Making it Stick | Why has the increased attention to corporate scandals proven to be something of a mixed blessing?

Why has the increased attention to corporate scandals proven to be something of a mixed blessing?

On the one hand, the average investor can be forgiven for thinking that the business world is full of crooks whose only purpose is to make as much money as possible. Problems with product quality, poor customer service, and fraudulent financial reports with no admission of guilt paint a very negative picture. The response to this negative picture has been the creation of new rules and tighter controls that now represent a greater risk for organizations who fail to comply with the expected standard of behavior. On the other hand, ethics has become an issue that also positively impacts the business world. This sense of value results in increased commitment and reduced turnover, which means greater profits for the company.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | What factors can make a whistleblower lose legitimacy in the eyes of viewers?

What factors can make a whistleblower lose legitimacy in the eyes of viewers?

If there is evidence that the employee is motivated by the opportunity for financial gain or media attention, or that the employee is carrying out an individual vendetta against the company, then the legitimacy of the employee's whistle-blowing must be questioned.

Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Differentiate between internal and external whistleblowers

Differentiate between internal and external whistleblowers.

Internal whistleblowers are employees who discover misconduct in the workplace and communicate this to their supervisor, who then follows established procedures to address the misconduct within the organization. 

External whistleblowers are employees who discover corporate misconduct and choose to bring it to the attention of external parties, such as law enforcement agencies or the media.


Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Under what condition could whistle-blowing be considered unethical?

Under what condition could whistle-blowing be considered unethical?

Whistle-blowing can be considered unethical if the employee is motivated by financial gain or media attention, or if they carry a vendetta against the company.  In this case the legitimacy of their whistle-blowing must be questioned.  



Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Key Terms

Key Terms - Blowing the Whistle

External Whistle-Blowing:  When an employee discovers corporate misconduct and chooses to bring it to the attention of law-enforcement agencies and/or the media.

Internal Whistle-Blowing:  When an employee discovers corporate misconduct and brings it to the attention of his or her supervisor, who then follows established procedures to address the misconduct within the organization.

Whistle-Blower:  An employee who discovers corporate misconduct and chooses to bring it to the attention of others.



Source: Ghillyer_Business Ethics A Real World Approach 2e