Does Susan have an ethical obligation to disclose the information about Jerry to the city planning commission?  Discuss fully.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Susan Whitehead serves on the city planning commission. The city is planning to build a new subway system, and Susan's brother-in-law, Jerry, who owns the Custom Transportation Co., has submitted the lowest bid for the system.  Susan knows that Jerry could complete the job for the estimated amount, but she also knows that once Jerry completes this job, he will probably sell his company and quit working.  Susan is concerned that Custom subsequent management might not be as easy to work with if revisions need to be made on the subway system after its completion.  She is torn as to whether she should tell the city about the potential changes in Custom Transportation's management.  If the city knew about the instability of Custom, it might prefer to give the contract to one of Jerry's competitors, whose bid was only slightly higher than Jerry's.  Does Susan have an ethical obligation to disclose the information about Jerry to the city planning commission?  Discuss fully.

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Ethical obligation means certain course of action that is required to be followed by an individual. It is something that is required by someone to do.

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