Discussion

Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.

Also, provide a graduate-level response to each of the following questions:

Explain the employment-at-will doctrine and describe how it is being eroded. Do you think its existence is leading to a healthy or an unhealthy employment environment in the United States? Justify your reasoning.

“Imagine that you are a member of top management at a company that owns several rental properties along the Gulf shore in Louisiana and Alabama; you just learned that an oil drilling platform has exploded and that thousands of barrels of oil are spilling into the Gulf of Mexico. The company responsible has indicated that it could take several weeks to stop the leak.” Prepare a written memo addressing how the company should handle the crisis. Specifically, students should address how they will ensure the company’s ongoing viability and responsibilities to upcoming renters (if any).

Business & Society: Ethics,
Sustainability, and
Stakeholder Management,
11e
Chapter 10: Strategy, Risk, Issues, and
Crisis Management
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1
Icebreaker: The Nature of Crisis
Divide in small groups and discuss: Identify a crisis that has occurred in your life or in the
life of someone you know and try to describe the nature of the crisis.
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2
Chapter Objectives (1 of 2)
By the end of this chapter, you should be able to:
1. Describe and differentiate between the concepts of strategic management and
corporate social policy.
2. Articulate the four major strategy levels and explain enterprise-level strategy, social
entrepreneurship, and the benefit corporation.
3. Explain the strategic management process and the role that sustainability reports and
integrated reports play in the process.
4. Distinguish between risk management, issue management, and crisis management.
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3
Chapter Objectives (2 of 2)
5. Describe the major categories of risk management and some of the factors that have
characterized risk management in actual practice.
6. Define issue management and the stages in the issue management process. How is
issue management a bridge to crisis management?
7. Define crisis management and the types of crises.
8. List and discuss the major stages or steps involved in managing business crises. Why
is crisis communications so important?
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4
Unit 10.1
Strategic Management and Corporate Social Policy
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5
Strategic Management and Corporate Social Policy
Strategic management –
• Refers to the overall management process that strives to identify corporate purpose
and to position a firm to succeed in its market environment.
Corporate public policy –
• Incorporates sustainability as that part of the overall strategic management of the
organization that focuses on the environmental, economic, social, and ethical
stakeholder issues that are embedded in the decision processes of the firm.
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6
Corporate Public Policy
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Discussion Activity 10.1.1
Describe the corporate public affairs function today.
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8
Unit 10.2
Four Key Strategy Levels
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9
The Hierarchy of Strategy Levels
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Four Key Strategy Levels
• Enterprise-level strategy – What is the role of the organization in society? For what do
we stand?
• Corporate-level strategy – In what business(es) should we be?
• Business-level strategy – How should we compete in a given business or industry?
• Functional-level strategy – How should a firm integrate its various subfunctional
activities and how should these activities be related to changes taking place in the
diverse subfunctional areas?
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11
Emphasis on Enterprise-Level Strategy
For what do we stand?
• What is the role of our organization in society?
• How do our stakeholders perceive our organization?
• What principles or values does our organization represent?
• What obligations do we have to society, including to the world?
• What are the broad implications for our current mix of businesses and allocation of
resources?
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12
Manifestations of Enterprise-Level Thinking
• A positive, constructive, sensitive firm response in a public crisis
• The use of:
• Codes of ethics
• Codes of conduct
• Mission statements
• Values statements
• Vision statements
• Policy-oriented codes and statements
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13
Social Entrepreneurship
• Social entrepreneurship has its reason for being a mission of societal value creation.
• The creation of wealth is a means to achieve the goal of creating societal value.
• Social entrepreneurship’s central focus is the alleviation of poverty, but it may address a
range of societal goals, including education, the environment, and the arts.
• The bottom-of-the-pyramid (BOP) is a term used to characterize the largest and
poorest socio-economic group of people, those who live on less than $2/day.
