George went to college and worked part-time at a car parts store. He had been hired at the store because his good friend John was one of the night managers and had put in a good word for him. The job was ideal for George’s school situation since the store was located directly across the street from his college, and the hours did not interfere with his school schedule. Not only were the location and hours convenient, but the work was fun and entertaining because George got to work with John, one of his good friends and the manager. George usually worked at night when he and John were the only two employees in the store. He really enjoyed the job and intended to stay there until he finished college. About one month into the job, George began to notice strange things going on: John would disappear for 30 minutes at a time. At first George did not think much of it and, for the most part, just did what he was told to do. Another month passed and he started noticing that John was constantly in the back room checking the inventory. The only reason this seemed odd was because George had worked with other managers and they had not done this. When John would return from the back of the store, he would have a list filled with different part numbers. He would then sit at one of the computers and begin to print multiple invoices. To add to the peculiarity of this situation, George also observed John opening his cash drawer and removing money on numerous occasions. When George questioned John about what he was doing, John said that he was dealing with returns from earlier that day and that it was a routine procedure regularly done at night. Another week or two passed and John continued to do the same thing. George questioned him again. However, this time George was a little more insistent on a truthful answer. John said that he would tell George the secret if he would not let anyone else in on it. Eager to know what was going on, George agreed.

John got on a computer and began to type in the identification numbers of different parts in order to see how many of each were currently in the inventory system. He then walked to the back of the store and checked to see if the inventory in the computer was correct. If yes, it was no big deal and he did nothing. However, if John did discover an extra part that was not identified in the inventory database, he made minor adjustments, searched the sales history of that particular part, and retrieved various invoice numbers and dates that he used to perform a cash refund. He would keep the cash for himself and sign off on the return with his own management approval. It was blatantly obvious to George that this was wrong. He knew that it was dishonest and illegal. Still, he was confused about what to do about the whole situation. Which side was he supposed to take? He had been friends with John for over five years and they had been through a lot together. On the other hand, John's actions were wrong and could have serious legal repercussions. George never thought of himself as a "rat" or “tattler” and he did not want to be involved in this situation. However, he now was involved and faced a difficult challenge. Where was he supposed to start? How should he approach the situation? George knew he wanted to talk to his friend, but he did not want to come off as a “goody-two-shoes.”

QUESTION : What should George say to John, and when, and where? Who are the stakeholders in this scenario and how are they affected?