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Business 303 Sheppard

Business 303 Sheppard. Business Society & Ethics, Week 9: Breakdown in the firm: Whistleblowing. BUSINESS ETHICS WEEK 10: MAIN QUESTIONS. How does our notions of loyalty impact our likelihood of blowing the whistle? What is loyalty? Can one be loyal to a corporation?

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Business 303 Sheppard

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  1. Business 303 Sheppard Business Society & Ethics, Week 9: Breakdown in the firm: Whistleblowing

  2. BUSINESS ETHICS WEEK 10: MAIN QUESTIONS • How does our notions of loyalty impact our likelihood of blowing the whistle? • What is loyalty? • Can one be loyal to a corporation? • What is whistleblowing? • When should one blow the whistle? • What are the consequences of blowing the whistle? Wk. 9-2

  3. 1. Is the workplace Private? • Rights of Employers • Libertarian At-will employment • Managerial Employee loyalty • Stakeholder Benefits of productivity • Rights of Employees • Libertarian At-will employment • Managerial Proper Agents Actions • Stakeholder Public protection Wk. 9-3

  4. 2a. What’s the problem? Loyalty? What is Loyalty? A voluntary duty Seen as owed to another. A passion (Neither virtue nor vice) We may have multiple loyalties The trick is to balance them with some degree of integrity in reality [424]. The loyal opposition [418] Loyalty is not blind trust Wk. 9-4

  5. 2b. Types of Loyalty (1 of 2) Idealist account [414] A cause to be loyal to Willing & thoroughly devoted Expresses devotion in a Sustained & practical way Common Sense Conception [415] Viewing something as ‘Mine’ Positive attitude; you ‘care about’ it. Obliged to serve the interests of it. Personal relationship. Wk. 9-5

  6. 2b. Types of Loyalty (2 of 2) Loyalties as norms [418] Loyalty to a community or those in it; Thus loyal to the norms they hold dear. Minimalist Account [419] Restatement of the Law of Agency May act against principle’s interests to protect their own or others. E.g. can reveal info acquired for protection of a superior interest of himself or another No obligation to do illegal / unethical acts. May act in good faith outside employment even if it hurts principle.

  7. 2c. Loyalty to the Company [409] Companies aren’t the kind of things properly the objects of loyalty. You can be loyal to individuals (co-workers or bosses) but not an entity. Their goal is not human fulfillment but a profitable arrangement (Duska) For you & it to perform its econ. function both must be self-interested Do we expect devotion as on P.415. Changing Jobs? (Case 11-3 [429])

  8. 2d. Blind & EarnedLoyalty [417] Solomon & Martin’s ‘New Loyalty’ Values & Standards Clearly defined & challenging Clear Expectations Forthright in expectations Frequent Feedback On where one stands Respect for the Individual Trust & consistency Long-Term Commitments Hard with downsizing Wk. 9-8

  9. 3a. What is Whistleblowing? (1 of 3) A action involving dissent. Must lose an argument with the Corp. Breach of Loyalty: How can this be minimized? Effective search of other alternatives; Particularly internal ones if time allows. Accusation: Free from a desire for Self defense / Revenge Aggrandizement Personal gain http://www.chameleon-translations.com/sample-Zola.shtml http://www.law.uga.edu/academics/profiles/dwilkes_more/his9_jaccuse.html

  10. 3a. What is Whistleblowing? (2 of 3) Serious act committed in the firm. Info. one has been entrusted with that is not ordinarily revealed. [403] A threat [399]: Present or imminent; Specific & concrete. Affecting the public [401, 404]: Capable of articulation; Not lurid or malicious / Not erroneous or otherwise private.

  11. 3a. What is Whistleblowing? (3 of 3) Prevention of harm [404] Public’s right to know [401] Not private matters Matter of public record ‘Neither referee nor coach’ [398] Wk. 9-11

  12. 3b. Types of Whistleblowing • Current & Alumni • Private & Public • Group & Individual 3c. Legal Status of Whistleblowing • Need to exhaust internal procedures (as time & power allow) • Your complicity in actions that may contribute to a wrong [406] Wk. 9-12

  13. 4. Why do people Whistleblow? • Motives & Results • Preventing harm? • Exposing wrong-doing (Challenger)? • Creating change in decision systems? 5a. What stops people from Whistleblowing? • Misplaced sense of Loyalty • Costs & Complicity [405-6] • See neutralization below. Wk. 9-13

  14. 5b. Public Opinion & Whistleblowing Producing an image. Jeff Wigand & big Tobacco [397]. Erin Brockovich [397]? Watkins at Enron [426-27]. Is the public informed? Wk. 9-14

  15. 5c.Whistleblowers get Neutralized. • Corporation may: • Make the whistleblower the issue; • Isolate the whistleblower; • Destabilize whistleblower’s support; • Eliminate the whistleblower's job; • Prosecute the whistleblower; • Bring experts to counter whistleblower; • Make token & delayed actions to fix the problem. Wk. 9-15

  16. 6. Stages of Whistleblowing (1 of 2) Discovery The importance of facts & documents The A-7-D Aircraft Brake Decision (best to Seek advice [402]) Chose to either: Comply with norms / maintain status quo Refuse to comply / Whistleblow

  17. 6. Stages of Whistleblowing (2 of 2) Action Who to report to / Outlets? Internal Know the chain of command External Regulators / Agencies Customers Media Assessment Did you have an impact? Results How far to pursue? Wk. 9-17

  18. 7. How to Whistleblow? • Group vs. individual • Anonymous vs . self-identified • Formal vs. informal documentation • Exit: symbolically or pre-retaliation 8a. Exercise Questions: • Should I blow the whistle? • Should I do it privately or publicly? Wk. 9-18

  19. Three Stories on Page 400 Construction contracts Engineers University Admissions Self whistleblowing (Case 11-2 [428]) Greenhouse Effect (Case 11-4 [430]) Phone Company (Case 11-5 [431]) 8b. Exercises: • Lower Salford Sewer Authority Wk. 9-19

  20. B y e B y e

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