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The Benefit Corporation
• Unlike the traditional corporation, the Benefit Corporation has a broader mission that
includes having a positive impact on society.
• The societal mission does not take a backseat to shareholder wealth maximization.
• The Benefit Corporation offers managers, investors and customers the opportunity to
participate in or patronize businesses that promise to make social responsibility an
important goal.
• 31 states now have laws permitting companies to incorporate as Benefit Corporations.
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15
The Pros and Cons of B Corporation Status
Pros
Cons
• Built-In Commitment
• Lack of Oversight
• Good Publicity
• Legal Uncertainty and Brand Erosion
Investor Wariness
• Protection from Investor Pressures
• Partners with Similar Values
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16
Core Values
• Are the deeply ingrained principles that guide all of a company’s actions and decisions.
• Serve as cultural cornerstones.
• Having a set of core values that are not followed will do no good.
• To be effective, firms need to weave core values into everything they do.
• If a firm’s core values are not upheld, they become hollow, and do more harm than
good.
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17
Unilever Purpose and Principles
• Purpose and Principles
• Always Working with Integrity
• Positive Impact
• Continuous Commitment
• Setting Out Our Aspirations
• Working with Others
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18
Discussion Activity 10.2.1
Which of the four strategy levels is most concerned with social, ethical, or public issues?
Discuss the characteristics of this level.
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Discussion Activity 10.2.2
What is social entrepreneurship and how is it related to the bottom of the pyramid
(BOP)?
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20
Unit 10.3
The Strategic Management Process
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21
The Strategic Management Process and Corporate
Social Policy
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The Porter and Kramer Framework
Type of Intersection –
• Generic Social Issues – Social issues not material to long-term competitiveness.
• Value Chain Social Impacts – Normal operations that significantly affect society.
• Social Dimensions of Competitive Context – Social issues that affect the drivers of a
company’s competitiveness.
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23
The Sustainability Report in the Context of Strategic
Control
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Discussion Activity 10.3.1
Identify and explain the steps involved in the strategic management process.
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Discussion Activity 10.3.2
Why are integrated reports increasing in popularity?
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Discussion Activity 10.3.3
What is the difference between integrated reporting and a social performance report?
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Unit 10.4
Public Affairs as a Part of Strategic Management
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Strategic Management Process
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29
Public Affairs as a Part of Strategic Management
• Public Affairs grew in the U.S. because of:
• The growing magnitude and impact of government.
• The changing nature of the political system.
• The recognition by business that it was being outflanked by interests counter to its
own.
• The need to be more active in politics outside traditional community-related
aspects.
• The public affairs function took on new meaning during the COVID-19 pandemic.
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30
Unit 10.5
Risk, Issue, and Crisis Management
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31
Risk, Issue, and Crisis Management
• With little government oversight, the consumer is forced to rely on businesses to act
responsibly.
• But such tragedies, and the financial scandals of many corporations, continue to erode
consumer trust in businesses.
• Major external social events not caused by business also affect businesses and firms
must prepare to deal with them.
• No company is immune to the threat of a crisis, but few prepare.
• Managerial decision-making processes should include Risk Management, Issue
Management, and Crisis Management.
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32
Relationships Between Risk, Issue, and Crisis
Management (1 of 2)
• Differentiating between these 3 is difficult. Many product managers cannot
differentiate between “risks” and “issues,” which has led them to be labeled the
Siamese twins of public relations.
• The Issue Management Council definitions:
• Issue – A gap between a firm’s actions and stakeholder expectations.
• Risk – A potential issue that may or may not occur.
• Crisis – An issue that has escalated to a critical state.
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33
Relationships Between Risk, Issue, and Crisis
Management (2 of 2)
• Goal: To be effective, risk, issue and crisis management must close the gap between the
firm’s situation and its stakeholders’ expectations.
• Many of the crises firms face today arise out of issue categories they are monitoring
and prioritizing through issue management systems.
• Risk Management may keep issues from arising.
