Case Study: Ethical Dilemmas in Financial Misconduct at Red Cross

This case study presents an ethical dilemma faced by Mr. James, an employee at the Australian Red Cross. Mr. James discovers financial misconduct within the organization involving his manager, Dr. Richard, who threatens him to remain silent. James struggles with the decision to either expose the tr...Read More

Ethics and Professional Practice

Ethical Dilemma
 Ethics are moral principles that governing the behavior
of people to conduct a certain activity.
 Ethical Dilemma happens when the decision to be
made is challenging to get the best one.
 It applies when there are a consequences in both ways
of decision made.

 Mr. James is working with Australian Red Cross services.
 He has worked with this company for 4 years now.
 He been searching for job for more than 5 years without success.
 This is good luck for him to secure this job.
 His family depends on him for living.
 He has been working cooperatively with other staffs.
 He has been promoted to financial department.
Case of Mr. James

 Unfortunately, a new manager is transferred to his organization.
 His name is Dr. Richard from other Australian organization.
 Within four months the organization has faced various financial
crises.
 There is a misuse of funds within the organization.
 This has led to poor performance of organization.
 James has been put under pressure over this.
Cont’s…

 James is aware of who is stealing organizational funds.
 There is ongoing investigation.
 Dr. Richard is as well aware of what is going on.
 He uses his power to threaten James upon revealing this.
 James is aware his manager has power to fire him.
 Dr. Richard has sent threatening message to James.
Ethical dilemma in the case Mr. James
case

 Now James is under dilemma of what to do.
 He fear to say the truth and lose the job.
 Now James cannot reveal manager is doing.
 Again he is not happy on how manager is
stealing from the organization.
 He want to prove his innocence to stakeholders.
Cont’…

 Some staff members are accusing him guilty.
 On other hand his manager is defending him.
 This is because he is aware of what is happening.
 James is given 3 days to write a report on money
is spent.
 This is so stressful and challenging to James.
Cont’…

Investigation is done regarding this issue.
Financial accounts have been blocked to prevent an alteration.
Mr. James is summoned by investigation team.
James is under dilemma of either say true or follow demands of
manager.
Some stakeholders are sensing his innocence.
 Mr. James seems more stress but not guilt although some are
accusing him.
Organizational accounts are investigated for the truth to be seen.
Ethical decision making raised by the
stakeholders in the case

 James is summoned by private investigators.
 He decides to tell the truth about the matter.
 He explains how manager has been stealing from
the organization accounts.
 James reveals the threats he has been receiving
from the manager.
 He provides the evidence on how many has
been stolen.
Cont…

 Through investigation all what James said was
true.
 Dr. Richards, is found guilty by the court of law.
 He has stolen over $200 million
 He has repaid the stolen and plus 40% fine.
 Fortunately, James is still retained in the job for
being honesty.
Outcomes Of he Ethical
Decision