CHAPTER 7 Blowing the Whistle

Transcription

1 CHAPTER 7 Blwing the Whistle Table f Cntents Table f Cntents...1 Chapter Summary...2 Learning Outcmes...2 Frntline Fcus...3 Key Terms Internet Exercises Visit the Gvernment Accuntability Prject (GAP) at 7-1

2 Chapter Summary This chapter examines hw emplyees wh find evidence f unethical cnduct in their cmpanies g abut bringing that infrmatin t the attentin f the cmpanies senir management r the apprpriate regulatry authrities. This chapter explres ethical and unethical means f whistle-blwing. Whistle blwing came t its height in 2002 with the Sarbanes-Oxley Act and there are internal plicies t address the needs f whistle-blwers. Further, it explres an individual s duty t respnd as well as the risks they face by making the chice t act. Learning Outcmes After studying this chapter, the student shuld be able t: 1. Explain the term whistle-blwer and distinguish between internal and external whistleblwing. 2. Understand the different mtivatins f a whistle-blwer. 3. Evaluate the pssible cnsequences f ignring the cncerns f a whistle-blwer. 4. Recmmend hw t build internal plicies t address the needs f whistle-blwers. 5. Analyze the pssible risks invlved in becming a whistle-blwer. Extended Chapter Outline Nte: Key terms are in bldface. 7-2

3 Frntline Fcus Gd Mney Questins 1. If Ben decides t raise cncerns abut the prduct quality f the Benfield Vyagers, he will becme a whistle-blwer. The difference between internal and external whistle-blwing is explained n page 134. Which apprach shuld Ben fllw if he des decide t raise his cncerns? Student answers may vary. The right thing fr Ben t d if he decides t raise his cncerns is t take the issue t his immediate supervisrs. After speaking thrugh the chain f cmmand within his rganizatin if Ben feels his cncerns are nt being addressed and that they are true cncerns fr himself and fr the cmmunity, Ben shuld cnsider switching t a frm f external whistle-blwing. By invlving the media the issue f the quality f tires will be made public and thus the cmmunity will have all f the infrmatin they need t make an infrmed decisin abut what type f tire they wish t purchase. 2. The five cnditins that must exist fr whistle-blwing t be ethical are utlined n page 134. Has Rick given Ben enugh infrmatin t be cncerned abut the Benfield Vyagers? Rick, a knwledgeable experienced prfessinal in the field, has given Ben infrmatin t suggest an extreme cut in the quality f the tires which culd lead t harming a member f the public if the tires d nt perfrm as they shuld, thus meeting the first cnditin f ethical whistle-blwing. Ben needs t make sure when he decides t address the issue that he clearly expresses why he feels this brand f tires culd in fact be a dangerus chice fr cnsumers. If Ben s bss Jhn des nt take immediate actin, Ben shuld nt run right t the press. Ben shuld make sure he exhausts all effrts internally f trying t slve the issue. Ben may want t get dcumented statements frm ther tire prfessinals wh agree with Rick t ensure that when he addresses the situatin he has substantial evidence that the tires may nt be f decent quality. Finally, Ben must weigh the chances f succeeding and failing. He must determine if expsing these tires as dangerus will benefit bth the public and the cmpany r if he is misunderstanding the severity f the issue. 7-3

4 3. What shuld Ben d nw? Student respnses may vary. Ben needs t d sme research t see if the Vyager tire is f lw enugh quality t cause cncern. If Ben des find that the tire culd cause harm, he shuld address his cncerns with his immediate supervisr. Based n evidence, we can assume his supervisr will nt agree, in which case Ben shuld cntinue up the crprate ladder t address his cncerns. If evidence shws that these tires are f a quality that culd becme dangerus and the cmpany refuses t act, Ben shuld then cnsider taking the next step and alert the media. Learning Outcme 1: Explain the Term Whistle-Blwer and Distinguish Between Internal and External Whistle-Blwing. The pening Frntline Fcus case shws hw a tire sales agent faces an ethical decisin with a new prduct his cmpany is pushing t sell. The term whistle-blwer refers t an emplyee wh discvers crprate miscnduct and chses t bring it t the attentin f thers. After an emplyee decides t becme a whistle-blwer, s/he must then assess what channel f expsure s/he feels is mst beneficial t slving the dilemma. Internal whistle-blwing is when an emplyee discvers crprate miscnduct and brings it t the attentin f his r her supervisr, wh then fllws established prcedures t address the miscnduct within the rganizatin. External whistle-blwing is when an emplyee discvers crprate miscnduct and chses t bring it t the attentin f law-enfrcement agencies and/r the media. Learning Outcme 2: Understand the Different Mtivatins f a Whistle-Blwer. Whistle-blwers have been said t give an invaluable service t their rganizatin as well as the general public. Discvering illegal activity befre the media finds ut culd save a cmpany millins f dllars in fines and lst revenues. 7-4

