Case Analysis: Disclosure Dilemma

The Decision Maker and the Issue

Dylan worked as a manager at a leading consumer electronics company. His role
is to frequently interact with industry partners and customers. Suddenly, he met a
customer of one of his company’s custom products for a purpose. During their meeting,
the customer wanted to know the method of making the chip, a process which was not
specified in the given datasheet. The client claimed this information was needed to
ensure that the chip would function properly when it was integrated with electronic
appliances. With this information, Dylan was the decision maker of this study.
With regards to the issue of this study, Dylan was uncertain to give the details of
what client wanted to know since the requested information was protected under his
company’s non-disclosure agreement (NDA). Dylan tried to discuss this to his
supervisor but unfortunately, Dylan’s manager was overseeing many projects. Given the
fact that if the customer could not abide by the NDA, Dylan would say that the contract
should be broken off. Besides, it’s highly unlikely extra chip information would be used
by Dylan’s client for malicious purposes. Does Dylan continue to give those details to
his customer? Given the idea that it will lose a significant amount of profit they had
intended on garnering from selling the chip, or does Dylan refuse to give such details?
Since its disclosure could potentially affect his company’s reputation, lead to mistrust in
the company and compromise his position.

Possible Courses of Action

● The first option Dylan has is to schedule a time between him and his supervisor
to discuss the problem thoroughly. He should make an appointment as soon as
possible to ask for his supervisor’s advice and consult for suggestions on
resolving the company’s issue with the client because they hold a higher position
and are more knowledgeable. This option will make Dylan’s final decision to be
well thought out and avoid consequences. However, this would take more time
before he could take proper action because he must rely on his supervisor’s
schedule. In this case, Dylan must also approach the client and request more
time before overseeing the situation.
● Another option for Dylan is to directly disclose the process of making the special
chip to the client. This option will help the client save time, and Dylan’s company
will continue to profit from the client’s investments in developing the product.
However, this would also result in Dylan breaking his NDA with the company.
Breaching the agreement could risk Dylan’s position in the company and his job
and tarnish his work reputation. Also, this violates not only the NDA and
company policy but also the rights of the team members working on the special
chip. Furthermore, the client could also leak the information to another party or
publicly claim it as his. As a result, this could eventually cause profit loss for the
company and discontinuity of the product development of the special chip.
 ● In another case, Dylan could refuse to disclose the process of making the special
chip to the client. As a result, Dylan will not risk breaching his NDA with the
company and will guarantee the company’s trade secret protection from leakage.
However, if this path was chosen, the client could not finalize and complete his
product that needs the special chip. His action could also lead to losing one
investor, the client, who can support the development of the product, thus
reprimanding its final stage. Additionally, this path could also potentially give a
bad reputation for the company for not cooperating with its clients and investors,
which would result in finding fewer investors and customers for their products in
the future.
● Dylan could also decide to pursue the client into signing an NDA before
disclosing the information behind the special chip production. This way, he would
not suffer from any negative consequences or break the company’s
confidentiality agreement. The client could also finally examine the special chip to
ensure its functionality when integrated with electronic appliances. The company
would also continue its product’s development and would not lose any investors
or profits.

Potential Stakeholders
A. The Client
The client is the first person to be affected because if Dylan decided to
provide them with the requested information, then it will greatly benefit them.
However, their investment and the company’s profit will be at stake if they
break off the non-disclosure agreement and prevent them from selling the chip.
B. The Company
The company will also be affected since its reputation will be at stake if
Dylan shares confidential information, which will cause negative repercussions
and lead to mistrust in the company and compromise Dylan’s position.
C. Dylan’s manager
Dylan’s manager will also be affected since he entrusted him to take care
of the situation. If Dylan makes the wrong decision, his supervisor will also be
responsible and take repercussions. Saying this, his manager’s trust in him
will be at stake.