• Effective issue management may enable the firm to avoid a crisis, or minimize its
impact, and is vital to post-crisis management.
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34
Unit 10.6
Risk Management
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35
Risk Management (1 of 2)
• Risk management concerns potential issues; it addresses an issue that has not yet occurred,
and tries to keep the issue from arising.
• A “rules” approach to risk management can help prevent internal risks, but not those that stem
from firm strategy or risks in the external environment.
• A new framework for Risk management divides it into three categories:
• Preventable risks – internal risks that offer no strategic benefit (BP’s coffee lids).
• Strategic risks – risks taken to achieve greater returns (BP’s deep drilling).
• External risks – external risks that cannot be controlled (natural disasters and economic
shocks).
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36
Risk Management (2 of 2)
• Sustainability involves living in the present in a way that does not compromise the
future.
• Risk Management involves taking action today that will mitigate or prevent a problem
that could arise in the future.
• Both are concerned with the future consequences of present-day actions.
• Risk-shifting may damage the sustainability of others.
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37
Unit 10.7
Issue Management
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38
Issue Management
• A process by which organizations:
• identify issues in the stakeholder environment,
• analyze and prioritize them in terms of their relevance to the organization,
• plan responses to the issues, and then
• evaluate and monitor the results.
• It is helpful to think of issue management in connection with sustainable strategic
management process, enterprise-level strategy, corporate public policy, and
integrated reporting.
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39
Issue Categories
Food, Beverage, and Products
Health-Related Issues
Corporate Fraud and Ethics
Crises
Tyson and Pilgrim’s Pride: Pled guilty to price
fixing and bid-rigging chicken/broiler meat
(2020–2021)
Chipotle: E. coli and norovirus
outbreaks closed stores nationwide (2015–2016)
Horsemeat Scandal in the United
Kingdom: Millions of burgers and beef products
recalled across Europe for containing horsemeat
(2013)
Peanut Corporation of America: Over 125
varieties of products recalled due to salmonella
contamination (2008–2009)
Taco Bell: Outbreak of E. coli closed outlets
nationwide (2006)
Coca-Cola and Pepsi: Allegations that soft drinks
in India contained pesticide residue (2004–2007)
Crises
COVID-19: The largest pandemic
to affect the world since the 1918
influenza epidemic (2019–2021)
Theranos: CEO Elizabeth Holmes
charged with fraud and conspiracy
for marketing blood testing devices
that did not work and gave false
information (2020–2021)
U.S. National Football League:
Investigation into head and brain
injuries from occupational hazard of the sport
(2016)
Ebola: The largest outbreak of Ebola in history,
beginning in West Africa, but with multiple
countries affected (2014)
H1N1: A possible flu pandemic led to crises for
companies and questions of how to treat
employees (2009)
Crises
Purdue Pharmaceuticals: Pled guilty to charges
of fraud and kickback conspiracies in marketing
and sales of opioids (2020–2021)
Valeant Pharmaceuticals: Accounting fraud and
price gouging (2015–2016)
Volkswagen: Guilty of “diesel dupe”
with deceptive emissions testing
software (2015–2016)
Turing Pharmaceuticals: CEO Shkreli found guilty
of price gouging the drug Daraprim (2015)
Bernie Madoff: Ponzi scheme cost
major foundations millions of dollars
jeopardizing critical medical research (2008–
2009)
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40
Model of Issue Management Process
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Issue Definition
• A gap between what stakeholders expect and what the firm is doing.
• The gap typically involves debate, controversy, or differences of opinion that must be
resolved.
• At some point, the organization must make a decision on the matter, but that does not
mean the issue is resolved.
• Once an issue becomes public, its resolution becomes increasingly more difficult.
• Issues are ongoing, and require ongoing responses.
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42
Analysis of Issues
• Who (which stakeholder) is affected by the issue?
• Who has an interest in the issue?
• Who is in a position to exert influence?
