Is this any of our business?

You are about to hire a vendor who is giving you a great deal for its services. Then you hear the vendor's low prices may stem from its use of illegal immigrants. Should you stay out of the matter or investigate further? In the fifth of a series of case studies on ethics, two financial executives and an ethicist debate whether and when to be "your brother's keeper."

"So, Kelly, are we set on the custodial contracts?" asks Masahito, CFO of an IRM Consolidated team that includes Kelly and Juan. "Quikclean had the lowest bid," Kelly responds, "but word on the street is Quikclean charges so little because it uses undocumented workers."

"So what?" Juan asks. "Everyone knows most custodial firms use illegals." Kelly jumps in, "Just because some companies do it doesn't make it right. I think we need to report Quikclean."

"You're kidding, right?" responds Juan. "Why should we get involved in its hiring practices? Besides, we require all vendors to sign a certificate saying they comply with the law."

"Juan's right," Masahito says, "but the laws have changed. A signed document isn't enough anymore if it can be proven we knew laws were broken. Plus, new federal sentencing guidelines punish us if we don't report illegal activity."

Juan is dumbfounded. "How far are we going to go? Which red-tape form do we submit in triplicate if one of our suppliers drives 56 miles per hour?"

Kelly cuts in, "You know how operations like Quikclean work. It can do anything it wants to those workers, knowing they won't say a word. If we don't report Quikclean, we're condoning - and indirectly participating - in their activity."

Juan replies, "Reporting Quikclean won't change anything. They'll get a slap on the wrist and contract with our competitors, and we'll end up paying more for poor janitorial services."

"Remember," Masahito cautions, "we don't know yet exactly why Quikclean charges less." Kelly concludes, "If they're breaking the law, Masahito, you'll have to make the decision. Obviously Juan and I don't see eye-to-eye on this one."

Does IRM have a moral or legal obligation to discern Quikclean's hiring practices? If IRM learns that Quikclean does hire undocumented workers, what should Masahito do? Does it matter that he's making a decision for a team instead of on his own?

Change the scenario. A team member obtains evidence proving one of IRM's competitors contracts with a vendor employing illegal workers. What should the team do?

THE GOLDEN RULE by F.A. Richard...