5 Discvering ptential harm t cnsumers is an immeasurable benefit and thus ne f the reasns why the media hlds whistle-blwers t a standard f hnr and integrity. Many believe whistle-blwing can be mtivated by bth apprpriate and illegitimate reasns. Whistle-blwing is cnsidered ethical under five cnditins: (1) When the cmpany will cause serius harm t the public. (2) When the emplyee identifies a serius threat f harm he r she shuld reprt it and state his r her mral cncern. (3) When the emplyee s immediate supervisr des nt act the emplyee shuld exhaust the internal prcedures and chain f cmmand. (4) The emplyee must have dcumented evidence that is cnvincing that the practice, prduct r plicy seriusly puts the public in danger. (5) The emplyee must have valid reasns t believe that revealing the wrngding t the public will result in changed necessary t remedy the situatin. Whistle-blwing can be cnsidered unethical if the emplyee is mtivated by financial gain r media attentin, r if they carry a vendetta against the cmpany. In this case the legitimacy f their whistle-blwing must be questined. A qui tam lawsuit is a lawsuit brught n behalf f the federal gvernment by a whistleblwer under the Federal Civil False Claims Act, als knwn as Lincln s Law. Qui tam is an abbreviatin fr a lnger Latin phrase that establishes the whistleblwer as a deputized petitiner fr the gvernment in the case. The Federal Civil False Claims Act was enacted during the Civil War in 1863 t prtect the gvernment against fraudulent defense cntractrs. The act was strengthened in 1986 t make it easier and safer fr whistle-blwers t cme frward. While internal-whistle blwing is hard t track, external whistle-blwing has becme a 20 th century phenmenn. The term started in 1963 and reached a peak in

6 Learning Outcme 3: Evaluate the Pssible Cnsequences f Ignring the Cncerns f a Whistle-Blwer. Whatever the mtive f the whistle-blwer, the fact remains emplyees are increasingly mre willing t respnd t any questinable behavir they bserve. Emplyers face tw chices in these situatins: (1) They can ignre the warnings and risk public embarrassment r extreme financial penalties. (2) They can create an internal system allwing whistle-blwers t be heard befre the case is taken public. This ptin means hearing ut the whistle-blwer instead f firing them. Prir t 2002, safeguards against retaliatin were nt part f the legal prtectin fr whistle-blwers. The Whistleblwer Prtectin Act f 1989 addressed the issue f federal emplyees wh brught accusatins f unethical behavir and impsed deadlines in filing cmplaints and fr settlement payments t the whistle blwer (nly in effect fr federal emplyees). The Sarbanes-Oxley Act f 2002 (SOX) nt nly prhibited retaliatin against whistleblwers, but als encuraged the act f whistle-blwing. The Act requires that public cmpanies adpt a cde f ethics, set up an internal system t receive, review, and slicit emplyee reprts f fraud and r ethical vilatins. SOX des nt prtect emplyee cmplaints t the news media because under SOX these d nt cnstitute whistle-blwing. Emplyees wh prevail in whistle-blwer cases are entitled t damages which may include: Reinstatement t the same senirity status that the emplyee wuld have had but fr the adverse emplyment actin. Back pay. Interest. All cmpensatry damages t make the emplyee whle. 7-6

7 Special Damages, including litigatin csts, reasnable attrney fees and csts, expert witness fees, and all relief necessary t make the emplyee whle. Learning Outcme 4: Recmmend Hw t Build Internal Plicies t Address the Need f Whistle-Blwers. Emplyers are becming increasingly willing t respnd t any questinable behavir they bserve in the wrkplace. Prir t 2002, the nly prtectin fr a whistle-blwer was legislatin that encuraged the mral behavir f emplyees t speak ut, withut ffering any safeguards t the emplyees. The False Claims Act f 1863 was designed t prevent prfiteering frm the Civil War. The gvernment wuld split up t fifty percent f the recvered amunt with the individual that filed the petitin, but it did nt ffer specific prhibitins against retaliatry behavir. The Whistle-Blwer Prtectin Act f 1989 addressed the issues assciated with retaliatin against federal emplyees wh bring accusatins f unethical behavir: It impsed specific perfrmance deadlines in prcessing whistle-blwer cmplaints. It guaranteed the annymity f the whistle-blwer unless revealing the name wuld prevent criminal activity r prtect the safety f the public. It required prmpt payment f any prtin f the settlement t which the whistleblwer wuld be entitled, even if the case were still wrking its way thrugh the appeals prcess. It applied nly t federal emplyees until the Sarbanes-Oxley Act f The Sarbanes-Oxley Act f 2002 (SOX) is als knwn as the Crprate and Criminal Fraud Accuntability Act By putting the fllwing mechanisms in place emplyers can safeguard themselves frm breaking SOX. SOX des nt prvide fr punitive damages. 7-7

