Scenario 1
James works in the accounting department of a large firm.While going over the books for the past several months, James notices that someone has altered the figures to increase earnings by several thousands of dollars. He suspects that the errors, which are in the company’s favor, are too consistent to have been honest mistakes. He knows that he should report his findings through the company’s ethics hotline. However, he worries that doing so will jeopardize his job security and reputation with the company.
Scenario 2
Mary owns a small toy manufacturing company. One of her employees has noticed that one of the pieces on the most popular toy the company manufactures can detach from the toy. This detachment could pose a potential choking hazard to young children who play with the toy. No customers have yet reported problems with the toy. Mary wonders if she should report the potential hazard before anyone gets hurt. However, the recall would cost her company money and result in loss of sales during the busy Christmas season.
Pleease provide an examination of both the positive and negative consequences of the decision, including the trade-offs that the leadership of the organization made in making their decision.