The ethical dilemma in this scenario requires Derek to decide on whether to inform the smaller company about the extended use of the software. This would mean risking losing his job. On the other hand he can neglect the fact that the smaller firm is the rightful owner, and hence enjoy the benefits of being promoted at the larger firm (Winston and Edelbach, 2014).
Derek has an investment in this scenario. He is faced by two compromising decisions, both of which will have a profound effect on his career. This means that the ethical dilemma will have an effect