Bob, the owner of Orthopedic Supply, just discovered that his trusted friend Ruth, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Bob must decide whether to ignore his friend's actions and avoid bad publicity for Orthopedic Supply, or to have Ruth arested for embezzlement. Bob is facing: a) a whistle-blower. b) a moral courage decision c) an issue of corporate governance. d) a social audit e) an ethical dilemma.

E) an ethical dilemma.

Explanation:

An ethical dilemma is a situation where a person must face a decision where both alternatives are really bad choices. No option will provide a positive resolution to the current situation, but the person must decide between one of them.

In this case, if Bob goes to the police, his friend will be arrested but that will generate bad publicity for his business. If Bob decides not to go to the police, Ruth will continue to steal money form him. It's like being between a rock and a hard place, whatever your decision, you are still going to be hurt.