Whistleblowing, Ethical Behaviour - Research Paper Example

?Bachelor of Business - Paper on Leadership Issues Whistle-Blowing: Ethical Behaviour? Introduction Leadership is crucial for the success of an organisation. It is a basic skill managers have to posses to enable him or her to effectively direct the operations of the unit he or she is managing. Directing employees is one of the five functions of management along with planning, controlling, staffing and organising (Erven 1994). Hence, being a leader is very crucial since the capability of the manager to give directions is very crucial for the unit’s success and of course for its capability to contribute to the achievement of company goals and objectives. However, to be an effective leader, it is important that leaders know the boundaries of their authority. Likewise, as leaders, it is important to be able to set good examples because people tend to emulate the things that are being done by the people who are over them on the corporate ladder. Hence, the ethics of leaders come into play crucially. However, there are many interpretations of what ethics is about. Some would say that ethics is about right and wrong or about religious beliefs. Interestingly, some would say that it is about being a law abiding citizen while some would say that it is doing what is generally accepted. However, confining ethics to each of the foregoing examples may be impossible such as religion which has a very high moral standard. It may also be a problem to equate it with laws or to what is generally accepted since these may likewise deviate from what is truly ethical. Basically, ethics are about having a high standard about what is right and wrong that states what people ought to do. Likewise, it is also the learning process as well as the development of one’s standards of being ethical (Velasquez et al 2010). Nowadays, ethical issues pervade companies especially when there are issues divulged by employees who are unable to take in things that are going badly for the company. As such, when certain anomalies are divulged by employees or former anomalies, these become cases of whistle-blowing. It is thus important to make this distinction because it is in these cases that leaders’ ethical issues come into play since these are the things that they can directly influence. All other disclosures that are not made by employees or former employees are not cases of whistle-blowing (Sollars 2001). It is very important for leaders to ensure that issues pertaining to whistle-blowing are handle with utmost professionalism as these may easily expose the ethical standards that they posses. Hence, these will be the focus of the case in point. What recommendations for action would you make to the senior management? Basically, the case presented a company that went from bad to worse after the initial incident of whistle-blowing that exposed major anomalies resulting to unpleasant things such as investigations and even arrests. It was an unfortunate turn that instead of having an improvement in operations, the company’s output further dropped not to mention the morale of the employees. Hence, it is important for the top management to first recognize that the business environment of today has evolved to a level that has provided a more conducive environment for whistle-blowing. The major advances in technology have tremendously improved the capability of communications enabling new channels and ways of providing and getting information in ways unimagined just a decade and a half ago. Likewise, companies must be made aware that these technological improvements have brought in a new era for businesses known as the information age effectively phasing out the industrial stage. Thus, with this new age comes a new breed of manpower known as knowledge workers. In fact, many such employees are making their way deep into the corporate world (Serrat, 2008). This only means that people nowadays know better and can communicate easier which has made disclosures of anomalies easier. Thus, it is important that the senior management in this company adopt a whistle-blowing policy. Not all incidences may involve an officer or a co-worker but it could also stem from safety processes that may affect the products that companies sell. There was an instance wherein an employee in a drug company reported such an incident but instead of improving the safety, the employee was terminated leading to a court battle. The employee won and the company paid for damages. However, if the company had a proper policy to handle such events then the incident could have been an opportunity for further improvement in the company (Barnett 1992). Discuss the ethics of the new manager’s behaviour The company in the case hired a new manager. Probably to try to change the situation, instead of hiring an engineer, the new manager that was hired is an accountant. This further dampened the morale of the employee since they believed that only an engineer could handle the position. As such, the new manager has had to adapt and in the process even compromise since most of the employees have been with the company for about two decades. Hence, the new manager was soon swept into the culture of the old employees who probably benefitted from the past excesses but were able to somehow go scot free from the investigations previously conducted. In the process, the new manager ended up doing what is probably the accepted practice of his predecessors. Thus, his view of ethics was influenced by what has been the norm in the company and not necessarily by what is right (Velasquez et al 2010). Clearly, the vacation which was provided by a bidding supplier as well as the unwarranted purchase of equipment without consultation to or presence of a more