• Who has expressed opinions on the issue?
• Who ought to care about the issue?
• To help with issue analysis: Who started the ball rolling? (Historical view)
• Who is now involved? (Contemporary view)
• Who will get involved? (Future view)
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43
Ranking or Prioritization of Issues
• Two essential questions –
• How likely is the issue to affect the organization?
• How much impact will the issue have?
• Once these questions are answered, it is necessary to prioritize them as to their
importance or relevance to the organization.
• Those listed at the top will receive the most attention and resources; those at the
bottom may be removed from consideration.
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44
Other Issues: Ranking Techniques
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Formulation and Implementation of Response
Formulation –
The response design process.
Implementation –
• The action design process: Clarity of the plan, resources needed to implement , the
plan, top management support, organizational structure, technical competence, timing.
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Evaluation, Monitoring, and Control
• Companies should continually evaluate the results of their responses to issues.
• Ensure that actions are kept on track.
• Includes careful monitoring of stakeholder opinions.
• A form of stakeholder audit (similar to a social audit) can be used.
• Information from this stage helps firms to make adjustments to the process as needed.
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47
Issues Development Process
• The growth process or life cycle of an issue helps management recognize when an
event or trend is becoming an issue.
• The process has four stages:
• Felt need
• Media coverage
• Leading political jurisdictions
• Regulation or litigation
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Issue Development Life Cycle Process
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Discussion Activity 10.7.1
Which of the major stages in the issue management process do you think is the most
important? Why?
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Discussion Activity 10.7.2
Following the approach presented in Figure 10-7, identify a new issue category not listed
in Figure 10-7.
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Unit 10.8
Crisis Management
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Crisis Management
• A crisis can rip the foundation of an organization to shreds if top management does not
respond:
• quickly
• decisively, and
• effectively
• A strong and effective response can strengthen an organization in the long run.
• Best example: Southwest 1380 flight accident in April 2018.
• Less compelling examples: Government handling of Malaysian flight MH370 in April
2014; Boeing 737 MAX series crashes in 2018 and 2019.
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The Nature of Crises
There are many definitions of crisis; here are two:
• A crisis is an extreme event that may threaten your very existence. At the very least, it
causes substantial injuries, deaths, and financial costs, as well as serious damage to
your reputation.
• An organizational crisis is a low-probability, high-impact event that threatens the
viability of the organization and is characterized by ambiguity of cause, effect, and
means of resolution, as well as by a belief that decisions must be made swiftly.
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54
Types of Crises
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Five Practical Steps in Managing Crises
• Identifying areas of vulnerability
• Develop a plan for dealing with threats
• Forming crisis teams
• Simulating crisis drills
• Learning from experience
Effective crisis management requires tailoring a program to a firm’s industry, business
environment and crisis management experience.
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Ten Steps of Crisis Communication
• Identify your crisis communication team.
• Identify key spokespersons, authorized to speak for the organization.
• Train your spokespersons.
• Establish communications protocols.
• Identify and know your audience.
• Anticipate crises.
• Assess the crisis situation.
• Identify key messages to communicate to key groups (speak first to internal stakeholders).
• Decide on communication methods.
• Be prepared to ride out the storm.
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Discussion Activity 10.8.1
Identify several examples of “crisis” that have occurred in recent years under each issue
category.
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58
Summary (1 of 2)
• Describe and differentiate between the concepts of strategic management and
corporate social policy.
• Articulate the four major strategy levels and explain enterprise-level strategy, social
entrepreneurship, and the benefit corporation.
• Explain the strategic management process and the role that sustainability reports and
integrated reports play in the process.
• Distinguish between risk management, issue management, and crisis management.
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Summary (2 of 2)
• Describe the major categories of risk management and some of the factors that have
characterized risk management in actual practice.
• Define issue management and the stages in the issue management process.
• Define crisis management and the types of crises.
• List and discuss the major stages or steps involved in managing business crises.
