Please use the seven -step case analysis methodology to analyze this case study.

Resolving Ethical Business Challenges

Nevaeh, a recent college graduate, works for JSYK Incorporated, a realty company that represents clients interested in either buying or selling businesses. As a business broker, Nevaehs job was to arrange sales just like a normal realtor. On the outskirts of town, a small building used for manufacturing sat idle for more than a year. No one could find a buyer for it; either the price was too high or the building did not quite match the buyers needs. Dozens of potential buyers had come and gone. It did not help that the building was owned by Ted St. Clair, a 65-year-old miser that lived in the town all his life. The man had a reputation for hoarding every last dime. While JSYK Incorporated told Ted more than once he needed to lower the price if he wanted to sell the building, Ted always refused.

One hot afternoon Reverend Smith, a retired minister, contacted JSYK and asked if he could look at the property. Because Nevaeh was in the office, it was given to her. While they inspected the building, the conversation came around to what Reverend Smith would do with the building. He had recently formed a nonprofit corporation to aid troubled youth and wanted to convert the building into a recreation center. Nevaeh knew Reverend Smith because she formerly attended his church. She knew of his honesty and integrity as well as his decades of service.

When Nevaeh returned to the office, the reverend was seriously talking about the building and how it could be refitted for his purposes. As they talked, the reverend asked about the machinery still in the building. Some of the machines at the manufacturing plant were in poor condition and required an estimated $100,000 to repair. Reverend Smith had no use for them and would need them removed.

After preliminary discussions, Nevaeh said she would contact the owner. Reverend, I believe the seller is asking for a $250,000 down payment on this $1,000,000 sale.

I cant afford that much, replied the reverend. Ive been saving donations for a number of years and I only have $150,000.

If I may ask, asked Nevaeh, How are you going to pay the balance?

Well, Ive spoken to some older church members, and they told me that if I could make the down payment, they would cover the rest.

Ill try to work with you on this. Give me a few days and Ill call you, said Nevaeh.

As Reverend Smith left, George, the owner and CEO of JSYK, came into the office. What did Reverend Smith want? asked George.

Hes actually interested in Moby Dick, and I believe it matches his needs perfectly.

Thats great! George replied. Then he noticed Nevaehs face. So whats the problem?

You and I both know Ted will not come down on the price. Nevaeh quickly explained the situation, with George listening intently. After she was done, George said, Nevaeh, this is what you are going to do. I want you to convince Ted that repairing those machines is important to the buyer. DO NOT tell him who it is. Tell Ted the buyer wants the machines, but the repair estimate he calculated is $150,000. Tell Ted you know you can get the buyer to buy if the down payment was reduced to $150,000 and the asking price to $950,000. Finally, tell Ted he would be making an additional $50,000 for not having to do the repairs himself.

I dont know about this, said Nevaeh. It doesnt feel honest, and besides, Reverend Smith has not approved the deal, nor do I believe he would want me to lie on his behalf.

George replied, Nevaeh, the reverend is going to do something good with that building. You and I both know Ted will never get more than this. Were just helping him make the best deal possible.

Nevaeh still was not certain. Although Ted was a miser, it did not feel right to lie. Besides, she wondered what Ted would do after he found out the reverend had no use for the machines.