Step 1: Obtain Relevant Facts.

Step 2: Identify Ethical Issues

Step 3: Who is affected and how is each affected?

WHO HOW

David Lawyer ● Hours in law practice may be affected.

● May lose trust of clients in small loan company.
● Little commitment to company may lead to abandonment.
● May experience losses.
● Performance evaluation will be affected.

Employees ● Will lack guidance from their boss and are therefore left unattended.
● Hours of work may be affected due to absence of leader/owner(David).
● Pay will be affected.

Small loan company ● Little commitment to company will lead to poor performance or eventual
shutdown of operations.
● May not operate effectively and efficiently due to absence of David.
● May not provide services adequately and appropriately.

Business executives and ● May not receive the services they deserve.
Small companies ● May disregard the company’s credibility.
● May choose other loan companies other than David’s.

Step 4: Alternatives

David’s Available Alternatives

● Delegate work in the loan company by hiring qualified employees.
● Manage time in order to work in the loan company and law firm at the same time without compromising
either of the two.
● Let the employees in the law firm work also in
the loan business company.
● Discontinue the operations of the loan company.

Step 5: Consequences of each alternative

In deciding the consequences of each alternative, it is essential to evaluate both the short- and long-term effects.
There is a natural tendency to emphasize the short-term consequences may be important. For example, consider the
potential consequences if :
● Delegating work in the loan company would make the operations in the loan company more efficient and would
generate more income for David if it manages to secure the market and attract loyal and qualified customers.
But the company would have to be autonomous thus David would not be involved in its operational business
decisions
● David would have a busier and more complicated work life as demands of the business and career would have
 to be met. This would result for David to be overworked and distracted compromising the quality of work of
both ventures.
● This would make his work easier to handle and his relationship with co-workers would create a comfortable
work environment in his loan business. However, they would ALL have to juggle responsibilities in both work
and business which would affect the quality of work of the loan business ,but most of all, the law firm in which
all employees have legal obligations.
● This would disappoint shareholders and clients who would have invested time and money in the business, it
would prevent further risks from taking place in doing business

Step 6: Appropriate Action

Only David can decide the appropriate option to select in the circumstances after considering his inclination in risk-
taking and the likely consequences of each option. At one extreme, David would put other professionals in charge in
his business in order to capitalize the most profit in both his career and business while preserving his quality of time
and focus however he would be uninvolved in the business decision-making process