Rachel is the HR director for a branch of an accounting firm of approximately $250$ employees in

the greater Cincinnati area. Although the firm headquarters is in Cincinnati, the branch in which

Rachel works is located across the Ohio River in Kentucky. Recently, one of the firm's rising

stars, who was on track to make partner, began transitioning from female to male. Rachel worked

hard to understand and accommodate Adam $($formerly Adele$),$ but the firm partners seemed

unclear on what to think of the whole issue. Adam had been with the firm $10$ years and was well

known for providing quality service to his clients. As Adele, Adam had passed the CPA Exam

with flying colors and had handled many high$-$visibility clients until recently. About eight

months after Adam began transitioning, he walked into Rachel$$s office with a few concerns.

Adam had a list of programs that he had consistently asked to attend to prepare himself for going

up for partner the following year. When Adam was Adele, his managing partner was eager to

send him to all sorts of conferences and development opportunities. Now, as Adam, every

request he has made has been rejected, and others were sent to the events instead. Recently, one

of his biggest clients had been handed over to another accountant to manage. Adam was

frustrated and asked Rachel to help. Rachel agreed to investigate.

Rachel knew that there were no private employment protections for transgender employees in

Kentucky, and there were inconsistencies across courts at the federal level, leaving Rachel

unclear that the law would help her in this case. When Rachel approached Adam$$s managing

partner, the partner simply stated that there was no discrimination because Adam was a man and

it was important for the company to support female partners to demonstrate their commitment to diversity. $$Besides$,$ what would it look like for us to send Adam now? People know him by his

former name, and I don$$t think anyone will take him seriously. This would embarrass the firm

tremendously and create problems with our client base. While I$$m all for keeping Adam on$$

he$$s a good hard worker$$I just don$$t know if partner is the right thing for Adam,$$ the partner

stated unequivocally and firmly.

$1.$ What are the firm$$s ethical obligations to Adam?

$2.$ What do you recommend Rachel do in the case of Adam?