Truth Telling, Essay Example

The case study is based on the ethics and responsibilities of employees suspecting fraud and customer misleading. The story of Cynthia Cooper shows the considerations, motivations and concerns behind her decision regarding the financial discrepancies at WorldCom. She is a committed employee who loves her job. By taking part in the whistle-blowing she would have risked the reputation of the company, her own and her colleagues’ job as well.

Argument for reporting the discrepancies

Cynthia Cooper is committed to the company and its reputation. The memory of “Bernie Ebbers”, former CEO means a lot for her. She believes in the values and ethics of the previous CEO, and while he is retired, he is still a part of the community. The ethical responsibility and the logical next step for Cynthia would be to prevent the current management from moving away from the original norms and business ethics Ebbers set up. Cynthia comes from a disadvantaged family, and as such, she should not let the company cheat stakeholders, shareholders, who might invest their hard earned money in retirement funds based on the company’s shares. She has a responsibility for the “little people”.

Argument against reporting the discrepancies

While it is important that the truth comes out and the company’s accounts are not tampered with, it might be too great of a responsibility to take on for Cynthia to make an official report. She might end up blaming herself for the loss of hundreds of jobs in the company, not to mention that the reputation of “Bernie Ebbers”, still associated with the firm would be damaged. She might use unofficial channels and seek further assistance, however, she might not want to be accountable for the damage she creates. If the discrepancies come to light, share prices and company prospects would be significantly affected.

References

Mead, E., Werhane, P. (1991)  Truth Telling. Case Study. Cynthia Cooper and WorldCom. General Issues in Business Ethics.