Sheila Mason & Craig Shepherd - Case Study Example

Sheila Mason &Craig Shepherd Case Study Evaluate the situation in which Mason and Shepherd find themselves with respect to their existing employers. What legal and ethical issues do you see, and how would you advise them to proceed? What should Mason and Shepherd do to terminate their current employment? Mason and Shepherd are faced with some serious decisions regarding their employment. Situations regarding their employment are dependent on making ethical business decisions. Mason and Shepherd both signed agreements with their current employer that prevent them from being able to engage in similar business.

The contract was signed and dated when Mason and Shepherd started at their companies. By signing the contract the two of them are not able to engage in any unfair trades or similar business while being employed. If they are found to engage is any acts that violate the employee/employer contracts there could be serious legal issue for Sheila and Craig. There are many visible legal issues surrounding the case. Sheila and Craig both appear to be participating in illegal business practices. Throughout the case, Sheila questions whether or not she should contact the COO of her company or continue to keep things on the quiet side.

Her guilty conscience is a strong indicator that she is doing something illegal that she should not be doing. From the beginning she should have approached ATS and discussed her possible business venture. She could have left out the exact details and still obtained an answer and went from there. The contracts that were signed specifically state that Sheila and Craig are engaging in activities that they should not be engaging in. Sheila and Craig should quit sneaking around because eventually the business venture will become out of hand.

The more secretive they act the more illegal the software development becomes. The contract prevents Shelia from using business partners of ATS for her own personal use or business. This is important because it can take away from ATS. Business ethics are also a concern for Sheila and Craig. Sneaking around and keeping quiet is an unethical business practice. Transferring business information from a work computer to a personal computer shows that there is something being hidden. Hiding data is unethical if you are doing something wrong.

This leads them to be guiltier. To become more ethical the two of them should come right out with their employers and let them know from the very beginning. As far as it is known, some of the new software could have come from ideas in their previous company’s software. There has to be another reason why they are keeping so secretive. If they were truly unsure of what they were doing is wrong, they should have sought out help right from the beginning. If the two of them are going to continue to go full throttle with software development it is only ethical that they properly terminate their employment.

Proper termination can lead to less legal issues and less looking so guilty. Since they waited so long to go through with the termination they have caused themselves more legal issues then if they would have quit from the start. 2) Evaluate the non-disclosure agreement and its potential impact on venture capitalists considering an investment. Is it reasonable to expect them to sign such an agreement? When dealing with new business that may be stepping on the toes of other business’ it is important to think about legal issues that may arise from the business.

Sheila and Craig have already made unethical business decisions and went behind the back of their employers. The need to sign an agreement can be reasonable but does not mean that the contract will be honored. Since there is so much illegal business activity going on a contract agreement means nothing. The venture capitalist will not receive anything more or less from signing the agreement. Anyone with good business ethics would sign and honor the agreement to prevent information from getting into the wrong hands.

It is reasonable to expect the signing of such a contract. 3) Do Mason and Shepherd need a lawyer? How should they select one? At this point in the business venture it is important that Sheila and Craig obtain a lawyer. A lawyer can help them discuss any actions that they could have done to violate the contract they have with their employers. A lawyer will be able to go over the steps that they have taken from the very beginning of first thoughts for the business. Certain issues a lawyer can help determine is the legality surrounding meeting with VC’s, development and being discreet with information.

All of these issue’s are unethical and a possible violation of contract and need to be handled by a lawyer to prevent possible criminal charges. The two of them need to be very careful while choosing a lawyer. They need to choose a lawyer that is not affiliated with their employers, venture capitalist or other related persons. The lawyer needs to specialize in employee contracts and employee rights. A good lawyer that knows business law will be the best decision for Sheila and Craig.