Consider the following example:Ken is a process engineer for Stardust Chemical Corp., and he has signed a
Question:
- Consider the following example:“Ken is a process engineer for Stardust Chemical Corp., and he has signed a secrecy agreement with the firm that prohibits his divulging information that the company considers proprietary.“Stardust has developed an adaptation of a standard piece of equipment that makes it highly efficient for cooling a viscous plastics slurry. (Stardust decides not to patent the idea but to keep it as a trade secret.) Eventually, Ken leaves Stardust and goes to work for a candy-processing company that is not in any way in competition. He soon realizes that a modification similar to Stardust's trade secret could be applied to a different machine used for cooling fudge, and at once has the change made.”Has Ken acted unethically?
- In the following case, are the actions of Client A morally permissible?
Client A solicits competitive quotations on the design and construction of a chemical plant facility. All the bidders are required to furnish as a part of their proposals the processing scheme planned to produce the specified final products. The process generally is one which has been in common use for several years. All of the quotations are generally similar in most respects from the standpoint of technology.
Contractor X submits the highest-price quotation. He includes in his proposals, however, a unique approach to a portion of the processing scheme. Yields are indicated to be better than current practice, and quality improvement is apparent. A quick laboratory check indicates that the innovation is practicable.
Client A then calls on Contractor Z, the low bidder, and asks him to evaluate and bid on an alternate scheme conceived by Contractor X. Contractor Z is not told the source of alternative design. Client A makes no representation in his quotation request that replies will be held in confidence.
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher