You are to assume the role of an assistant manager at SOUTHWEST EATS, a family-owned restaurant with three locations in a medium sized city. Another employee has learned that a member of management may be acting improperly, and has asked you for advice. The employee believes that the manager in question may be using company equipment and funds improperly to support a privately owned restaurant that he and other family members have started on the side. The employee suspects that the manager is using significant company resources including, time on the job, office supplies, equipment, software, and travel expenses to support this other restaurant. In addition to the direct use of company resources, the employee also suspects that at least one of the company’s major suppliers has provided free materials and equipment that were used in the operation of the private business. For the past few months, the employee has confidentially researched this issue and has confirmed this hunch about this improper activity. In fact, just two weeks ago, the employee inadvertently learned that a distributor of industrial kitchen equipment, who is bidding on a contract with SOUTHWEST EATS, has sent some equipment to the manager’s restaurant to “test it out.” The employee has asked you to discuss the situation and then advise him/her about what course of action to take. He/she is worried about reprisals and is not sure about whether the manager’s actions are illegal, unethical or innocent.
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