He should also say that he hopes this does not affect their relationship and hopes that UWEAR and the Peninsula Hotel chain continue to work together well into next year. The ethical theory that supports how Joe should respond to this invitation is virtue theory. Virtue theory is when an individual tries to be the kind of person he or she should be (Ethics, 2001). Joe should use virtue theory because in this situation his management team would likely learn about the friendship between Joe and Bill and expect Joe to make an ethical decision. Furthermore, Joe realizes that not only his future with UWEAR but also his friendship with Bill is affected by the contract. Declining the invitation until a contract decision is made will demonstrate that Joe has the courage and wisdom to do so