A mid-level manager at Fran-Tech, a Seattle software company, received a CD-ROM set containing the source code for a competitor’s software product. The competitor is the market leader in the software niche in which both companies compete; it is crushing Fran-Tech in the marketplace. An anonymous note accompanying the package stated that the package was sent by a disgruntled employee of the competitor and urged the recipient to use the data “as you see fit.” The manager receiving the data was considered to be a “star” performer by her boss and her peers.

1. What do you think the manager is likely to do in this situation? What should she do and why?

2. Explain the relevance of ethical leadership in this situation. What will an ethical leader do and why? What will an unethical leader do?

3. Consider how the manager’s response to this situation can impact the ethical behaviour of her employees in the organization. What are some of the potential implications of her actions for employees and the organization?