The Ethics of Whistle-Blowing

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xmnj2004

Business Finance

Description

The Ethics of Whistle-Blowing

Introduction and Alignment

What do you do when you become aware of an ethical lapse on the part of your organization? Increasingly, the answer is to call the whistle-blowing hotline and collect on the reward offered to those who provide tips that result in successful prosecution. However, what if the organization itself is not aware of the issue because it results from the malfeasance of an individual? What is the ethical action to take then? What if it is not clear if the ethical lapse is illegal? This assignment will prepare you to answer these questions should you be faced with the issue of whistle blowing in the future.

Upon completion of this assignment, you should be able to:

  • Evaluate ethical responses to potential whistle-blowing situations.
  • Examine challenges faced by leaders in crises.

Resources

  • Textbook: Meeting the Ethical Challenges of Leadership
  • File: Chapter 11.ppt

Background Information

Partially as a result of the actions of Enron, Adelphia Cable, and other companies, federal regulators have been promoting rewards to those who report ethical wrong-doing by their organizations; those who do so are called whistle blowers. Whistle blowing has many challenges, both ethical and operational. A review of recent cases of reported whistle blowing show that fewer than 10% of reported charges result in successful prosecution; those individuals who made the charge are often fired and occasionally black balled within the industry. Whistle blowers often violate confidentially agreements and loyalty, and sever relationships. Additionally, whistle blowing can lead to negative consequences for many who had no knowledge or participation in the ethical violation.

What is the ethical manager to do when faced with a possible violation? This assignment will help prepare you for such a situation.

Instructions

  1. Download and review the PowerPoint presentation, Chapter 11.ppt.
  2. Read Chapter 11 in the textbook Meeting the Ethical Challenges of Leadership. As you read, think about the types of crises that organizations face and ethical issues that may occur as a result of these crises.
  3. Review "Blowing the Whistle: Ethical Tension Points" on pp. 437-438 in the text.
  4. Conduct a search using the Off Campus Library Service for one incident of employee whistle blowing that resulted in a successful prosecution and payment of a reward to the whistle blower.
  5. Navigate to the threaded discussion and respond to the following:
    1. Evaluate the instance of employee whistle blowing identified in the article you found using the ethical decision models identified in assignments 4.2 and 5.3 of this course.
      1. Based on this evaluation, was whistle blowing the appropriate ethical action?
      2. Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
    2. Determine what the likely positive and negative outcomes of the whistle blowing for society, the organization being reported, the customers and employees of the organization, and the whistle blower.
      1. Given these outcomes, was the reward to the whistle blower fair and equitable?
      2. Provide a detailed defense of your position that demonstrates clear, insightful critical thinking.
  6. Your initial post should be 200 to 300 words in length and include two academic resources that are properly cited.
  7. Your initial post is due by the end of the fourth day of the workshop.
  8. Read and conduct a critical analysis of postings by two of your classmates by the end of the workshop.
    1. The topic of your discussion response should be your classmate's posting and should be written as if you were reviewing his or her posting in an academic journal. Your discussion response should therefore answer the following questions as applicable:
      1. Were the arguments of your classmate articulate and logical? Were the facts correct?
      2. Was the interpretation your classmate provided reasonable and consistent with experts in the field? Was your classmate consistent with both the substance and intent of his/her references?
    2. The focus for your critical analysis is not whether or not you agree with your classmate, but how well his/her position was presented.
    3. Each response should be at least 200 words in length and cite two academic sources. (Note: the academic sources do not count towards the word length requirement.)
    4. Respond to the following:
      1. Evaluate the instance of employee whistle blowing identified in the article you found using the ethical decision models identified in assignments 4.2 and 5.3 of this course.
        1. Based on this evaluation, was whistle blowing the appropriate ethical action?
        2. Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
      2. Determine what the likely positive and negative outcomes of the whistle blowing for society, the organization being reported, the customers and employees of the organization, and the whistle blower.
        1. Given these outcomes, was the reward to the whistle blower fair and equitable?
        2. Provide a detailed defense of your position that demonstrates clear, insightful critical thinking.
        3. 6.3 Ethical Communication in Crisis

          Introduction and Alignment

          Crises provide serious tests of ethical leadership. It is easy for most leaders to do the right thing during days filled with routine, but even the least complicated task grows increasingly difficult in a crisis, and leadership often fails during these times. The textbooks (and the news) are full of such examples. Studying these examples will help prepare you to make the ethical decision when you find yourself faced with a crisis.Upon completion of this assignment, you should be able to:
          • Select the appropriate and ethical response to a crisis.

