Managing Organizational Behavior 2nd Edition by Timothy Baldwin,Bill Bommer,Robert Rubin

Exercise 7

Making a Difficult Ethical Choice
You have worked for your boss for five years, and he has become a trusted mentor for you in the firm. Indeed, there is no one in the firm toward whom you feel more respect or loyalty. You just met with him and, due to an unforeseen market downturn, he let you know of a proposed layoff that will affect one of the three people who report to you (Joe). Because the decision has not been announced, and it will surely send shockwaves through the firm, he asked that you absolutely not tell any of your subordinates. In fact, concerned the information might get prematurely leaked, he even says, "It is critically important that no one know. Can I count on you?" You agreed emphatically that he could. Unfortunately, that evening you see Joe, who coaches a little league team with you. He tells you he and his wife have been accepted into an adoption process for a new child and he wanted to share his joy with you. He also has heard rumors of a layoff and says, sort of jokingly, "I am not going to be laid off, am I? We could never afford to take care of a new child without my income."
What should you do? Is this an ethical issue? You are forced to choose between loyalty and your expressed promise on one hand, and your sense of caring and honesty toward Joe (and his potential new child) on the other. What factors will you consider in your decision? On what basis would you justify the ethics of your decision?