Federal Credit Bank has a loan receivable from Hawthorne Construction Company. Hawthorne is late making payments to the bank, and Robert Wheeler, a Federal Credit Bank vice president, is helping Hawthorne restructure its debt. Wheeler learns that Hawthorne is depending on landing a \($1,000,000\) contract from Starstruck Theater, another Federal Credit Bank client. Wheeler also serves as Starstruck’s loan officer at the bank. In this capacity, he is aware that Starstruck is considering declaring bankruptcy. Wheeler has been a great help to Hawthorne, and Hawthorne’s owner is counting on him to carry the company through this difficult restructuring. To help the bank collect on this large loan, Wheeler has a strong motivation to help Hawthorne survive.
Requirements
1. Identify the ethical issue that Wheeler is facing. Specify the two main alternatives available to Wheeler.
2. Identify the possible consequences of Wheeler identifying Starstruck’s financial position to Hawthorne Construction Company.
3. Identify the correct ethical decision Wheeler must make based on the two alternatives identified in requirement 2.