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60
Business & Society: Ethics,
Sustainability, and
Stakeholder Management,
11e
Chapter 11: Employee Stakeholders
and Workplace Issues
Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management; 11th Edition. © 2023 Cengage. All Rights Reserved. May not be
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1
Icebreaker: Workplace Troubles
Divide in small groups and discuss: Share with your group your biggest or most curious
workplace issues, either from your current employment or past jobs.
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2
Chapter Objectives (1 of 2)
By the end of this chapter, you should be able to:
1.
Discuss the implications of new workplace trends.
2.
Outline the characteristics of the new social contract between employers and
employees.
3.
Explain the concept of employee engagement and the actions companies are taking
to make the workplace friendlier.
4.
Explain the employee rights movement and its underlying principles.
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3
Chapter Objectives (2 of 2)
5.
Describe what is entailed with the right not to be fired without cause and discuss the
employment-at-will doctrine and its role in employee rights.
6.
Discuss the right to due process and fair treatment.
7.
Elaborate on the freedom-of-speech issue and whistleblowing.
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4
Unit 11.1
The New Social Contract
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5
The New Social Contract (1 of 2)
• The social contract between organizations and workers continues to evolve, and is
different from contracts of the past.
• Fifty years ago, the trend was that employees stayed in the same job in the same
company years and those companies rewarded employees’ loyalty by offering job
stability, a decent wage, and good benefits.
• The workforce today is shaped by the gig economy, or the “1099 economy.”
• They are more mobile, less loyal, and more diverse.
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6
The New Social Contract (2 of 2)
• They seek:
• Competitive pay
• Benefits
• Opportunities for professional growth
• Millennials and Gen Z:
• Experiences of job loss and/or pay cuts.
• Interest in financial security.
• High value on work/life balance.
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7
The Changing Social Contract between Employers
and Employees
Historical Social Contract
New Social Contract
Job security; long, stable career and
employment relationships
Few tenure arrangements; jobs constantly “at risk”; employment as long as you
“add value” to the organization
Lifetime careers with one employer
Fewer life careers; changing employer common; careers more dynamic
Stable positions/job assignments
Temporary project assignments
Loyalty to employer; identification with Employer
Loyalty to self and profession; diminished identification with employer
Paternalism; family-type relationships
Relationships far less warm and familial; no more parent–child relationships
Employee sense of entitlement
Personal responsibility for one’s own career/job future
Stable, rising income
Pay that reflects contributions; pay for “value added”
Job-related skill training
Learning opportunities; employees in charge of their own education and updating
Focus on individual job accomplishments
Focus on team building and projects
Personal face-to-face communication
Communication through technologies
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8
Discussion Activity 11.1.1
Rank the various changes that are occurring in the workplace in terms of their
importance to the growth of the employee rights movement. Briefly explain your ranking.
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9
Discussion Activity 11.1.2
Discuss the new gig economy and the implications for employee engagement.
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10
Discussion Activity 11.1.3
What changes in employees in the workplace will be brought about by organizations
becoming digital enterprises? What changes will be brought about as a result of the
worldwide pandemic?
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11
Unit 11.2
Employee Engagement
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12
Employee Engagement
• Supported through mentoring programs, career development training, and annual
employee surveys.
• Companies see less turnover, less shrinkage, less absenteeism, fewer safety incidents,
and fewer quality defects.
• Thanks to technology and Big Data, it is easier to identify key employee issues.
• Employee engagement suffered its most challenging time during the height of the
COVID-19 pandemic.
• Yet, employee engagement increased to 39 percent by January 2021.
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13
Unit 11.3
The Employee Rights Movement
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14
The Employee Rights Movement
• Public sector employees have constitutional protections. We focus on employees in the
private sector, not subject to constitutional control because of the concept of private
property.
• By contrast, individuals and private organizations are free to use their property as they
desire.
