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As an Executive in a Mid-Sized Manufacturing Firm, Cal Finds

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As an executive in a mid-sized manufacturing firm, Cal finds himself thrown together with Harry, who works for a different unit of the firm. He and Harry are in the same community; their children are in the same schools; they often show up at the same social functions; and they play golf together fairly frequently.
One day, to Cal's deep dismay, he hears that Harry had been implicated in some financial irregularities at work. The issues while serious leave some room for doubt. There is reason to think Harry got ensnared by regulations, though he may have afterwards tried to cover up that entanglement by being less than forthright. Cal has heard from Harry that he was uncomfortable with the way he handled one of the contentious matters. Using Kohlberg's model of moral development, explain what Cal should do with the information he has discovered about Harry.

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Cal is facing a dilemma of being loyal t...

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