8 Emplyees wh prevail in whistle-blwer cases are entitled t damages; and the damages can include: Reinstatement t the same senirity status that the emplyee wuld have had but fr the adverse emplyment actin. Back pay Interest. All cmpensatry damages t make the emplyee whle. Special damages, including litigatin csts, reasnable attrney fees and csts, expert witness fees, and all relief necessary t make the emplyee whle. It is wise fr emplyers t address the needs f whistle-blwers and implement the fllwing plicies: A well-defined prcess t dcument hw such cmplaints are handled a nminated cntact persn, clearly identified authrity t respnd t the cmplaints, firm assurances f cnfidentiality, and n retaliatin against the emplyee. An emplyee htline t file cmplaints with assurance f cnfidentiality and n retaliatin. A prmpt and thrugh investigatin f all cmplaints. A detailed reprt f all investigatins, dcumenting all crprate fficers invlved and all actin taken. A whistle-blwer htline is a telephne line where emplyees can leave messages t alert a cmpany f suspected miscnduct withut revealing their identity. Emplyers must be cmmitted t fllw thrugh with all reprts. Trust must be established fr the mechanisms t wrk. Learning Outcme 5: Analyze the Pssible Risks Invlved in Becming a Whistle-Blwer The act f whistle-blwing ften gets such psitive attentin that it masks the risks t ne s wn career and financial stability. 7-8

9 If an emplyee is left with n ther ptin than t g public than the rganizatin has failed t address the situatin internally fr the lng-term imprvement f the cperatin and all f its stakehlders. Ging public shuld be the last resrt. The fallut f media attentin and the ften irreversible damage dne t the cmpany shuld be enugh t pressure the executives t lk deeper and fix what is brken. Regrettably, many still chse t bury the truth, hire a legal gunslinger, r put the emplyee in a psitin f such severe financial risk that s/he decides nt t speak ut. A study f 233 whistle-blwers by Dnald Seken f St. Elizabeth s Hspital in Washingtn, DC, fund that the average whistle-blwer was a man in his frties with a strng cnscience and high mral values. The fllwing statistics were als revealed abut whistle-blwers: Abut 90 percent f whistle-blwers are fired r demted. Abut 27 percent are faced lawsuits. Abut 26 percent had t seek psychiatric r physical care. Abut 25 percent suffered alchl abuse. Abut 17 percent lst their hmes. Abut 15 percent gt divrced. Abut 10 percent attempted suicide. Abut 8 percent were bankrupted. Despite these repercussins, nly 16 percent said they wuldn t blw the whistle again. 7-9

10 Life Skills Making Difficult Decisins Many individuals, such as thse discussed in this chapter, have been faced with situatins where there is a cnflict in ethical standards and they cannt simply lk the ther way. What wuld yu d in this situatin? Culd yu life with yur decisin? What if there were negative impacts n the cmpany as a result f yur decisin? Then there are the cnsequences fr yu, yur family, cwrkers, etc. Nw yu can see why whistle-blwers face such emtinal turmil. If yu find yurself in such a situatin, Prgress Check Questins 1. What is a whistle-blwer? A whistle-blwer is an emplyee wh discvers crprate miscnduct and chses t bring it t the attentin f thers. 2. What is internal whistle-blwing? Internal whistle-blwing is when an emplyee discvers crprate miscnduct and brings it t the attentin f his r her supervisr, wh then fllws established prcedures t address the miscnduct within the rganizatin. 3. What is external whistle-blwing? External whistle-blwing is when an emplyee discvers crprate miscnduct and chses t bring it t the attentin f law-enfrcement agencies and/r the media. 4. Is whistle-blwing a gd thing? Many individuals, especially the media believe that whistle-blwing is a gd thing, nt nly because it can save an rganizatin millins f dllars, but because it can ften prevent substantial harm t cnsumers. Hwever, sme individuals may argue that whistle-blwers are mtivated by mney r have egs and a trublemaker persnality. Als, sme feel that whistle-blwers are sneaks r squealer wh has brken the trust and lyalty f their emplyer. 7-10

