A real estate company in a highly competitive market in Pakistan was the recent victim of employee theft. A fraudulent bank transaction had occurred, which risked the firm’s smooth functioning and future operations, as well as customer confidence. The company had suspicions about an employee who might have been involved in the theft, but the CEO was facing the dilemma of whether to fire him or not. The employee was the only one who could operate the company’s complex financial software. If the CEO decided to replace the employee based on his suspicion, he would be facing major replacement and training costs, and also causing a delay in the company’s upcoming mega project. However, if he did not fire him, it would mean that the company was tolerant of such acts, which could lead to future corruption.

A real estate company in a highly competitive market in Pakistan was the recent victim of employee theft. A fraudulent bank transaction had occurred, which risked the firm's smooth functioning and future operations, as well as customer confidence. The company had suspicions about an employee who might have been involved in the theft, but the CEO was facing the dilemma of whether to fire him or not. The employee was the only one who could operate the company's complex financial software. If the CEO decided to replace the employee based on his suspicion, he would be facing major replacement and training costs, and also causing a delay in the company's upcoming mega project. However, if he did not fire him, it would mean that the company was tolerant of such acts, which could lead to future corruption.