William Yurchak, vice president of production for Dragonfly Enterprises, was passed over for what he believed was a much deserved promotion to the presidency. Instead of promoting Yurchak, the board of directors of Dragonfly, a firm that specializes in the development and production of recreational aircraft, decided to hire an outsider.

Clyde Kellor, the chair of the board of Vostok Incorporated, one of Dragonfly’s chief competitors, offers Yurchak the presidency of Vostok.

Although Yurchak still has three years to run on his contract with Dragonfly, he is tempted to take Kellor’s offer because he feels that he has been badly treated by Dragonfly and because he could use the 50 percent raise that Kellor has offered him. Kellor has added one stipulation: He wants Yurchak to bring with him the plans for Dragonfly Six, the corporation’s latest revolutionary aircraft.

Was it ethical for the board of Dragonfly to hire an outsider as president? Is Kellor’s offer to Yurchak ethical? Would the offer be ethical if Kellor had not added the request for the Dragonfly Six plans?

What is the ethical course of action for Yurchak?

Explain all of your answers.