Eddie Liu committed the theft to satisfy his selfish needs, but in the process, all parties concerned had to bear the consequences. First, Lee and Li’s reputation was seriously affected in Taiwan and abroad. The firm’s core principles of excellence in quality and client service were jeopardized since Liu used Sandisk’s shares to perpetuate the fraud. Prospective clients might find it difficult to trust the firm and would prefer taking their business elsewhere. Besides losing important clients, Lee and Li would have to make extra effort to restore its tarnished image. Second, apart from the fact that Lee and Li had no insurance to cover the embezzlement, partners in Taiwan shared unlimited liability. Therefore, lawyers like Paul Hsu, C.V Chen and Kwan-Tao Li were more vulnerable in this situation: they faced the possibility of loosing all of their possessions and professional livelihood. Third, Lee and Li could face bankruptcy and might be forced to close down. Consequently, lawyers and staff working at the firm would lose their jobs and would not be able to provide for their families until they found another job. After being informed about the embezzlement, Lee and Li should take corrective decisions and act quickly to ensure that the firm survives. Since news of the fraud hadn’t made the headlines yet, senior partners should first try to handle the situation internally. In this scenario, it is crucial that they are surrounded by highly-trusted people to help bring the firm back on track. Paul Hsu, Chen and Li should send a trusted person or a third party to Hong Kong in an attempt to find Liu or to see whether the diamonds and the travelers’ checks could be found. The second step should be to empower a team of existing employees to review the firm’s internal control system to determine how Liu could have committed such a crime. Chapter 7 in the textbook, talks about the importance of empowering employees in such situations. Entrusting people in the organization with such a high-sensitive responsibility would prove to employees that the firm still believed in them, even if Lee and Li suffered great loss in trusting Liu. Hence, the processes of the system could be checked and appropriate adjustments made to tighten the control system. The third step should be to share the horrific news with other partners and staff. The senior partners should ensure that everyone was aware of what had happened and reassure them that steps were being taken to handle the crisis. Chapter 2 outlines the need to build trust between leaders and group members in such cases. In order to curb any distrust and suspicion during the firm’s revival, employees should be informed about the current status of investigations. Moreover, they should be included in any relevant effort so that they feel respected and part of the firm like before. The fourth step would be to inform Sandisk that Liu had embezzled $120.3 million of Sandisk’s shares owned in UMC and took off with NT$3 billion. Sandisk would recognize Lee and Li’s integrity because the latter owned up to its mistakes and understood that sandisk had a responsibility towards its shareholders to report the lost shares. Here, both firms should adopt the compromise style, discussed in chapter 12 of the textbook. On one hand, Lee and Li did not have the means to compensate for the huge loss and on the other hand, Sandisk had to recover as much money as possible to decrease its loss. The two firms should collaborate and reach a settlement agreement in an attempt to make this situation a less painful one. The fifth step should be to contact all of the 12,000 clients to let them know of Lui’s malfeasance. In addition, senior partners should clearly describe how Lee and Li intended to deal with the crisis. Despite the fact that this news might imperil the firm’s relationship with its clients, the latter would appreciate that Lee and Li took full responsibility of its employee’s mistake and didn’t hide anything from them. As a consequence, clients might perceive Lee and Li as an ethical and trustworthy firm, in spite of Liu’s wrongdoing. The sixth and final step would be to hold a press conference to describe what had happened. Lee and Li should clearly stress on the fact that Sandisk and all other stakeholders had been informed. Lee and Li should be the one to share this news with the media and clearly articulate its course of action to eliminate any speculations from competitors. In conclusion, Lee and Li should prove that it can honor its commitment to society in difficult times. By following the above-mentioned steps, it can reinforce its motto: “we care, we serve, we excel”. Furthermore, Sandisk and other clients would see that Lee and Li could be trusted and would not abandon the firm.