IT Ethics Dilemma: Withholding Information from a Client

Stakeholders and Facts

The stakeholders in this case are the employees of Supernova Industries and their IT staff, because their performance and effectiveness will be affected by the decision. The manager of the consulting company is another important stakeholder, as the decision will affect his success in growing business for the firm. Finally, the IT consultant — the author of this analysis — is an important stakeholder because his professional judgment and integrity are directly affected by the decision made in this case.

The relevant facts in the scenario are as follows:

1. Supernova Industries has contracted with the consulting company to develop a business system for them.
2. Supernova's staff is expected to take over the support function after the system's launch and training.
3. Based on professional judgment, the Supernova team will not be able to handle the support function and will continue to depend on the consulting company.
4. An alternative plan is available that would increase the initial budget but save Supernova the cost of long-term support services.
5. This information has been communicated to the manager.
6. The manager has prohibited the consultant from making this recommendation to the client, as withholding it would result in increased long-term business revenue.

Ethical Concerns and the Core Dilemma

The facts that raise ethical concern are that the manager and the consultant are in possession of information that could materially influence the decision of the client, Supernova Industries, who has placed trust in the consulting company's professional judgment and services. Sharing this information with the client would result in significant savings for Supernova but a loss of potential revenue for the consulting firm. The manager, who holds authority over the consultant, has expressly forbidden disclosure of this information.

The major ethical dilemma that must be resolved is whether the consultant should obey the manager and withhold this information from the client. Obeying the manager would protect the consultant's employment and potentially lead to career benefits from the additional support-service revenue. However, it would also cause personal guilt and could damage professional credibility if the withholding were later discovered. Refusing to comply might cost the consultant a promotion, pay increase, or even employment — but would preserve professional integrity and ensure the client's best interests were served.

The client, Supernova Industries, has the right to receive complete and accurate information that could influence their business decisions, and the right to expect the consulting firm to act in their best interest. Their corresponding duty is to pay the consulting company for services rendered according to the contractual terms.

Rights and Duties of Each Stakeholder

The manager has the right to allow or prevent actions that could negatively affect the organization, and he has the corresponding right to expect professional compliance from employees. The consultant has the right to exercise professional judgment and to have that judgment heard by management. He also has a duty to obey his manager, unless compliance would require an illegal or deeply unethical act.

The Australian Computer Society's Code of Ethics (ACS, 2012) describes six values that should guide decision-making in this situation. The first value states that the public interest must take primacy over personal and business interests, raising the question of whether the client's interest constitutes a public interest or merely a business one. The second value requires the professional to take steps that improve the quality of life of those affected by his work, including the manager, colleagues, and clients. The third and fourth values require honest representation of knowledge and products, and diligent work in the interests of all stakeholders. The sixth value requires upholding the integrity of the ACS and its members.

Guidance from the ACS Code of Ethics

In addition, Clause A2 of the ACS Code of Professional Conduct (ACS, 2012) requires the professional to refrain from deceiving clients for short-term gains. Clause A8 requires the professional to innovate on tasks to improve efficiency for the client and to make the client aware of any such improvements. Both clauses strongly support disclosure of the alternative plan to Supernova Industries.

I would resolve the dilemma by stating my inability to comply with my manager's request. The Australian Computer Society's Code of Ethics places great emphasis on honesty and diligence in the interests of all stakeholders. The client will be most directly affected by the decision, and their interest is simultaneously a public and a business interest. Moreover, the integrity and reputation of the ACS are also at stake. Therefore, I would inform my manager that I am unable to withhold this information, leaving it to him to determine the next step.

In terms of impact: my manager would be informed of my position and would be able to take whatever steps he deems appropriate to protect the firm's business interests. I would have resolved my ethical dilemma by refusing to withhold information from the client and making my intentions transparent to my manager. The client, Supernova Industries, would potentially be saved from incurring the additional long-term costs of unnecessary support-service fees.