Ethical Implications of Whistleblowing in a Business Setting

This essay delves into the critical aspects of business ethics, focusing on a case study involving unethical practices and whistleblowing. It examines the ethical issues arising from corporate malpractices, particularly the wrongful use of confidential information for competitive advantage. The ess...Read More

RUNNING HEAD: BUSINESS ETHICS 1
Business Ethics
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Business Ethics 2
Contents
Introduction......................................................................................................................................2
Ethical issue in the given scenario...................................................................................................2
Duties of Michael in context of Ethical theories.............................................................................3
Role of Michael’s boss in terms of ethics........................................................................................4
Responsibilities of Michael.............................................................................................................5
Factors affects whistle –blowing and justification for it..............................................................5
Reasons why ethics are important for a business............................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................6

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Introduction
Business Ethics and principles are important for an organization in order to make decision. It is a
principle function that guides an organization in making policies and procedures. The ethical
philosophy in an organization is affecting the reputation, productivity and bottom line of the
business. Ethical behavior is important for an organization in order to ensure employees
integrity and honesty (Osterwalder and Pigneur, 2010). Organizations are focusing on the ethical
code of conduct in order to maintain the standards for quality in their work. This enhances
productivity and quality in order to meet results. A positive and healthy corporate culture
increases the productivity and improves the employee morale. The given case study focuses on
Whistle blowing and ethical issues faced by Michael. The act of whistle blowing has a potential
impact between the personal, organisational and societal spheres. The conflict arises from the
circumstance that one views a whistleblower – as someone sharing knowledge of misconduct
and acting ‘disloyal’ to their organisation (Johnson, Christensen and Kagermann, 2008).
Ethical issue in the given scenario
The given scenario highlights the malpractices carried by a business organization in order to gain
business interest. It is a common practice carried in the business organizations these days.
Corporate malpractice is an unethical conduct carried by the business organization detrimental
for the future interest. The ethical issue is regarding the unethical use of document for meeting

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organizational interest. Corporate malpractices are common to the business organization. With
rising awareness and corporate governance practices, it has become evident to follow ethical
business practices (Zott and Amit, 2010). In the given scenario, there is no particular information
regarding the company policies or regulations to provide direction. Use of information gained
through wrongful mean is unethical, if not downright illegal. By using confidential information
for personal gain comes under the unethical business practices especially Corporate Espionage
where the company tries to obtain trade secret through wrongful mean. Using this confidential
information would certainly give a competitive advantage, but put a question on the ethical
conduct (Chesbrough, 2010).
Duties of Michael in context of Ethical theories
Ethical context in business has increased in the corporate sector. This has created a necessity for
managing the organization by meeting the ethical means. In the given scenario, there is a serious
ethical issue in the organization. In order to meet the organizational interest, the organization is
using wrongful mean to gain competitive advantage. Michael has obligations towards the
company while working upon the task given to him. Ethical dilemma put a person under a
complicated situation. This situation creates problem for the individual and the company while
implementing the policies and procedures. An implementation of ethical theory will help in
understanding the duties of Michael while performing duties (Week, 2000). The ethical egoism
theory is a normative ethical position where an individual work in their own self-interest. Ethical
egoism is a situation where the individual is benefitted from the act. He considers the benefits
derived from the act (Newton, 2017). Ethical egoism does not require moral agents to harm the
interests and well-being of others. In the given situation Michael can use the information for the
company. The impact of using the information will be incidentally detrimental, beneficial, or
neutral on the company. Individualism i considered to be an important aspect in disregarding or
not, as long as it is satisfying the self-interest of the individual. The purpose is to meet the long
term goals for which an individual is fulfilling the short-term desires that can be detrimental to
the self. Ethical egoism endorses selfishness, but it doesn't support foolishness. From the general
context of an individual, use of information can be detrimental for oneself. But considering the
long term consequences, use of information will benefit the organization. However the theory is
regarded as an important parameter while handling the issues (Melden, 2013).

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As per the Egoism theory Michael should not use the informational unethically as this might
affect him later. This theory is based on self-interest. Michael should function by focusing on his
interest. This will be helpful in managing his interest. An unethical act might affect him and his
interest. Hence Michael should avoid any such act that might have a long lasting impact on his
life (Beauchamp, Bowie and Arnold, 2004).
As per the Kant theory, morality is the supreme principle. Any act which is immoral is
considered as unethical as per the theory. In the given scenario, it is ethical from the part of
Michael to do a task that is immoral. Kant theory focuses largely on good and bad. While
considering the impact of an activity that is immoral for an individual. It is completely based on
the moral worth of the act. The given scenario is an example of an immoral act and depicts the
corporate malpractice. From a point of view of an individual the theory focus on doing an
activity with utmost moral perspective. While considering an act it is important to handle the act
for the well-being of the individual and the organization as well (Garriga and Melé, 2004).
Hence it is clear that it is the duty of Michael to act as a Whistle blower in order to reduce the
consequences that are caused due to an unethical activity. It is his duty to bring forward the
unethical practices taking place in the company. Such business practice is not good for the long
term growth of the company. While considering the organizational act it is important to focus on
the well being by ethical means. For gaining long term sustainability it is evident for a business
to avoid such malpractices. Ethical dilemma is difficult for the individual to manage the long
term benefit. It is important for helping the individual in gaining better results while considering
the ethical conduct. There are few acts that are considered to be unethical and hence Michael
should ask his boss to stop such malpractices. These activities might affect him in future date at
the time of scrutiny (Broad, 2014).
Role of Michael’s boss in terms of ethics
Michael boss is unethical here. It is not correct to use the information collected from the
wrongful mean. It is clear that the act is completely unethical for the employees and the company
on a long run. It can be seen from the case that the information collected by him is unethical.
Corporate malpractices are common to the business organization. With rising awareness and
corporate governance practices, it has become evident to follow ethical business practices. Any

