SupplyCo is a supplier to a number of firms in an industry. Several companies are involved in the manufacturing processfrom processed parts to creation of the final productwith each firm adding some value to the product. SupplyCo provides materials and services to every part of the chain. By carefully study its customer data, SupplyCo discovers a plausible new model for manufacturing and distributing industry products that would increase the overall efficiency of the industry, reduce costs of production, and result in greater sales and profits for some of the industrys participants (SupplyCos customers). Implementing the model might hurt the sales and profits of some SupplyCo customers that did not have the manpower, plant or equipment, or financial resources to participate in the change. These companies might potentially go out of business, decreasing SupplyCos sales and profits in the short term. SupplyCo is considering research to further study the new model. SupplyCo. had the data within its warehouse only because of its relationship with its customers.

Question for discussion :

a Is it a betrayal to use the data in a manner that would cause some customers harm? Or does SupplyCo have a more powerful obligation to its stockholders and employees to aggressively research the new model?

b What are the implications of your answers even if there is no violation of law, industry regulation, or company policy?