A design engineer in a major automobile-company received 2 reports concerning engine fires and 

explosions which occurred in hot weather in the company’s popular economy car. At the time the 

engine of this model was approved and released for production, the engineer advised the plant that 

he felt the carburetor and gas lines were constructed in such a way that under excessive heat 

conditions there could be a gas leak. At that time, the engineer argued for a modification which 

would have added about US $ 5000 to the cost of producing each engine, but this proposal was 

turned down. He continued to argue for the modification and for special testing, but the standard 

tests performed on the car did not indicate any danger, and the engineer was told to drop the issue. 

However, upon receiving the two reports, the engineer again pressed for special testing under 

excessive heat conditions, and urged the company to warn the public and immediately recall all 

the cars of this model. By this time however, such a recall would probably cost the company 

between US $ 0.5M and US $ 1M, and the engineer was again told to mind his own business or he 

would be fired. In the meantime, four more reports of engine fires came in from a desert area in 

the North-Eastern region. The engineer was now convinced he was right.

To what extent does he owe loyalty to the company, where he has worked for 15 years and has 

been promoted several times?