technically knowledgeable subordinate which caused unwarranted expenses for the company demonstrates a relegation of ethics because of the influence of money (Learning and Teaching Ethics 2006). Thus, the unethical behaviour of the new manager has further exacerbated the problem wherein the recent activities show that the unsuitable behaviour of the past that was fought against by the initial whistleblower did not end with the arrests and convictions but was merely transferred to the new manager. Identify the drawbacks and benefits of whistle-blowing for the organisation, the individual and the community Whistle-blowing incidents are usually unpleasant events that could bring even more problems when handled improperly by the management. However, these may also bring valuable opportunities to the company to improve processes and weed out unscrupulous officers and employees so as to be able to improve productivity. Also, like all other things, the timing for blowing the proverbial whistle is very important. At Worldcom and Enron, the efforts of the concerned employees of these companies came too late to stop these companies from plummeting. Although there have been disclosures, the damages in the company was so acute that these companies eventually went under pulling down the shareholders and employees (Ravishankar 2003). However, for the company in the case, the problem was somehow resolved initially after the incidence of whistle-blowing. Unfortunately, it seems that the culture was already heavily tainted that even the hiring of a new manager with a different background did not help improve the situation. It somehow demonstrates that the earlier whistle-blowing incident, despite the major impact it had that even ended in convictions, did not do much good because the events did not seem to influence the culture. As such, it seems that the sacrifice by the whistleblower was not fully compensated since operations hardly improved after the incident. The problem is that since this is a publicly owned corporation that has yet to be privatized, taxpayer money is surely involved. This loops the community in since it is not only the company’s coffers that are being raided but the pockets of the taxpayers as well. Likewise, the problem with productivity greatly influences the company’s output as well. Example of a Whistle blowing case However, despite growing support, whistle-blowing remain a very difficult challenge for those that are willing to step out and provide disclosures that may cause considerable attention and even retribution. Also, some whistleblowers are able to provide such disclosures because they are part of the scheme themselves. Very recently, a case in Australia took an unexpected turn wherein the ongoing prosecution of a whistleblower has shown that confidentiality clauses in the government tend to be abused. It seemed as though the trial against whistleblower Allan Kessing was unfair. Kessing disclosed some documents to a staff of Anthony Albanese who was then the transport spokesman of the labor opposition. Basically, Kessing made the disclosure against lapses in security to protect lives at the Sydney Airport (Merritt 2011). Thus, it seemed that there are many things that the prosecution has to explain since the latest developments seem to point out that the disclosure by Kessing was made to the Australian which he denies intensely. Basically, to help improve security at the airport and in the process protect many lives, Allan Kessing had to gamble his very freedom not to mention his life. As in the experience of the company in the case, the whistle-blowing experience was not a pleasant one. On the contrary though, in this latest example, it was the whistleblower that is being squeezed in by the system. Fortunately, recent evidences seem capable of clearing the name of the whistleblower. In the case, the company’s culture prevented real reforms from happening and the problem was merely transferred along with the change of leadership. In this case, it is the whistleblower that has had to sacrifice and has also been prosecuted. Benefits and Drawbacks It is never easy to go up against a system for it is very huge and powerful. On a smaller scale, it is also difficult to tell on officers and even on colleagues. This is extremely hard if the culture has already assimilated the wrong practice. This has been a significant drawback in whistle-blowing wherein it is the employee that has sought improvement in the system that is on trial. This has also opened up a series of ethical issues wherein the web of conspiracy seem to stretch far beyond the target of the whistle-blowing incident. As such, it is very hard for the whistleblower since the fiasco that ensues after the incident has repercussions that are hard to imagine at the onset of the problem. Weill (2011) states that whistle-blowing is a very tedious process and a very tricky moral issue. Consequently, disclosures must be free of vindictiveness and must be done so that there are adjustments for the better that should happen in the company. Unfortunately, the company in the case did not fully benefit from the whistle-blowing incident. On the contrary, the corrupt practice even became more rampant despite the hiring of the new manager which, instead of being part of the solution, soon became part of the problem instead. It is quite unfortunate though since the employees themselves lost drastically affecting morale. Likewise, the situation has painted an organisation that seem to lack ethics that has drastically affected the unit’s productivity. As leaders, managers must be able to show that they are ethically sound to lead the unit and be able to direct their manpower in the achievement of their goals and objectives without compromising their