          Resources

          • Bible
          • Textbook: Meeting the Ethical Challenges of Leadership

          Background Information

          In Romans 12:2 (New International Version), you are told: “Do not conform any longer to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is – His good, pleasing and perfect will.” Though it is not likely that Paul anticipated social media sites such as Facebook, it is clear that God did. Paul, however, experienced many of the same challenges you face with today’s media, just at a different pace. In this study, we will examine potential responses to organizational crises catalyzed by social media.

          Instructions

          1. Review Chapter 11 in the textbook Meeting the Ethical Challenges of Leadership. As you review, think about how news about a crisis is communicated, and how the failure to response to news of a crisis can make the crises even worse.
          2. Read Case Study 11.2 on pp. 445-447.
          3. Navigate to the threaded discussion and respond to the following:
            1. How would you evaluate the crisis response of Southern Cross Austereo based on the five components of ethical crises leadership presented in the chapter? Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
            2. What steps should Southern Cross Austereo take to restore the firm's reputation and that of station 2Day FM? Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
          4. Your initial post should be 200 to 300 words in length and include two academic resources that are properly cited.
          5. Your initial post is due by the end of the fourth day of the workshop.
          6. Read and conduct a critical analysis of a posting by two of your classmates by the end of the workshop.
            1. The topic of your discussion response should be your classmate’s posting and should be written as if you were reviewing his or her posting in an academic journal. Your discussion response should therefore answer the following questions as applicable:
              1. Were the arguments of your classmate articulate and logical? Were the facts correct?
              2. Was the interpretation your classmate provided reasonable and consistent with experts in the field? Was your classmate consistent with both the substance and intent of his/her references?
            2. The focus for your critical analysis is not whether or not you agree with your classmate, but how well his/her position was presented.
            3. Each response should be at least 200 words in length and cite two academic sources. (Note: the academic sources do not count towards the word length requirement.)
            4. Respond to the following:
              1. How would you evaluate the crisis response of Southern Cross Austereo based on the five components of ethical crises leadership presented in the chapter? Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
              2. What steps should Southern Cross Austereo take to restore the firm's reputation and that of station 2Day FM? Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
              3. 6.4 Personal Ethical Framework

                Introduction and Alignment

                Perhaps the most noteworthy case of corporate fraud in the United States was Enron. Only after the collapse of Enron did the full magnitude of the corruption and ethical misconduct become known. Yet another lesson learned from Enron is that the corruption and ethical misconduct did not develop overnight, but as a result of many actions and decisions that created a culture where profitability was more important than ethics. Scholars have concluded that the ethical collapse of Enron came as a result of a culture that slowly chipped away at the ethical standards of employees until almost any action could be justified. The most potent defense against this erosion of ethics is a robust, pre-determined ethical framework for personal decisions. This assignment will lead you through the process of establishing your personal framework for ethical decisions.Upon completion of this assignment, you should be able to:
                • Evaluate one's personal ethical standards and create a personal/professional framework to guide decision making compatible with a Christian worldview.
                • Synthesize the interrelatedness of biblical principles and the ethical and legal fabrics in American society.

                Resources

                • Video: A Conversation About the Documentary "Enron: The Smartest Guys in the Room"

                Background Information

                Jesus often taught with parables. A parable is a story, usually shared verbally, that uses an image or story to illustrate a truth and defines the unknown by using the known. Parables help the listener to discover the deeper meaning and underlying truth of the reality being portrayed. An example of a business-related parable can be found in Luke 16:1-12, where a business man conducted a test of three of his employees. The collapse of Enron was vividly described in the documentary “Enron: The Smartest Guys in the Room.” Although the documentary is not available to view in class, it is available for you to watch as a private individual. Be aware that it contains both profanity and nudity.The documentary sparked a great deal of conversation over its message, as you will hear in the YouTube video. In this video, you will see an interview with the movie’s producer and the author of the book by the same name discussing the underlying causes and issues involved in the Enron collapse.

