1. According to the given case study, there is a presence of ethical dilemma. As the Head of the IT security Jill had previously fired Harry for providing assistance on internet regarding his newly made antivirus program under the name of Locksmith. Jill told Harry not to publish that program as she thought that it might emerge as potentially dangerous software. After that, the owner of the organization found about the works of Locksmith on the internet and ordered his subordinates to recruit the man who is behind the name of Locksmith [1]. In this case, as Harry was the one behind the name of Locksmith there was an ethical dilemma in recruiting him back for the organization.

2. This situation according to the given case study states that the situation is an appropriate example of an ethical dilemma within a business organization. It is seen that the models and theories related to this issue, and those are theories of consequentialism, rights and duties, categorical imperative and many more. These theories clearly states that the situation is truly under an ethical dilemma whether he should be called in again or not. Along with it there was another problem, as the Security manager thought that the software Harry made was dangerous for the organization, and on the other hand the owner of the organization thought that it would have been beneficial for the organization[2]. 

References

Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, 2016.

Trevino, Linda K., and Katherine A. Nelson. Managing business ethics: Straight talk about how to do it right. John Wiley & Sons, 2016.