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information collected without any proper source is unethical for the company as well the
individual using it. There can be an incidence where the employee might face the consequences
of such act at future date (Dion, 2012).
Firstly, it is unethical to use the confidential information of a competitive company retrieved
through an unethical way. It is the case of corporate espionage. There is a probability that
Michael has collected information through some colleague. Secondly, it is important for the
organization to manage the organizational value. It is important for an individual to follow the
ethical code of conduct. It is mandatory from the point of view of organizational growth and
conduct. This will help in managing organisational goals and task for meeting effective results.
The purpose of the act is to manage the interest of ever individual attached to the organization.
This is important for the managing the organizational goals and maintaining a level of code of
conduct in attaining result.
Responsibilities of Michael
Michael is now aware that the organization is using the unethical information collected from the
competitor. He should act as a whistle blower in order to avoid such incidences. These acts do
have a long term impact on the organization. Advocating whistle blowing is important for the
individual in order to avoid the long term impact. It is important to foster culture of self-
regulation and accountability, management that can help in ensuring staff and business
operations. Whistle blower is ultimately torn in between the employs and the commitment
towards the society. Whistle blowing creates fear in the mind of the people. There is a constant
fear that the employee might have to face the consequences that is caused due to whistle
blowing. In today’s competitive business scenario, it is important to use the whistle blowing
policies in an effective way. This is important for the society. Whistle blowing is important
aspect for the society. It is evident for the business organization in order to manage the work in
the most effective way (Miceli, near and Dworkin, 2013).
Factors affects whistle –blowing and justification for it
It is important for each and every organization to use effective organizational policies fostering
honesty and loyalty. By encouraging this culture, the organization can promote transparent

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culture. The Whistle blowing policies protect the organization against odds. It is through the
whistle blowing policies that the organization these days can gain competitive advantage. A
Transparent and honest organizational culture is important for a company (Davis, 2013). It put
forward a positive image in front of the customers. This helps the employees in managing the
task in order to meet the long term sustainable goals. It is difficult from the point of view of an
employee to act as a whistle blower. There can be potential harm to the whistle blower. This is
why people are avoiding the instances to act as a whistle blower (Henik, 2015).
Reasons why ethics are important for a business
In a competitive business environment it is important for managing the business by following
effective business ethical policies. It is important for the organization in order to manage the long
term organizational sustainable goals. This is important for gaining competitive advantage in
order to deal with the problems. Business ethics create a positive impression in the mind of the
employees. In this way, the employees are able to gain job security that motivates employees. It
creates a positive image in the mind of the investors hence helping in gaining a competitive
advantage. At good corporate governance and ethical behavior is important for gaining
organizational goals (Chesbrough, 2010).
Conclusion
To conclude, it is important for the business organization to follow effective ethical principles.
The ethical issue is regarding the unethical use of document for meeting organizational interest.
Corporate malpractices are common to the business organization. With rising awareness and
corporate governance practices, it has become evident to follow ethical business practices. The
given scenario focuses on the Whistle blowing and duties important for an individual in order to
behave ethically.
References
Beauchamp, T.L., Bowie, N.E. and Arnold, D.G. eds., 2004. Ethical theory and business.
Broad, C.D., 2014. Five types of ethical theory (Vol. 2). Routledge.

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Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning, 43(2), pp.354-363.
Davis, M., 2013. Whistleblowing. The International Encyclopedia of Ethics.
Dion, M., 2012. Are ethical theories relevant for ethical leadership?. Leadership & Organization
Development Journal, 33(1), pp.4-24.
Garriga, E. and Melé, D., 2004. Corporate social responsibility theories: Mapping the
territory. Journal of business ethics, 53(1), pp.51-71.
Henik, E., 2015. Understanding whistle-blowing: A set-theoretic approach. Journal of Business
Research, 68(2), pp.442-450.
Johnson, M.W., Christensen, C.M. and Kagermann, H., 2008. Reinventing your business
model. Harvard business review, 86(12), pp.57-68.
Melden, A., 2013. Ethical theories. Read Books Ltd.
Miceli, M.P., Near, J.P. and Dworkin, T.M., 2013. Whistle-blowing in organizations. Psychology
Press.
Newton, M.T., 2017. A Comparison of Ethical Theories.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Week, B., 2000. Knowledge management and new organization forms: A framework for
business model innovation. Knowledge management and virtual organizations, 2(1), pp.13-27.
Zott, C. and Amit, R., 2010. Business model design: an activity system perspective. Long range
planning, 43(2), pp.216-226.