Question

A friend asked for your advice. He said that he worked for a public company in the financial department. He knows that the company violated labor wage laws and under-reported wages to save money on required payments for workers’ compensation insurance. He believes they may have committed other financial improprieties but doesn’t have direct knowledge. He feels he helped perpetrated a fraud and may have himself engaged in unlawful conduct. He feels particularly aggrieved because he says he always is very careful to complete his tax returns in a completely honest manner. He wants to know if he ethically should report this information to either the internal hotline or to governmental authorities. He is concerned that he would be identified as the source of the report and be fired. 1.Advising your friend as to how he should proceed if he wants to act ethically. You should apply the three ethical frameworks to the situation as appropriate and the ethical decision making process. I am most interested in your reasoning. 2.Assuming the company experienced these lapses by its managers and employees from time to time, what steps would your advise the company to take to (a) lessen the likelihood of managers and employees not following legal requirements and also (b) to let them know that they are expected to always “do the right thing”.

Answer 1

1) We will advise our friend to :

a: To report the unethical activities of violating the labor laws and under reporting wages to save money by the company, so that your soul and conduct towards the employees and the law of land will remain strong and without any fraud. Moreover, if company takes any kind of action towards you, then you can claim or sue the company to regain your position.

b: To report the unethical activities of violating the labor laws and under reporting wages to save money by the company, so that you able to get justice for the employees of your company. If you fight for the safety of the employees rights, then they would also fight with the company for not harming you for your ethical actions.

c: When the unethical activities of the company is brought forward in public domain for the justice of the employees of the company, then company itself takes corrective action to save its image. In such situation the company is not going to take any unethical action against you.

2) If all the unethical activities are taking place at the company’s managers and employees point, then the company will take a criminal action against the concerned employees, so that frauds must be punished. The financial penalties should be imposed to these corrupt employees towards teaching them a lesson for acting unethically towards employees. For future, the employment of these employees can be continued only if they agree to sign the bond towards act ethically and “do all the right things”.