North Bank has a loan receivable from Westminster Publishing Company. Westminster is late making payments to the bank, and Richard Connelly, a North Bank vice president, is helping Westminster restructure its debt. Connelly learns that Westminster is depending on landing a \($1,750,000\) contract from Aubrey Theater, another North Bank client. Connelly also serves as Aubrey’s loan officer at the bank. In this capacity, he is aware that Aubrey is considering declaring bankruptcy. Connelly has been a great help to Westminster, and Westminster’s owner is counting on him to carry the company through this difficult restructuring. To help the bank collect on this large loan, Connelly has a strong motivation to help Westminster survive.
Requirements
1. Identify the ethical issue that Connelly is facing. Specify the two main alternatives available to Connelly.
2. Identify the possible consequences of Connelly identifying Aubrey’s financial position to Westminster Publishing Company.
3. Identify the correct ethical decision Connelly must make based on the two alternatives identified in requirement 2.