11 5. List five cnditins fr whistle-blwing t be cnsidered ethical. (1) When the cmpany will cause serius harm t the public. (2) When the emplyee identifies a serius threat f harm he r she shuld reprt it and state his r her mral cncern. (3) When the emplyee s immediate supervisr des nt act the emplyee shuld exhaust the internal prcedures and chain f cmmand. (4) The emplyee must have dcumented evidence that is cnvincing that the practice, prduct r plicy seriusly puts the public in danger. (5) The emplyee must have valid reasns t believe that revealing the wrngding t the public will result in changed necessary t remedy the situatin 6. Under what cnditin culd whistle-blwing be cnsidered unethical? Whistle-blwing can be cnsidered unethical if the emplyee is mtivated by financial gain r media attentin, r if they carry a vendetta against the cmpany. In this case the legitimacy f their whistle-blwing must be questined. 7. If yu blw the whistle n a cmpany fr a persnal vendetta against anther emplyee but receive n financial reward, is that mre r less ethical that ding it just fr the mney? Student answers will vary. Persnal vendettas and/r financial rewards are unethical reasns fr blwing the whistle n crpratins. Whistle-blwing shuld be abut wanting t prevent unethical behavir that will affect numerus stakehlders by shedding light n behavir unknwn t thers. 8. Wuld the lack f any financial reward make yu mre r less willing t cnsider being a whistle-blwer? Why? Student answers will vary. Blwing the whistle n smene r n an rganizatin shuld nt be abut the reward. It is imprtant fr the health f the cmpany and its stakehlders t reprt unethical behavir. 7-11

12 9. If an emplyee blws the whistle n an rganizatin n the basis f a rumr, is that ethical? N, ne f the cnditins fr ethical whistle-blwing states that there must be dcumented evidence that is cnvincing t a reasnable, impartial bserver. 10. If that infrmatin turns ut t be false, shuld the emplyee be liable fr damages? Explain yur answer. Student s answers may vary. If an emplyee blws the whistle n an rganizatin based n a rumr and the infrmatin is false, then the emplyee shuld be held liable fr damages. The emplyee will have cst the rganizatin its reputatin and have t spend time mending and rebuilding trust. Whistle-blwing shuld nly take place if there is dcumented evidence that is cnvincing t a reasnable, impartial bserver. 11. Cmpensatin t make the emplyee whle under SOX isn t as clear as a percentage f the funds recvered fr a gvernment whistle-blwer. Des that make it less likely that we ll see mre whistle-blwing under SOX? Student s answers will vary. It may r may nt prmte mre whistle-blwing, but the financial reward aspect shuld nt be the primary mtivatin. The primary mtivatin shuld be t d the right thing and prevent an rganizatin frm ging thrugh a crprate scandal when it can be prevented. 12. Under SOX, cmplaining t the media isn t recgnized as whistle-blwing. Is that ethical? Student s answers will vary. Cmplaining t the media is different frm whistle-blwing. Cmplaints shuld be addressed and taken care f by the rganizatin, whereas, the infrmatin displayed by the whistle-blwer will be taken int cnsideratin and dealt with by legislatin. 13. Hw shuld managers r supervisrs respnd t an emplyee wh brings evidence f questinable behavir t their attentin? Managers shuld tell the emplyee abut the cmpany s defined prcess and ensure the emplyee s cnfidentiality. They shuld then take the emplyee thrugh the next steps f the cmpany s utlined prcess fr reprting questinable behavir. 7-12

13 14. Shuld that emplyee be given any reassurances f prtectin fr making the tugh decisin t cme frward? Yes, as it is stated in SOX, retaliatin against whistle-blwers is prhibited and the cmpany s plicies shuld stress this alng with extreme cnfidentiality. 15. D yu think a htline that guarantees the annymity f the caller will encurage mre emplyees t cme frward? Student answers may vary. An annymus htline wuld allw fr thse wh are uncmfrtable cming frward t d s. Hwever, this may als encurage thse wh have persnal vendettas t cause unnecessary investigatins as well. 16. Des yur cmpany have a whistle-blwer htline? Hw did yu find ut that there is (r isn t) ne? Student answers may vary. Mst likely, students will nt be wrking in a cmpany that has a whistle-blwer htline, but many will upn graduatin. If a htline exists, the cmpany will want t share it with their emplyees. 7-13