• Although labor unions have been successful in improving pay, benefits, and working
conditions, they have not been as active in pursuing civil liberties.
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15
The Meaning of Employee Rights
• We approach the topic from the perspective of the Principle of Rights, justifiable claims
that utility cannot override.
• Legal rights:
• Sources of employee rights • Statutory rights
• Collective bargaining rights
• Enterprise rights
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16
Unit 11.4
The Right Not to Be Fired without Cause
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17
Three Models of Management Morality and Their
Orientations toward Employee Stakeholders
Model of Management Morality
Orientation toward Employee Stakeholders
Moral Management
Employees are a human resource that must be treated with dignity and respect.
Employees’ rights to due process, privacy, freedom of speech, and safety are maximally considered in
all decisions. Management seeks fair dealings with employees. The goal is to use a leadership style,
such as consultative/participative, that will result in mutual confidence and trust. Commitment is a
recurring theme.
Amoral Management
Employees are treated as the law minimally requires. Attempts to motivate focus on increasing
productivity rather than satisfying employees’ growing maturity needs. Employees are still seen as
factors of production, but a remunerative approach is used. The organization sees self-interest in
treating employees with minimal respect. Organization structure, pay incentives, and rewards are all
geared toward short- and medium-term productivity.
Immoral Management
Employees are viewed as factors of production to be used, exploited, and manipulated for gain of
individual managers or the company. No concern is shown for employees’ needs/rights/expectations.
Managers pursue a short-term focus in a coercive, controlling, and alienating environment.
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18
The Right Not to Be Fired without Cause
• Good cause norm • The belief that employees should only be discharged for good reasons.
• This belief prevails in the United States today, though it conflicts with reality.
• Employment-at-will doctrine • The reality is that the relationship between employer and employee is voluntary
and can be terminated at any time by either party.
• The central issue is changing views of the employment at will doctrine.
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19
Legal Challenges to Employment-at-Will
• Public policy exceptions: Protects employees from being fired for refusal to commit
crimes or for exercising legal rights.
• Implied contract exception: Protects employees who they believe have contracts or
implied contracts.
• Good faith principle: Employers may lose lawsuits to former employees if they cannot
show that employees had opportunities to improve their performance before
termination.
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20
Moral and Managerial Objections to EmploymentAt-Will
• Employees deserve respectful treatment.
• Employees do not have the option of being arbitrary or capricious with employers.
Employers should bear the same responsibility.
• Employees are expected to be trustworthy, loyal, and respectful with employers.
Employers should show employees the same consideration.
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21
Dismissing an Employee with Care
• Fire employees in a private space.
• Be mindful of employees’ logistics.
• Preserve the employee’s dignity.
• Choreograph the notification in advance.
• Use transparent criteria for layoffs.
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22
What NOT to do When Terminating an Employee
• Don’t fire on a Friday.
• Don’t say that downsizing is finished.
• Don’t terminate an employee via e-mail.
• Stick to the topic and avoid platitudes.
• Don’t rush through the meeting.
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Discussion Activity 11.4.1
Explain the employment-at-will doctrine and describe how it is being eroded. Do you
think its existence is leading to a healthy or an unhealthy employment environment in
the United States? Justify your reasoning.
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24
Unit 11.5
The Right to Due Process and Fair Treatment
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25
The Requirements of a Due Process System
• It must be a procedure; it must follow rules; it must not be arbitrary.
• It must be visible and well-known so that potential violators and victims are aware of it.
• It must be predictably effective.
• It must be institutionalized – a relatively permanent fixture in the organization.
• It must be perceived as equitable.
• It must be easy to use.
• It must apply to all employees.
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26
Alternative Dispute Resolution (ADR)
Open-Door Policy
Hearing Procedure
The Ombudsman
The Peer Review Panel
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27
Concerns with the Open-Door-Policy
• The process is closed.
• One person is reviewing what happened.
• There is a tendency for one manager to support another manager’s decision.