Duties of DM towards the Stakeholders

A. The Client

Employees play a pivotal role in building an atmosphere of trust,

confidence, and loyalty among your clients. Building strong relationships with
your clients will have long-term benefits. Look beyond just securing the sale, and
think about how you can leverage your customers to increase brand awareness,
 improve your product or service, and drive sales. And don't stop as you grow—
clients play these important roles throughout your business's lifecycle, so keep
nurturing that connection. Dylan, as the assigned personnel to interact with the
client, needs to choose whether to refuse to disclose any information to the client
so he will not risk breaching his NDA or pursue the client to sign a non-disclosure
agreement. Neither of both have the consequences. His actions may also result
in the loss of one investor, the client, who could help finance the product's
development, causing the product to be delayed. Furthermore, going this route
may give the company a negative reputation for not working with its clients and
investors, making it more challenging to find clients for their products later on.

B. The Company

Dylan works for this electronics company. He is responsible for producing

high-quality work for his employers and his company. He should also prioritize
them when making decisions because his decisions will affect not only the
company but also its partner company and its employees. The company has the
right to know all the decisions of its employees, especially if they have a large
impact on the company itself. He is in a situation that he can't solve alone. He
needs to inform the company so they can make an informed decision. The
decision about a product that has not been released yet and has a big
contribution to the company should not be made by a single person, but rather by
a group, so if any mistakes or negative effects happen, there is no one to blame.

C. Dylan’s Manager

The level of trust in the workplace has a significant impact on how employees
collaborate and work on the same project. Nowadays, the majority of employees
work from home or do hybrid work. As a result, employers have begun to
recognize the significance of developing trust. Dylan is fortunate in that he has
already gained the trust of his supervisor. Dylan's manager gave him his trust
and allowed him to manage the situation that he is facing. Dylan needed to follow
his manager and make the best decision in this situation. Also he needs to
accomplish this so that his manager doesn't lose his trust in him. Given the
situation, he needs to be persistent in asking his boss ideas regarding this issue.
He can’t decide on his own given that he and his supervisor will suffer from any
negative consequences if the clients leak the information to another party or
publicly claim it as his.

Final Course of Action

Considering the consequences of every option Dylan has, the last option would
be the most optimal decision for the situation. The client is very keen on accessing the
information behind the process of creating the special chip. And Dylan is under a non-
disclosure agreement that prevents him from freely giving the client the requested
information. So, the only option he could make to disclose the information without
negative repercussions is to have a non-disclosure agreement with the client. Doing so
will legally prevent the client from disclosing confidential information to protect the
company. And in return, the client could freely investigate the special chip to text for its
functionality when integrated with various electronic devices. The company would also
continue to benefit from the client’s investments in developing the product so that it
could finally be released in the market.
This action would also uphold Kitchener’s five moral principles: autonomy,
justice, beneficence, nonmaleficence, and fidelity. Firstly, it maintains the principle of
autonomy because the client has the freedom of choice to sign an NDA or not, and
Dylan will not coerce them, or else it will invalidate the contract. Though an NDA may
seem to distrust the client, it is a good countermeasure to prevent the leakage of
confidential information. If the client wants to use the information for testing the product,
then the client will most likely sign an NDA with the company. However, if the client
decides to disagree and still demands the information without the agreement, then the
company has a reason to suspect the client’s intention.
Additionally, this option also follows the principle of nonmaleficence because it
has no aim to cause any harm to Dylan and his action’s stakeholders. Rather it aims to
compromise the issue between the client and the company. Then for the principle of
beneficence, this action would benefit the client and the company. The client would get
what they want, and the company would continue to profit from the client’s investments
in their product. And Dylan’s reputation, position, or employment in the company would
not be at risk of being reprimanded.
Furthermore, because the action involves signing an NDA, it guarantees the
principle of justice. Just like Dylan has access to the company’s confidential information,
the client could also be granted access to the product’s information through a signed
contract. Then, to further ensure the contract’s justice and fairness, it must be valid and
beneficial for both parties. And if the client violates the NDA, the company could take
legal action against the individual. Lastly, for the principle of fidelity, Dylan could
maintain his integrity and commitment to the NDA because disclosing the information
will already be part of the contract with the client. Thus, he would not end up infringing
his NDA and disclosing confidential information to the client illegally.
In conclusion, since Dylan was in a dilemma due to being bound by a contract,
solving it with an agreement would be the ideal course of action. This action would also
have little to no negative ramifications because it satisfies the client’s demand and
maintains the company’s benefits.