibility falls upon him
that he should be able to keep work and family apart and not jeopardize his career and
employment by helping out a relative who would solely benefit from this knowledge. Each pf the
arguments presented above lead us to the negating the idea of sharing confidential data and
create a breach of loyalty. Therefore, Luke should remain silent on the matter and Owen should
make his own decision. This way no one is hurting anyone and no damage is being done to the
majority of stakeholders.

Thank you.


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