• A hearing procedure helps open up the process because employees can elect
representation.
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28
The Ombudsman
• An ombudsman is neutral and promises confidentiality.
• An ombudsman can handle employee concerns in a way that keeps the problem from
getting out of hand.
• The procedure has been used in Sweden since 1809 to curb abuses by government
against individuals.
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29
Factors for a Successful Peer Review Panel
• Be sure that people involved in the process are respected members of the organization.
• Committee members should be elected rather than appointed.
• They must receive training in dispute resolution, discrimination, fairness, legalities, and
ethics for everyone involved.
• Representatives of both employees and management should be involved in decisionmaking.
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30
The Future of ADR
• The use of ADR is growing because of time and cost savings over litigation.
• But some employers require new hires to sign contracts waiving their right to sue their
employer in favor of mandatory arbitration.
• Arbitration: A neutral party resolves a dispute between two or more parties and the
resolution is binding.
• Mandatory arbitration: The parties must agree to arbitration prior to any dispute
occurring, and be bound.
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31
Discussion Activity 11.5.1
In your own words, explain the right to due process. What are some of the major ways
management is attempting to ensure due process in the workplace?
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32
Discussion Activity 11.5.2
If you could choose only one, which form of alternative dispute resolution would be your
choice as the most effective approach to employee due process? Explain.
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33
Unit 11.6
Freedom of Speech in the Workplace
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34
Freedom of Speech in the Workplace
• While the U.S. Constitution protects an individual’s speech from government
interference, this does not apply to an employer, and some forbid conflicting political
views.
• Whistle-Blower: An organization member who discloses illegal, immoral, or illegitimate
practices under the control of their employers, to persons or organizations that may be
able to effect action.
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35
Whistle-Blowing
Key Elements in the Process
• The whistle-blower
• The act oar complaint
• The party to whom the complaint is made
• The organization against which the complaint is made
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36
Two Views of Employee Responsibility in a Potential
Whistle-Blowing Situation
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A Checklist to Follow Before Blowing the Whistle
• Is there any alternative to blowing the whistle?
• Does the proposed disclosure advance public interest rather than personal or political
gain?
• Have you thought about the outcomes of blowing the whistle for yourself and your
family?
• Have you identified the sources of support, both inside and outside the organization,
on which you can rely during the process?
• Do you have enough evidence to support your claim?
• Have you identified and copied all supporting records before drawing suspicion to your
concerns?
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38
Whistle-Blowers Get the Hollywood Treatment
Movie
The Report (2019)
Stars
Adam Driver, Annette
Bening
Dark Waters (2019)
Mark Ruffalo
The Snowden Files
(2016)
The Whistleblower
(2010)
Joseph Gordon-Levitt
The Informant! (2009)
Matt Damon, Scott Bakula,
Joel McHale
The Insider (1999)
Russell Crowe, Al Pacino,
Christopher
Plummer
Rachel Weisz, Vanessa
Redgrave
Story
The movie follows Senate staffer Daniel Jones who
led an investigation into the CIA’s use of torture in
the wake of 9/11
Lawyer takes on decades-long battle with DuPont
over the company’s environmental contamination
and cover-up
Chronicles the life of NSA whistle-blower Edward
Snowden
Nebraska police officer serves as peacekeeper in
post-war Bosnia and blows whistle on U.N. cover-up
of sex trafficking scandal
Inspiration
Directed by Scott Burns; an investigation into CIA’s
Detention and Interrogation Program
Mark Whitacre, an employee at Archer Daniels
Midland (ADM), blows the whistle on the lysine
price-fixing conspiracy
A successful scientist is fired from a major tobacco
company for taking a principled stand. 60 Minutes is
due to report the story, but they cave to corporate
pressure.
This dark comedy is based on The Informant, a book by
journalist Kurt Eichenwald.
