My departmental head is lunching with a competitor and I am worried because he has asked me to prepare some reports that are blatantly out of context. I have concluded that we are about to merge, or he is going to jump ship and is leaking confidential information. I want to make sure that my back is covered if he is going, but alternatively, if we are merging he could end up still being my boss. What should I do?

This is a classic ethical dilemma in business. It's all about trust, intention and transparency - and a potential conflict with commercial confidentiality, which, if broken, could have a significant impact on an external reputation in the marketplace. There is no obvious way forward, but a careful process of evaluation should help you to come to the right course of action.

Start with the horse's mouth

As part of preparing the papers you have been asked for, arrange a meeting with your departmental head to ensure that you are properly briefed. Ask directly for the context of the meeting: is it an information-sharing meeting, a chance to catch up on industry issues, etc? Ask why these reports are necessary, so that you can ensure that they contain the appropriate material. Assess the answers carefully. Do they sound plausible? If you are told “I can't tell you”, then ask if this person is doing this at the request of others and, if so, who. Here, you have to use your judgment, but take notes throughout the briefing and then write them up on a file note and save this.

Check for transparency

Take steps to check how transparent this meeting is to the organisation. It should not be too difficult to see what is in the diary and how openly it is recorded. Unless you have been sworn to secrecy, find out how many other people in the team know about this meeting and what it is for. At this stage you have to make a judgment.

It may well be that this is a perfectly routine discussion and the reports are good background reading to ensure that the maximum benefit can be extracted from such a meeting. If so, keep your counsel and keep your file note, just in case.

If you are concerned after this discussion, then there are two things you could do.

First, in all the reports that you are preparing, make sure that you indicate where any material you have prepared is commercially sensitive and inappropriate for sharing with a competitor.

Second, consult your business's code of conduct or disciplinary policy as to how to raise a concern.

Act with care

It is always best to challenge directly and openly. If, after a challenge raising concerns about these reports you are not convinced by your departmental head, then go to the boss higher up. A good organisation will then reassure you, allowing you to complete the work, or deal with the issue.

If you are worried that you may suffer as a result, then use the whistleblowing policy, if one exists. This is difficult territory and in my experience a direct discussion is always best: don't start by assuming the worst; and never act on hearsay.

Professor Bones is Dean of Henley Business School.

Send in your questions to businessfeatures@thetimes.co.uk

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