E ducation A Congressional Whistleblowers Perspective Dr Mark A Livingston Management vs Ethics I s W histleblowing E thical The whistleblower is ultimately torn between loyalty to their employer or the subject of their revelation and their moral commitment to the law and so ID: 590636
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Business Ethics and Character Education – A Congressional Whistleblower’s Perspective
Dr. Mark A. LivingstonSlide2
Management vs EthicsSlide3
Is Whistleblowing Ethical?
The whistleblower is ultimately torn between loyalty to their employer (or the subject of their revelation) and their moral commitment to the law and society at large.Slide4
TSA Whistleblowers Fault ‘Lord of the Flies’ Culture at Agency.NBC Nightly News
"If you tell the truth in TSA you will be targeted," Dr. Mark Livingston, a program manager with the TSA's office of risk management, told members of Congress. "I call it the Lord of the Flies — either attack or be attacked."Slide5
Blowing the Whistle at TSATransportation Security Administration whistleblowers told members of Congress Wednesday that poor leadership, a lack of oversight, low morale and widespread retaliation has led to a culture of fear at the beleaguered agency.
And all of this ultimately undermines the mission to help keep the nation's travelers safe.Slide6
Congressional Oversight at TSAThe House Oversight Committee is investigating allegations TSA officials gave hefty bonuses to supervisors who ignored security warnings and retaliated against employees who spoke up by reassigning them and giving them negative performance reviews. And all of this ultimately undermines the mission to help keep the nation's travelers safe.Slide7
Whistleblower TestimonyTransportation Security Administration whistleblowers told members of Congress Wednesday that poor leadership, a lack of oversight, low morale and widespread retaliation has led to a culture of fear at the beleaguered agency.And all of this ultimately undermines the mission to help keep the nation's travelers safe.Slide8
Other Whistleblowers Come ForwardDozens of TSA employees have come forward to speak with congressional investigators about abuses of power.Andrew Rhoades, an assistant federal security director for the TSA said he was told to profile Somali-American leaders and was accused by a supervisor of "going native" after attending a meeting at a Minneapolis mosque. Directions to profile members of that community also appeared in his midyear performance review with instructions to vet potential visitors with the agency's field intelligence officer.Slide9
TSA Leadership FailuresThe focus on TSA's practices comes as the agency faces stark criticism for long lines at security checkpoints, high employee attrition rates and allegations of waste, fraud and abuse. In 2015, an inspector general testified that at TSA there are problems with technology, procedure and human errors and that "layers of security were simply missing.“The insular attitude among TSA officials set the stage for malfeasance and back-room dealings, giving obscene bonuses to officials whose departments were in utter failure. Slide10
Why do we even need ethics in business?Ethics are moral principles that guide a person's
behavior
.
These morals are shaped by
social
norms
,
cultural
practices, and religious influences.
Ethical
decision making
is the process of assessing the moral implications of a course of action.
Managers and
leaders
need to be aware of their own ethical and moral beliefs so they can draw on them when they face difficult decisions.
In business, as in government, we face these decisions everyday – and there are consequences.Slide11
It is helpful to identify what ethics is NOT?Ethics is not the same as feelings
. Feelings provide important information for our ethical choices
.
Ethics
is not
religion
. Many people are not religious, but ethics applies to everyone
.
Ethics
is not following the
law
. A good system of law does incorporate many ethical standards, but law can deviate from what is ethical. Law can become ethically corrupt, as some totalitarian regimes have made it.
Ethics
is not following
culturally
accepted
norms
. Some cultures are quite ethical, but others become
corrupt.
Ethics
is not
science
. Social and natural science can provide important data to help us make better ethical choices. But science alone does not tell us what we ought to
do.Slide12
The Ethics of being a WhistleblowerThere is a priceWhistleblowers are rarely celebrated – until well after
.
Strategic Decision Process
The process used affects information acquisition, search, and alternative generation, thereby affecting strategic decision effectiveness and firm performance.
Types of Uncertainty
Professional & PersonalSlide13
Whistleblower – A brief History1970s were notable for cases in which employees who had known of product defects or hazards decided to "swallow the whistle".
As a
result, consumers
and other employees were seriously harmed; and when the information went public, so were the organizations that were damaged by awards in the millions
. (Firestone)
Slide14
Whistleblower – A brief HistoryIn the late 1970s in the wake of the civil rights movement, federal and state laws were enacted to protect employees in private industry, including anti-discrimination legislation to regulate hiring and firing policies. Many of these laws contained provisions forbidding an employer to retaliate against employees for reporting violations to public authorities. Slide15
Whistleblower – A brief HistoryAttitudes toward whistleblowing have evolved considerably during the past 50 years in corporate America, from the early days of the "organization man" ethos where loyalty to the company was the ruling norm, to the present time when public outrage about corporate misconduct has created a more auspicious climate for whistleblowing.
1960s, corporations had broad autonomy in employee policies and could fire an employee at will, even for no reason. Slide16
Character Traits Needed in Business or Government EthicsSix Qualities / Pillars of character that are needed for ethical decisional making:
Trustworthiness
Respect
Responsibility
Fairness
Caring
CitizenshipSlide17
Trustworthiness Be honest Don’t deceive, cheat or steal
Be reliable — do what you say you’ll do
Have the courage to do the right thing
Build a good reputation
Be loyal — stand by your family, friends and countrySlide18
RespectTreat others with respect; follow the Golden Rule Be tolerant of differences Use good manners, not bad language
Be considerate of the feelings of others
Don’t threaten, hit or hurt anyone
Deal peacefully with differences, insults and disagreementsSlide19
ResponsibilityDo what you are supposed to doPersevere: keep on trying!
Always do your best
Use self-control
Be self-disciplined
Think before you act — consider the consequences
Be accountable for your choices Slide20
Fairness Play by the rules Take turns and share
Be open-minded; listen to others
Don’t take advantage of others
Don’t blame others carelesslySlide21
CaringBe kind Be compassionate and show you care
Express gratitude
Forgive others
Help people in need
Play by the rules Slide22
CitizenshipDo your share to make your community betterCooperate
Get involved in community affairs
Stay informed; vote
Be a good neighbor
Obey laws and rules
Respect authoritySlide23
EnronSherron Watkins, a senior finance executive, tried unsuccessfully to get Ken Lay, the CEO, to address her concerns about the irregular nature of the financial engineering which ultimately caused its collapse;Slide24
OlympusWhere the newly appointed CEO, Michael Woodford, discovered that major losses had apparently been concealed from shareholders and confronted the board, only to be fired – Olympus is currently being sued for $
273million
and recently GlaxoSmithKline, where an anonymous whistle-blower reported corrupt sales practices – the subsequent investigation by the board blew up in their faces when the investigator was arrested and GlaxoSmithKline was itself accused of corrupt practices by the authorities. Slide25
GlaxoSmithKlineWhere an anonymous whistle-blower reported corrupt sales practices – the subsequent investigation by the board blew up in their faces when the investigator was arrested and GlaxoSmithKline was itself accused of corrupt practices by the authorities. Slide26
Wells Fargo“At least 5,300 Wells Fargo employees have been fired for ethics violations like setting up illicit accounts without customers’ knowledge to meet sales targets.” Another group of fired employees have filed a lawsuit against Wells Fargo; claiming “that they played by the rules and were punished for it.” They say they remained ethical and refused to create unauthorized accounts and were fired for doing so. “If you weren’t willing to engage in these types of illegal practices, they just booted you out the door and replaced you.” This put a strain on many people who needed these jobs and were unjustly fired.Slide27
Questions