Business Ethics Question

[Buckley99]

1. I can't tell if the OP owns the company he works for our if he is an employee of the company he works for

2. OP and the person that owns the biz that has the employee that's about to jump ship aren't friends. They simply know each other and do business together.
If they were FRIENDS this post would have not been made because it would be a no brainer. Friends = Brothers to me. Would I tell my brother that one of his employees was about to steal some of his clients and hang his own single????

3. What the employee is doing happens all day every day. You realize how many Google employees have got on their team to learn as much as possible only to leave a few years later and start their own company in direct competition with Google.

It's common.

1. I do not own the company.

2. Our definition of friends is different and that is not a insult to me. I have many friends and only a handful of "brothers". That said, my friendship with the business owner is strong but I also value my employee (who I hired).

3. While I appreciate your feedback, I can assure you this is not as easy of a call as you suggest. I was trying not to write a chapter's worth in my original post but to add a wrinkle to this scenario, the employee that told me was hired about 6 months ago. However, I have known the employee for almost 10 years because their spouse is one of our largest customers/suppliers. The spouse is also a "brother".

[Buckley99]

Call him and not only tell him what is going on but tell him your concerns with how Tom may react to this. If handled correctly Tom will never know you are the one who outed Bill. I have been involved in this very thing and no one ever knew how the boss found out. I can guarantee you Bill has told more than one person his plans. That is just how those people are. He will never know how the info got back to his boss.

I think this is how this will play out. I told him the whole situation and why I was trying to do right by him and my employee. He said he completely understood and ensured me that the employee's name would never come up.

[Buckley99]

Did the customer have his employees sign a non compete ?

Not sure. Unfortunately, in our industry (and maybe others as well) NCAs are signed and broken all the time. Most of the sales people in our industry have worked for 3+ competitors.

[Charles]

Not sure. Unfortunately, in our industry (and maybe others as well) NCAs are signed and broken all the time. Most of the sales people in our industry have worked for 3+ competitors.

NCAs aren't really enforceable. Even if they are they probably won't hold up in court. Texas is a right to work State.

A Non Solicitation agreement on the other hand has more teeth than an NCA.

[grizzman]

Anonymous tip?

[texansfan]

1. I do not own the company.

2. Our definition of friends is different and that is not a insult to me. I have many friends and only a handful of "brothers". That said, my friendship with the business owner is strong but I also value my employee (who I hired).

In that case, I would have protected homebase (the trust of my employee) and not said a thing.

Because now you could have a cancer in your own company that your employee will know about but won't tell you because you've already burned the employee in the past.

I don't trust people that I confide in that run and tell what I confided in them. No matter whom it effects.

[texansfan]

NCAs aren't really enforceable. Even if they are they probably won't hold up in court. Texas is a right to work State.

A Non Solicitation agreement on the other hand has more teeth than an NCA.

Set the business up in my wife's name and I'm good to go!!!

[Ætheling]

Why cant you let the guy know without divulging your source?

[Charles]

Set the business up in my wife's name and I'm good to go!!!

How so?

[Buckley99]

Why cant you let the guy know without divulging your source?

I could have but I felt that it was better to tell him what happened and why it put me in a tough spot. We both share the same core beliefs and I think he understood why I was uncomfortable sharing something that I was told in confidence.

[Charles]

I could have but I felt that it was better to tell him what happened and why it put me in a tough spot. We both share the same core beliefs and I think he understood why I was uncomfortable sharing something that I was told in confidence.

Why did your employee feel the need to tell you?

[texansfan]

How so?

Because I signed the NCA
Not my wife
I dont own the new company nor have anything to do with it
It's my wife's (or my cousin's)

[Buckley99]

Why did your employee feel the need to tell you?

Not sure.

[sotx]

I'd give your customer a heads up. If he finds out later that you knew and didn't tell him he probably won't be your customer anymore. The guy is a thief stealing someone else's business.

this

[bdchorn]

My gut is telling me to call my customer because I think he would call me if the roles were reversed. However, I believe my employee told me in confidence not knowing the relationship.

Call your customer. Explain your obvious loyalty to him but also explain the loyalty and sensitivity of your relationship with your employee. Trust that he handles things properly and keeps your name and the actual marketing material out of it.

I'd bet dollars to donuts the guy has something related to the new company on his desk or his work computer. In any event, there are certainly other ways your customer could have found out about this and if he values your relationship as much as you do, then he will handle things accordingly.

If he doesn't, then screw him. He wasn't worth all the worrying in the first place