Based on real-life lawyer Robert Bilott who took on the
big chemical company
Directed by Oliver Stone and titled after the book by
Guardian journalist Luke Harding
Based on the experiences of Kathryn Bolkovac who
worked with the U.N. International Police at a U.K.
security company
Based on a Vanity Fair article, “The Man Who Knew Too
Much.” The movie tells the true story of Jeffrey Wigand,
who was fired from Brown & Williamson tobacco
company.
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39
Consequences of Whistle-Blowing
• 4800 employees reported retaliation • 64% – exclusion from decisions & work activities
• 62% – cold shoulder from coworkers
• 62% – verbal abuse from management
• 56% – almost lost job
• 55% – not given promotion or raise
• 51% – verbal abuse from coworkers
• 46% – cut in hours or pay
• 44% – relocated or reassigned
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40
Government Protections for Whistle-Blowers
• The most important laws:
• 1978 Civil Service Reform Act
• 1989 Whistleblower Protection Act
• Sarbanes-Oxley Whistle-Blower Protections
• Michigan Whistle-Blowers Protection Act of 1981
• Defend Trade Secrets Act
• FBI Whistleblower Protection Enhancement Act
• False Claims Act
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41
Federal Laws with Whistle-Blower Protections
Affordable Care Act
Asbestos Hazard Emergency Response Act
Clean Air Act
CERCLA (Superfund Act)
Commercial Motor Vehicle Safety Act
Consumer Product Safety Act
Department of Defense Authorization Act
Dodd–Frank Wall Street Reform and Consumer Protection
Act
Energy Reorganization Act
Fair Labor Standards Act
FBI Whistleblower Protection Enhancement Act
FDA Food Safety Modernization Act
Federal Mine Safety and Health Act
Federal Railroad Safety Act
Federal Water Pollution Control Act
International Safe Container Act
Longshore and Harbor Workers’ Compensation Act
Migrant and Seasonal Agricultural Worker Protection Act
Motor Vehicle Safety Whistleblower Act
Moving Ahead for Progress in the 21st Century Act
National Transit Security Act
Occupational Safety and Health Act
Pipeline Safety Improvement Act
Safe Drinking Water Act
Sarbanes–Oxley Act
Seaman’s Protection Act
Solid Waste Disposal Act
Surface Mining and Control Act
Toxic Substances Control Act
Wendell H. Ford Aviation Investment and Reform for the 21st
Century Act
Source: U.S. Department of Labor Occupational Safety and Health Administration, “The Whistleblower Protection Program,” https://www .whistleblowers.gov/, accessed April 20,
2021.
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42
Management Responsiveness to Whistle-Blowing
• Whistle-blowing occurs after normal, less dramatic channels of communication have
failed.
• To encourage open communications • Managers must be clear that they invite and accept suggestions.
• Managers must refute assumptions and organizational myths that discourage
communication.
• Managers should tailor rewards so that employees share more directly in cost
savings or sales increases from ideas they offer.
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43
Discussion Activity 11.6.1
How do you feel about whistle-blowing now that you have read about it? Are you now
more sympathetic or less sympathetic to whistle-blowers? Explain.
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44
Discussion Activity 11.6.2
What other steps can management take to be responsive to potential whistle-blowing
situations?
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45
Discussion Activity 11.6.3
What is your assessment of the value of the False Claims Act? What is your assessment of
the value of the whistle-blower protection?
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46
Summary (1 of 2)
• Discuss the implications of new workplace trends.
• Outline the characteristics of the new social contract between employers and
employees.
• Explain the concept of employee engagement and the actions companies are taking to
make the workplace friendlier.
• Explain the employee rights movement and its underlying principles.
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
47
Summary (2 of 2)
• Describe what is entailed with the right not to be fired without cause and discuss the
employment-at-will doctrine and its role in employee rights.
• Discuss the right to due process and fair treatment.
• Elaborate on the freedom-of-speech issue and whistleblowing.
Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management; 11th Edition. © 2023 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
48