                Instructions

                1. Watch the video "A Conversation About the Documentary 'Enron: The Smartest Guys in the Room'" at http://www.youtube.com/watch?v=PNIooXEeVu4.
                2. As you watch, make note of how the Enron culture applied a constant pressure on employees to compromise on their principles.
                3. Write a 1200- to 1400-word research paper that addresses the following issues:
                  1. What factors led to the development of the culture of profit before principle at Enron? Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
                  2. Create a personal code of ethics that will guide you in professional and personal decision making. The code should address behavior in the following areas (as a minimum):
                    1. Relationships
                    2. Honesty and integrity
                    3. Work ethics
                    4. Transparency and disclosure of information
                    5. Fairness
                  3. For each element of your code, justify your principle by linking it to a concept articulated in the secular or biblical ethical frameworks presented in this class. Provide a detailed evaluation that demonstrates clear, insightful critical thinking.
                4. Support your positions with at least six references from scholarly sources.
                5. Use proper spelling, grammar, and APA formatting for your analysis paper. (Note: cover pages, academic sources, reference pages, etc. do not count towards the word length requirement in your paper.)
                6. When you have completed your assignment, save a copy for yourself and submit a copy to your instructor using the Dropbox by the end of the workshop (Turnitin will be enabled).

Unformatted Attachment Preview

Chapter 11. Ethical Crisis Leadership  Crisis: An Overview    A crisis is any major unanticipated event that poses a significant threat. Such events are rare (making them difficult to prepare for), they generate a good deal of uncertainty (their causes and effects are unclear), and they are hard to resolve (there is no set formula for determining how to act). Decisions about how to deal with the crisis need to be handled quickly. Crisis: An Overview  Crisis management experts Matthew Seeger, Timothy Sellnow, and Robert Ulmer identify ten types of crisis.      1. Public perception 2. Natural disasters 3. Product or service 4. Terrorist attacks 5. Economic Crisis: An Overview  10 Types of Crisis (cont’d)      6. Human resource 7. Industrial 8. Oil and chemical spills 9. Transportation 10. Outside environment The 3 Stages of a Crisis  Stage 1. Precrisis    Precrisis is the period of normalcy between crisis events. During this, the longest phase, the group or organization typically believes that it understands the risks it faces and can handle any contingency that arises. Crisis management experts offer a variety of strategies for recognizing danger signs.     1. environmental scanning (looking outward to the media and larger environment and inward to the organization for potential problems) 2. brainstorming potential weaknesses 3. creating a crisis management plan for dealing with likely risks 4. establishing a reputation for integrity or credibility that will serve as a reservoir of goodwill when a crisis strikes The 3 Stages of a Crisis  Stage 2: Crisis Event The second stage commences with a “trigger event.”  It ends when the crisis is resolved.  Ethical leaders play a critical role during this stage.  Leaders are also responsible for speaking on behalf of the organization.  Those directly impacted by the crisis have particularly important information needs and should take top priority.  The 3 Stages of a Crisis  Stage 3: Postcrisis  Investigation and analysis take place during the third and final stage.  This is also a period of recovery where ethical leaders try to salvage the legitimacy of the group or organization, help group members learn from the crisis experience, and promote healing.  Organizational crisis learning takes three forms. Retrospective sensemaking  Reconsidering structure  Vicarious learning  Components of Ethical Crisis Management  Assume Broad Responsibility    Responsibility is the foundation of ethical crisis leadership. Preventing, managing, and recovering from crises all depend on the willingness of leaders and followers to accept their moral responsibilities. In addition to engaging in, and fostering, ethical behavior, the responsible crisis leader fights against complacency, human biases, institutional weaknesses, special-interest groups, and other obstacles to crisis prevention. Components of Ethical Crisis Management  Practice Transparency     Like responsibility, transparency is another requirement placed on groups and organizations operating freely in society. Failure to disclose information spawns abuses of power and privilege and makes it impossible for individuals to act as informed members of the community. Transparency begins with openness. Transparency also involves symmetry. Practice Transparency  Maintaining transparency is particularly difficult when a crisis is triggered.  