Ira Koslowsky, a star employee, was on the fast track at Grandiose Private Equity, Inc. On his
Question:
Ira Koslowsky, a star employee, was on the fast track at Grandiose Private Equity, Inc. On his own he had borrowed money, creating a stake for himself of about $1 million in LUBICATe, an up-and-coming chemical company. Koslowsky studied the company carefully. It had patents on an exclusive catalytic process, for which other firms surely would be willing to pay top dollar. In addition, he believed its management were experienced pros who had done prior successfulstartups. He understood that they were now ready to sell LUBICATe and move on. He wanted to recommend the sale of LUBICATe to Grandiose. If Grandiose decided to buy the company, his investment in LUBICATe was likely to more than triple in value. He did not think there was anything illegal in making the recommendation, but he worried about how his bosses at Grandiose might respond if they found out about his stake in the company. At the top of the organization he was pretty sure this kind of inside dealing commonly took place, but nobody talked about it. From where he stood in the organization, the company seemed awfully fussy about potential conflicts of interest. What should Ira do?
Step by Step Answer:
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave