Dr. Jitendra K.

Sharma

CASE STUDY
The Cost of Keeping Secret
Philip, a design engineer, left his job with Lifeworth Tyres and joined their main competitor-
National Tyres. After six months, his new employer asked him to cooperate in designing a 1,20,000
Kilometer puncture-proof radial tyre. At Lifeworth, he played a significant role in drawing up the
plans for a similar tyre that National was interested in producing. National was also counting on to
revitalize its declining profit curve.

When starting with Lifeworth, he had signed a written agreement promising not to disclose any
classified information directly or indirectly to competitors for a period of two years after resignation
from Lifeworth. When he announced his departure, Lifeworth’s president had reminded him of the
agreement insisting on the fact that his work on the new radial was highly classified. Philip had
assured him that he will follow the agreement since National Tyre had given him every reason to
believe that it wanted him primarily in managerial position.

After six months at National, Jonhson, the engineering head made clear to Philip that his technical
input is urgently needed on new project. During a talk with director, Philip explained his dilemma.
While sympathetic to Philip’s dilemma, Jonhson broadly hinted that the refusal to give constructive
inputs would not only result in substantial disservice to National Tyres, but was also bound to affect
Philip’s standing with the company.
Jonhson said, “After all, it is very difficult to justify paying a man a handsome salary and planning
for his movement up the organizational ladder when his commitments lie elsewhere”.

Questions:
1. Explain the ethical conflict issue faced by Philip in this situation.
2. If you are in the place of Philip, what will be your decision?

CASE STUDY
The Cost of Keeping Secret
Philip, a design engineer, left his job with Lifeworth Tyres and joined their main competitor-
National Tyres. After six months, his new employer asked him to cooperate in designing a 1,20,000
Kilometer puncture-proof radial tyre. At Lifeworth, he played a significant role in drawing up the
plans for a similar tyre that National was interested in producing. National was also counting on to
revitalize its declining profit curve.
When starting with Lifeworth, he had signed a written agreement promising not to disclose any
classified information directly or indirectly to competitors for a period of two years after resignation
from Lifeworth. When he announced his departure, Lifeworth’s president had reminded him of the
agreement insisting on the fact that his work on the new radial was highly classified. Philip had
assured him that he will follow the agreement since National Tyre had given him every reason to
believe that it wanted him primarily in managerial position.
After six months at National, Jonhson, the engineering head made clear to Philip that his technical
input is urgently needed on new project. During a talk with director, Philip explained his dilemma.
While sympathetic to Philip’s dilemma, Jonhson broadly hinted that the refusal to give constructive
inputs would not only result in substantial disservice to National Tyres, but was also bound to affect
Philip’s standing with the company.
Jonhson said, “After all, it is very difficult to justify paying a man a handsome salary and planning
for his movement up the organizational ladder when his commitments lie elsewhere”.
Dr. Jitendra K. Sharma

Questions:
1. Explain the ethical conflict issue faced by Philip in this situation.
2. If you are in the place of Philip, what will be your decision?