14 Ethical Dilemma Case 7.1 The Insider 1. Dr. Wigand was initially unwilling t g public with his infrmatin. What caused him t change his mind? After being fired due t pr cmmunicatin skills, the cmpany mdified their cnfidentiality agreement. While still emplyed, Wigland did nt want t break his integrity f hnring the cntract. Once he realized they did nt believe he wuld hnr their agreement he chse t g public. 2. Did CBS pursue Wigand s stry because it was the right thing t d r because it was a gd stry? Student respnses will vary. Arguments fr CBS cvering the stry culd be cnsidered fr bth the right thing t d and because it was a gd stry. Bth f these were prbably mtivatrs fr CBS. They were able t turn a true stry int a mvie with a Hllywd cast. 3. Since CBS played such a large part in bringing Dr. Wigand s stry t the public, d yu think the netwrk als had an bligatin t supprt him nce the stry brke? Explain why r why nt. Student respnses will vary. CBS was nt bligated t supprt Wigand, but shuld have run the interview as an unbiased display f cverage. CBS des have an bligatin t display the facts f the stries they are cvering. 4. Was CBS s decisin nt t run the interview driven by any ethical cncerns? Student respnses will vary. The main decisin nt t run the interview, hwever, came frm fears f lawsuits frm B&W. Students answer may vary as t whether this was because f financial reasns r the ethical issue f interfering in t ther parties cntractual relatinship. 7-14

15 Case 7.2 The Cld, Hard Reality 1. Wh tk the greater risk here: Christine Casey r David Welch? Student respnses will vary. While Casey stated her cncerns and later resigned, Welch filed fr whistle-blwer prtectin under SOX. Casey was ruled against by the judge because she made cnstructive prpsals t senir management rather than filing explicit cmplaints. Welch was fired fr raising his cncerns within the rganizatin, and therefre, culd be awarded whistle-blwer prtectin. 2. Was the alleged behavir at Mattel mre r less unethical than the behavir at the Bank f Flyd? Student respnses will vary. Bth included falsifying financial infrmatin. 3. D yu think Casey and Welch regret their decisins t g public with their infrmatin? Why r why nt? Student respnses will vary. While Welch cmmented that his wrst fears were realized and he wuld never again wrk in the industry, if his beliefs utweigh the influence f mney he prbably des nt regret his decisin. While Casey prbably regrets that the cmpany settled withut having t admit any wrngding, if she stands by her beliefs she als prbably des nt regret her decisin. 4. D yu think their behavir changed anything at either cmpany? Student respnses will vary. It seems as thugh the utcme f these tw scenaris wuld discurage peple frm whistle-blwing because neither had a psitive utcme frm ding the right thing. 7-15

16 Frntline Fcus Gd Mney Ben Makes a Decisin Questins 1. What d yu think will happen nw? Student answers will vary. The family will prbably sue the tire cmpany fr damages. The mre direct effect with be hw Ben handles the pressure f knwing he culd have stpped this. 2. What will the cnsequences fr Ben, Rick, their tire stre, and Benfield? Student answers will vary. Benfield and ptentially the stre culd have lawsuits n their hands. Ben and Rick will have t live with knwing they shuld have stepped up and reprted what they thught. 3. Shuld Ben have spken ut against the Vyager tires? Student answers will vary. Ben shuld have called the cmpany htline s that the cmpany culd fllw prcedure and investigate the situatin. Key Terms External Whistle-Blwing: When an emplyee discvers crprate miscnduct and chses t bring it t the attentin f law-enfrcement agencies and/r the media. Internal Whistle-Blwing: When an emplyee discvers crprate miscnduct and brings it t the attentin f his r her supervisr, wh then fllws established prcedures t address the miscnduct within the rganizatin. Qui-Tam Lawsuit: A lawsuit brught n behalf f the federal gvernment by a whistleblwer under the Federal Civil False Claims Act, als knwn as Lincln s Law. Whistle-blwers wh expse fraudulent behavir against the gvernment are entitled t between 10 and 30 percent f the amunt recvered. Whistle-Blwer: An emplyee wh discvers crprate miscnduct and chses t bring it t the attentin f thers. 7-16