First, there are privacy concerns.  Second, admitting fault can put the organization at a disadvantage in case of a lawsuit.  Third, there may be proprietary information about, say, manufacturing processes and recipes, which should not be released to competitors.  Fourth, uncertainty makes it difficult for an organization to determine what its course of action should be, and, as a result, to communicate concrete details to the public.  Fifth, being specific may offend some stakeholders who feel that they have been treated unfairly.  Sixth, making a commitment to a single course of action too soon may limit the group’s ability to deal with the crisis. Practice Transparency  Some observers suggest that leaders in a crisis situation use strategic ambiguity as an alternative to transparency. In strategic ambiguity, communicators are deliberately vague, which allows them to appeal to multiple audiences.  More often than not, however, strategic ambiguity is unethical, used to shift the blame and to confuse stakeholders while providing them with biased and/ or incomplete information.  While the amount and type of information to be shared will vary with each crisis, the goal should always be to be as open as possible. Practice Transparency  In order to be ethical, the group’s explanation of events and response to public criticism must have the right manner and content.  Manner refers to the form of the communication, which needs to:  (1) be truthful  (2) be sincere  (3) be timely  (4) be voluntary  (5) address all stakeholders  (6) be in the proper context Practice Transparency  The content of the message is just as important as the form it takes. The ethical story of events:  clearly acknowledges wrongdoing;  accepts full responsibility for what happened;  expresses regret for the offense, the harm done, and failure to carry out responsibilities;  identifies with the injured  asks for forgiveness;  seeks reconciliation with injured parties;  fully discloses information related to the offense;  offers to carry out appropriate corrective action; and  offers appropriate compensation. Demonstrate Care  Demonstrating concern has practical as well as ethical benefits.  While it is in the interest of leaders and organizations to act in a compassionate manner for image and financial reasons, it is even more important to do so for ethical reasons.  i.e. Altruism  Showing concern during a crisis goes well beyond addressing the physical and financial needs of victims.  Emotional and spiritual needs as well Engage the Head as Well as the Heart  Rational thought, problem solving, and other cognitive skills and strategies are important complements to care and compassion in ethical crisis management.  Moral leaders respond with their heads as well as their hearts.  Ethical crisis leaders, in addition to paying heedful attention themselves create mindful cultures. Engage the Head as Well as the Heart  Aircraft carrier example  Navy leaders encourage five mindful practices:  Carrier crews are preoccupied with failure.  Those who work on carriers are reluctant to simplify.  Third, carrier crews sustain continuous sensitivity to operations.  Fourth, people on carriers share a commitment to resilience.  Fifth, carrier personnel demonstrate deference to expertise. Engage the Heart as Well as the Head  Leaders responding to crises also need to employ ethical rationality.  Rationality is defined as “a firm’s ability to make decisions based on comprehensive information and analysis.”  Ethical rationality serves firms well in crisis management. Ethically rational companies (and nonprofits) are more likely to make sound moral choices during a crisis because leaders are in the practice of incorporating ethical principles into routine decision making. Improvise From a Strong Moral Foundation  The ability to ethically improvise is critical in a crisis because no amount of planning and practice can totally equip individuals for the specific challenges they will face during the crisis event.  Successful improvisation requires that employees be empowered to act on their own initiative.
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Running head: THE ETHICS OF WHISTLE-BLOWING

The Ethics of Whistle-Blowing
Name
Institution

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THE ETHICS OF WHISTLE-BLOWING

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Instance of an Employee Whistle-Blowing
In an example of a successful whistle-blowing incident, a company known as
Dermatology Healthcare was required to pay four million dollars for healthcare fraud allegations,
which infringes the False Claims Act. The company submitted false information so that they
would be paid millions of dollars in the reimbursement of Medicaid and Medicare, for nonmelanoma skin cancer treatment. This treatment requires the administration of superficial
radiation therapy, whose equipment’s are very expensive. According to the allegation, there was
poor supervision of the therapy and also, ...


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