moral standards. Kidder (1995) highlights some suggestions wherein the managers must be able to determine the existence of an issue that may be morally pressing. Likewise, the manager must determine where this or these are coming from and then be able to get facts and evidences of such undertakings. This must be followed by an extreme examination of what is wrong and what is right as well as an analysis to determine if something that is being done is actually the right thing or merely the convenient one. The application of principles to resolve the issue follows as well as further investigations prior to making a decision. However, the solutions herein are dynamic and not static necessitating further analysis and review on the course of action that was chosen. The management in the case must be able to fully incorporate the whistle-blowing policy so as to take advantage its benefits. Currently, production is low because of the effect on the motivation of employees. This may change if the company is able to formulate better ways to appreciate and incorporate and of course highlight the benefits of whistle-blowing. By showing to its manpower that the company and its leaders are able to stick to its ethical standards, employees would generally feel good about the company that they are working for. Thus, these employees can be more proud of what they are doing that can significantly boost morale and of course productivity (Sirota et al 2006). This benefit can even redound even to the community as the company can more effectively utilize taxpayer money. Furthermore, whistle-blowing incidents that are successful can restore or improve trust within the company. This can provide fertile grounds for teamwork that can help in accomplishing tasks easier (Bailey 1999). Unfortunately, for the company in the case, the whistle-blowing incident further deteriorated the trust of the employees against each other and on the management as well. Likewise, the new manager that was hired further justified the lack of trust by the employees by demonstrating his lack of technical expertise when he purchased the machine as well as his lack of ethics by taking in the vacation paid for by one of the companies in the bidding process. It also does not help that this new leader was immediately swallowed by the system which is probably due to the fact that most of the employees have been in the company way long before he got hired. Conclusion The foregoing case as well as the example shows the very crucial part that leaders and their ethical standards affect the performance of the company. Also, the challenges of whistle-blowing have also been highlighted wherein the whistleblower in the example has had to put even his liberty at risk. For the company in the case, the whistle-blowing incident even became counterproductive as the employees lack of trust and the new manager further resulted in the decline of the company’s output. As such, it is strongly recommended that the management establish its own strong whistle-blowing policy that will ensure that investigations and convictions do not just become short term solutions but that the lessons from such events are integrated into the culture of the company. This will pave the way for employees to be more open and not worry about the stresses that have plagued the company after the whistle-blowing incident. The way a company handles such cases also determines if these give benefits or just drawbacks. Thus, to be able to capitalize of these events, the management is advised to ensure that the policies for whistle-blowing is implemented and as an addition to reward ethical behaviour . References Bailey, M 1999, performance technology and training. Available at: http://www.cedu.niu.edu/~bailey/ftf564/jobdes.pdf Barnett, T 1992, Why your company should have a whistleblowing policy, SAM Advanced Management Journal. Available at: http://www.allbusiness.com/management/347152-1.html Erven, B 1994, The foundation of management, Department of Agricultural Economics  Ohio State University. Available at: http://www.ag.ohio-state.edu/~mgtexcel/Function.html Kidder, RM 1995, How good people make tough choices, William Morrow and Company, Inc, New York. Learning and Teaching Ethics, 2006, Guidelines for facilitating solutions to ethical dilemmas in professional practice, Penn State Engineering. Available at: http://www.vanderbilt.edu/CenterforEthics/Descriptions-More%20Info/Resource%20Pages%20for%20Ethics%20Workshop%20-%202006.pdf Merritt , C 2011, Cracks in Kessing case illustrate why secrecy is insidious ,The Australian, vol. 4, p. 30. Available at: http://www.bmartin.cc/dissent/contacts/au_wba/whistle201104.pdf Ravishankar, L 2003, Encouraging internal whistleblowing in organisations, Business and Organisational Ethics Partnership,Sta, Clara University. Available at: http://www.scu.edu/ethics/publications/submitted/whistleblowing.html Serrat, O 2008, Managing knowledge workers, Asian Development Bank. Available at:http://www.adb.org/Documents/Information/Knowledge-Solutions/Managing-Knowledge-Workers.pdf Sirota et al 2006, ‘Why your employees are losing Motivation’ Harvard Management Update, vol. 11, no. 1. Available at: http://hbswk.hbs.edu/archive/5289.html Sollars, G 2001, Whistle blowing, Fairleigh Dickinson University. Available at: http://alpha.fdu.edu/~sollars/lecture%20six6.htm Velasquez M et al, Meyer, 2010, Issues in Ethics IIE V1 N1 (Fall 1987) Revised 2010. Available at: http://www.scu.edu/ethics/practicing/decision/whatisethics.html Weill, V 2011, Whistleblowing:  What have we learned since the Challenger?, Center for the Study of Ethics in the Profession at Illinois Institute of Technology. Available at: http://www.nspe.org/Ethics/EthicsResources/Otherresources/whistle.html Read More