17 Review Questins 1. Why are whistle-blwers regarded as mdels f hnr and integrity? Student respnses will vary. Whistle-blwers can be regarded as mdels f hnr and integrity because they put their careers and persnal lives at risk t d the right thing. 2. Which whistle-blwing ptin is better fr an rganizatin internal r external? Why? Student respnses will vary. Internal whistle-blwers d nt receive a tremendus amunt f attentin and it is harder t track. They avid public embarrassment. External whistleblwing explits the cmpany and it typically creates mre public awareness f an issue r incident at a particular rganizatin. 3. Why wuld an rganizatin decide t ignre evidence presented by a whistle-blwer? Student respnses will vary. An rganizatin culd decide t ignre evidence if it thught the individual was reacting in the interest f his/her wn ethical perceptin. 4. Is it reasnable fr a whistle-blwer t expect a guarantee f annymity? Student respnses will vary. Sme rganizatins have whistle-blwer htlines that individuals use t prtect their identity. A well-defined prcess is needed t determine hw cmplaints are handled. It can assure cnfidentiality and ensure that there is n retaliatin against the emplyee. 5. Why shuld a whistle-blwer be cncerned abut retaliatin? Student respnses will vary. A whistle-blwer shuld be cncerned abut retaliatin because s/he culd lse their jb r create an envirnment that culd be dangerus r uncmfrtable in which t wrk. 6. Why is trust such an imprtant issue in whistle-blwing? Student respnses will vary. Whistle-blwing has becme ppular ver the years and it is imprtant that the emplyee is assured that his/her infrmatin can be given annymusly and withut fear f retaliatin. 7-17

18 Review Exercises NOTE: sme questins allw fr a number f different answers. Belw are sme suggestins. 1. Yu wrk fr a meatpacking cmpany. Yu have discvered credible evidence that yur cmpany s delivery drivers have been stealing cuts f meat and replacing them with ice t ensure that the delivery meets the stated weight n the delivery invice. The cmpany has 12 drivers and, as far as yu can tell, they are all in n this scheme. Yur cmpany has a welladvertised whistle-blwer htline. What d yu d? Student respnses will vary. If yu d nt have substantial evidence yu shuld reprt the situatin t the htline s that they may d an investigatin. If yu d have evidence and feel cmfrtable ding s yu may want t take the evidence t yur direct manager. 2. What wuld yu d if yur cmpany did nt have a whistle-blwing plicy? Student respnses will vary. The right thing t d wuld be t take the infrmatin t yur direct supervisr. Yu must make sure yu have evidence and are nt just ging n rumrs r suspicins. 3. Yu later discver that ne f the drivers was nt a part f the scheme but was fired anyway when the infrmatin was made public. What d yu d? Student respnses will vary. Yu may want t reprt what yu knw t a supervisr t try and help the driver get their jb back. This is why it is imprtant t knw all f the facts befre making accusatins. 4. Shuld the driver get his jb back? Why r why nt? Student respnses will vary. It will be hard t prve the driver was nt invlved. It will als be hard t prve if he was aware f the scheme and turned a blind eye r if he was unaware f the situatin. 7-18

19 Internet Exercises 1. Visit the Gvernment Accuntability Prject (GAP) at a. What is the missin f GAP? Missin: The Gvernment Accuntability Prject (GAP) is a 30-year-ld nnprfit public interest grup that prmtes gvernment and crprate accuntability by advancing ccupatinal free speech, defending whistleblwers, and empwering citizen activists. We pursue this missin thrugh ur Nuclear Safety, Internatinal Refrm, Crprate Accuntability, Fd & Drug Safety, and Federal Emplyee/Natinal Security prgrams. GAP is the natin's leading whistleblwer prtectin rganizatin. b. Hw is GAP funded? Funded in 1977, GAP is a nn-prfit, public interest rganizatin that receives funding frm fundatins, individuals, and legal fees. c. What kind f assistance is available thrugh GAP fr smene thinking abut becming a whistle-blwer? Student respnses will vary. A few examples include: 12 Survival Strategies A GAP Intake Applicatin fr GAP t review yur case Cnferences 2. Visit the Natinal Whistleblwers Center at a. Using the interactive map, select ne cuntry and summarize the whistle-blwing activity in that cuntry. Students respnses will vary based n the cuntry they select. Students shuld include a summary f the whistle-blwing activity in that cmpany. b. Identify the whistle-blwer prtectins in effect in yur hme state. Students respnses will vary based n the student s hme state. 7-19

