After he learned that corporate sleuths hired by a contractor for P&G had obtained confidential information by rummaging in Unilever trash bins, chairman John Pepper informed Unilever of the violation of P&G's own ethics code and promised not to make use of the information. Unilever responded by demanding cash compensation, the removal of P&G employees who had seen the information from positions in which they could use it, and the installation of an independent monitor at P&G to ensure that the information is not used.
- Is dumpster diving an ethical way of acquiring information from a competitor? If companies do not take precautions, such as shredding vital documents, why should they be protected from prying eyes? Would it make a difference if the dumpster were on private property or on a public street?
- Although John Pepper acted courageously in notifying Unilever, was his action morally required? In view of the reaction from Unilever, did he act wisely?
- Is Unilever owed any compensation? What harm has the company suffered for which they should be compensated?