Arron’s first options is to tell his employees about the extremely poor financial condition of the company and make necessary the cuts to regain profitability but also risking the possibility that worried employees will leave voluntarily, thus forcing the company into bankruptcy and devastating stockholders.  The second option is to protect his employees from worrying by keeping the company’s financial condition quiet as long as possible, keeping them on in the hope that things will turn around financially.
1. Using consequential, rule-based, and character theories, evaluate Arron’s options.

2. What should Arron do?  Why?