Case Applications For each case, apply the weight-of-reasons approach to develop a course of action for addressing the ethical dilemma. Identify the issue, state the facts, identify possible courses of action, assess the expected consequences of each, apply your principles, and come up with a quick-fix action to address the issue. In addition, consider steps you could take to develop a long-term course of action that addresses the underlying cause of the problem and reflect on the lessons you have learned from engaging in this process. Case 1.1: Getting Funded It's hard to be a start-up. To get funding from major venture capitalists with deep pockets requires having a good story. NOTHAM Foods's story had two parts that the company's charismatic founder Daniel Certech regularly pitched to investors. The first was about its rapid growth in sales. The second dealt with the scientific advances it was making in the use of plant proteins that could be used to feed the 9 billion people who would inhabit the planet by 2050. However, Jane Ireland, a newly hired accounting employee, noticed that to boost sales the company was systematically buying back its own inventory, expensing the buybacks as marketing costs under the category of Inventory Consumed for Samples and Internal Testing. This practice did not seem right, though she did not know if it was illegal. In the company lunchroom, she remarked to Anne Spinoza, a colleague and a friend who did research on plant proteins, "It's just a matter of time when there will be consequences. Investors will figure this out when they scrutinize our accounting. They could pull financing and we would not have the cash to keep going. What if they thought they were duped and brought a fraud case against us?" Anne replied, "You know, the yellow pea protein project on which I am working hasn't yielded any results, but Daniel keeps touting it as a winner." What should Jane and Anne do? Case 1.2: Recommending an Acquisition 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 successful start-ups. 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? La (Ctr)