20 c. There are nw tw whistle-blwing Web sites separated by nly ne letter. Summarize their differences and prpse which ne ffers the greatest assistance t a ptential whistle-blwer. Students respnses will vary. Team Exercises 1. Guilt by Omissin. Divide int tw grups and prepare arguments fr and against the fllwing behavir: Yu wrk fr a large retail clthing cmpany that spends a large amunt f its advertising budget emphasizing that its clthes are Made in America. Yu discver that nly 15 percent f its garments are actually made in America. The ther 85 percent are actually either cut frm patterns verseas and assembled here in the United States, r cut and assembled verseas and imprted as cmpleted garments. Yur hmetwn depends n this clthing cmpany as the largest lcal emplyer. Several f yur friends and family wrk at the lcal garment assembly factry. Shuld yu g public with this infrmatin? Student respnses will vary. It is nt kay t use false advertisement. This ges deeper int deciding whether the statement made in America insinuates that 100% f their prducts are made in America. Hwever, this als addresses the questin f wh is affected by this decisin. If this hmetwn depends n this cmpany and several friends and family members wrk there, these peple may be ut f a jb if the whistle is blwn. 2. Trtius Interference. Divide int tw grups and prepare arguments fr and against the fllwing behavir: In the case f Dr. Jeffrey Wigand and the Brwn & Williamsn Tbacc Cmpany, the CBS Bradcasting Cmpany chse nt t air Dr. Wigand s 60 Minutes interview with Mike Wallace under threat f legal actin fr trtius interference between B&W and Dr. Wigand. There were suspicins that CBS was mre cncerned abut aviding any ptential legal actin that culd derail its pending sale t the Westinghuse Crpratin. Was CBS 7-20

21 behaving ethically in putting the welfare f its stakehlders in the Westinghuse deal ahead f its bligatin t supprt Dr. Wigand? Student respnses will vary. A crpratin shuld never act in a way that wuld negatively affect their sharehlders. Hwever, sme may feel that CBS shuld nt have agreed t supprt Dr. Wigand and then backed ff the case. 3. A New Apprach t Freshness. Divide int tw grups and prepare arguments fr and against the fllwing behavir: Yu wrk in the meat department f stre #2795 f a large retail grcery chain. The cmpany recently annunced a change in the meat-handling prtcls frm the primary supplier. Starting in January 2009, the meat will be gassed with carbn mnxide befre packaging. This retains a brighter clr fr the meat and delays the disclratin that usually ccurs as the meat begins t spil. Yu understand frm the mem that there will be n infrmatin n the prduct label t indicate this prtcl change and that the cmpany has n plans t ntify custmers f this new prcess. Shuld yu speak ut abut the prcedure? Student respnses will vary. This wuld depend n the health effects f the carbn mnxide. If ding s might cause peple t buy meat that will g bad earlier, r if the gas itself will harm cnsumers, yu shuld speak ut abut the prcedure. 4. Califrnia Organic. Divide int tw grups and prepare arguments fr and against the fllwing behavir: Yu wrk in the accunting department f a family-wned mushrm grwer based in Califrnia that sells premium rganic mushrms t lcal restaurants and high-end retail grcery stres. The cmpany s prduct range includes bth fresh and dried mushrms. Yur rganic certificatin allws yu t charge tp-dllar fr yur prduct, but yu ntice frm invices that perating csts are increasing significantly withut any increase in revenues. The market wn t absrb a price increase, s the cmpany has t absrb the higher csts and accept lwer prfits. One day yu ntice invices fr the purchase f dried mushrms frm a Japanese supplier. The dried mushrms are nt listed as being rganic, 7-21

22 but they are apparently being added t yur cmpany s dried mushrms, which are labeled rganic and Califrnia-grwn. Shuld yu speak ut abut this? Student respnses will vary. This is a prime case f false advertising. The cmpany cannt claim their mushrms are rganic and Califrnia-raised if they are imprted frm Japan. Thinking Critically Exercise 7.1 Questinable Mtives 1. Birkenfeld is adamant that his prisn sentence is unfair when cmpared t the fact that n ne else (Olenicff, UBS bankers) went t jail. Des he have a pint? Students respnses will vary. Birkenfeld withheld pertinent data related t Olenicff s business dealings. He did nt disclse the nature f his relatinship with Olenicff t the United States Justice Department. 2. Why did UBS elect t settle with the U.S. Gvernment? Students respnses will vary. UBS did nt want t lse its access t a large market and it wanted t remain a glbal banking entity. UBS als sught the interventin f the Swiss Gvernment t help its case. 3. Given that there was an immunity agreement in place, what did the Justice Department gain frm prsecuting Birkenfeld? Students respnses will vary. Students shuld recall that Birkenfeld was charged with helping Olenicff by referring him t a UBS specialist in the creatin f ffshre shell crpratins designed t hide the true wnership f UBS accunts. The Justice Department charged Birkenfeld with cnspiracy t cmmit tax fraud. 4. Critics are cncerned that Birkenfeld s prisn sentence will discurage ther tax whistleblwers frm cming frward. Is that a valid cncern? Why r why nt? Students respnses will vary. It is a valid cncern; hwever, Birkenfeld was nt hnest with the Justice Department because he withheld pertinent infrmatin abut the case. 7-22

