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Gilbane Gold Case Study

Decent Essays

Subject: Duty to Disclose
Within the Gilbane Gold case, the major problem is the contribution of water pollution by dumping chemicals to speed production for Z CORP. However, there is doubt as to what extent the company violated city regulations. Tom Richards believes that Z-CORP broke regulations repeatedly but Professor Massin believes that it is not solid evidence. Part of the problem is that two different tests are involved: an older and a less sensitive test which does not break regulations but there is also the newer and more sensitive one which does. The newer test was said that the company just broke city regulations, but not by a large amount.
There is the question about the legal status of the new tests. Would the city use the …show more content…

How large is this problem? The problem was unsure to the participants in the case but the problem is significant enough that it is brought to attention. It was also presented that the new tests would be expensive but this a very small factor to this problem.
What would happen if Z CORP executives took David's suggestion and presented their problem to the city (if it is a problem)? Would city bureaucrats spot Z CORP's financial difficulties and attempt to work out a reasonable agreement with Z CORP? If Z CORP executives knew the city would be willing to do an agreement - perhaps by providing Z CORP added tax relief - they would not hesitate with David's suggestion. It is unknown to how the city of Gilbane would respond to this situation, but assumptions as to how the city would react can have a great influence on an executive's position on what should be done.
David is an employee to Z-CORP and thus has the responsibility to protect the company to the extent of ethical concerns. His responsibility is to not only look after the integrity of the company, but to also ensure that a large profitable plant continues as the company employs many of the local residents. Furthermore, the city may well have been unfair to Z CORP in imposing the harsh standards after Z CORP had moved to Gilbane and not providing financial assistance. Other companies may also be facing the same problem as Gilbane and would it be financially safe to

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