23 Thinking Critically Exercise 7.2 Wikileaks: Principled Leaking? 1. Critics have argued that WikiLeaks is nw attacking secrecy n all frnts, with n cncern fr the cnsequences f the infrmatin psted n its site. D thse actins align with the ethical principles f whistle-blwing? Students respnses will vary based n their perceptin f the case. In sme respnses, the students shuld agree that the actins align with the ethical principles f whistle blwing. On the ther hand, sme students will argue that its actins des nt align with the ethical principles f whistle-blwing. 2. Des WikiLeaks have an bligatin t censr pstings t prtect inncent individuals wh may be harmed by making the infrmatin public? Shuld the site take steps t verify the accuracy f the psted dcuments? Students respnses will vary. Sme students may argue that it des have an bligatin t censr pstings t prtect individuals, and ther students may argue that it wuld ruin the purpse f the Web site. If anyne can pst anything n the Web site, there is n telling what culd end up n it. Hw wuld anyne knw if the data is really accurate? 3. Wuld fulfilling the visin f a wiki cmmunity (with editrs and fact checkers) reduce the criticism directed at the site? Why r why nt? Students respnses will vary. Sme students may feel that editrs and fact checkers wuld reduce the criticism directed at the site. Other students may feel that the editrs and fact checkers wuld reduce the effectiveness and the apparent hands-ff editrial plicy at the site. 4. Des the decisin t withhld 15,000 dcuments in a harm minimizatin prcess indicate that WikiLeaks is develping sme sense f the ptential cnsequences f its actins? Why r why nt? Students respnses will vary based n their perceptins f the case. 7-23

24 Thinking Critically Exercise 7.3 The Olivieri Case 1. Was it ethical fr Aptex t include a three-year gag clause in the agreement with Dr. Olivieri? Students respnses will vary. It is nt ethical t keep hidden infrmatin that culd prve t be harmful fr sciety yet that is what this clause did. 2. Even thugh Dr. Olivieri later admitted that she shuld never have signed the agreement with Aptex that included a cnfidentiality clause, des the fact that she did sign it have any bearing n her actins here? Why r why nt? Students respnses will vary. While it is unethical t break a signed agreement, sme may feel it is mre unethical t keep hidden infrmatin that culd cause harm t a number f children. 3. Was Olivieri s decisin t publish her findings abut the trial an example f universalism r utilitarianism? Explain yur answer. Students respnses will vary. Oliveiri s decisin t publish her findings abut the trial is an example f utilitarianism. Utilitarianism is the philsphy that ethical chices are made based n the greatest gd fr the greatest number f peple. Olivieri culd have allwed Aptex t terminate the findings, but this wuld have allwed the drug t be used n peple wh cause a txic build-up f irn in the liver knwn as hepatic fibrsis. 4. If we identify the key players in this case as Dr. Olivieri, Aptex, the Hspital fr Sick Children, and the University f Trnt, what are the cnflicts f interest between them all? Students respnses will vary. The cnflict f interest fr Aptex is the large amunt f time and mney they have invested in their drug and the well being f their cmpany. The cnflict f interest f the University is the dnatin they were expecting t receive frm the CEO f Aptex. 7-24

25 5. What d yu think wuld have happened if Dr. Olivieri s fellw academics had nt supprted her in her fight? Students respnses will vary. Olivieri wuld have never been reinstated nr had the cmplaints withdrawn r legal fees cvered if her fellw academics had nt supprted her in her fight. 6. Hw culd this situatin have been handled differently t avid such a lengthy and bitter battle? Students respnses will vary. Dr. Olivieri shuld nt have signed the agreement with Aptex that did nt allw the unauthrized release f any findings. Als, she needed t g public with her findings after appraching Aptex and raising her ethical cncerns she had with terminating the results. 7-25