Vanessa
Ethical Conflict:
An Analysis of Resolution Policy
Every day in the workplace, people are confronted with various types of conflict. Some can be overlooked if they are not deemed important to the working relationships of the people involved and will not have an adverse effect on the organization. Some, however, must be handled delicately and with utmost respect for the people and the organization. When there are concerns that someone in the organization is behaving unethically by disclosing confidential information or ignoring the law, it can cause a real dilemma that must be addressed and must not be ignored.
The Institute of Management Accountants (IMA) provides guidelines for the resolution of ethical conflicts (2008). The Institute first recommends following the established policies of the organization for which one works. When those policies do not provide adequate resolution, the IMA recommends three courses of actions.
The first action recommended by the IMA is to “discuss the issue with your immediate supervisor” unless the supervisor is involved. If that is the case, then it is appropriate to raise the concern to the next level of management. In either case, the IMA recommends discussing the concern with someone within the organization who is in a position of authority. The reason for this is that the action could be one that is misunderstood or one for which there is a reasonable explanation. Many times employees do not see the entire picture of a situation and imaginations can allow one to presume something unethical is taking place when in reality it is not.
My personal recommendation is to keep detailed notes of what a person saw that appears to be unethical. Make note of dates and times as well as details of the actions or inactions that cause concern. I would also recommend having a conversation with the person involved directly. Ask questions to get clarification and if unethical behavior is still suspected, confront the person respectfully and indicate that you believe there is an ethical problem. If the person denies the allegation or simply does not care to change their behavior, I would document that conversation and then proceed to IMA’s first recommendation of talking to a supervisor or other person in authority.
If someone is going to bring allegations of improper behavior it is important to have as much detail and exact information as possible. This is where the detailed notes can provide clarification. I would make a copy of the notes and provide them to the supervisor and then document the meeting with the supervisor. All these notes can be used in a court of law to protect oneself and to provide evidence of wrongdoing by another.
Hopefully the conversation with a superior will provide the resolution needed, but when it does not, the IMA recommends “initiating a confidential discussion with an IMA Ethics Counselor” to discuss other potential actions that can be taken. This second conversation can also be with some other “impartial advisor” but must be with someone who can understand the delicate nature of the situation and remain impartial to the organization. I think it is important to discuss this with someone who is in a position to provide real advice and not just serve as a sounding board. It should be someone who understands the nature of the business enough to reason through the improper actions and has an understanding of the law in respect to the organization. This person should be able to provide additional advice on potential courses of action. Continue to document this conversation and any actions taken as a result.
Finally, the IMA recommends consulting ones attorney “as to legal obligations and rights concerning the ethical conflict.” If the first two steps do not provide resolution, then it is time to call a lawyer. In this final step, formal charges may be brought up against the person and also against the organization, especially if the organization turned a blind eye to the situation. This is where those detailed notes will provide evidence for both wrong-doing by the guilty person and also by the organization for not dealing with the situation. The notes will also provide evidence that you did everything in your power to stop the unethical behavior so that you are not implicated as well.
In my opinion, these are the right steps to take in the right order after identifying unethical behavior in an organization. They are meant to be sequential actions to ensure that the suspected behavior is properly vetted before bringing formal charges against someone. I do not believe these steps by the IMA are meant to follow the communications perspective of communicating the most important and memorable aspect of a presentation first. This is not a presentation; rather, it is a checklist of actions to take when suspecting unethical behavior.
At this time, I want to relate my own personal story of this very situation. I worked for a very small company as the assistant to the owner. He had a crew of four people who performed work for customers and I provided the accounting of the work performed and invoiced the customers. My boss told me to invoice Customer A for 60% of the job and Customer B for 70% of the job. When I told him that these amounts did not add up, he told me to do it anyway. I did as I was told because I was the lone provider for my family and could not afford to lose my job. This was not an isolated incident; it continued to happen for months. There was no one up the chain to whom I could report this unethical behavior. I kept copies of the invoices and wrote on my copies that the amounts charged were directed by my boss and wrote the date of his direction to me. I also kept a personal journal where I recorded these instances, my conversations with my boss, and my feelings about the situation. I immediately began looking for another job but it took several months.
About five years after I had moved on from this job, I was contacted by a lawyer for Customer B. They believed they had been wrongfully billed for work and wanted to know if I knew anything. My personal journal and copies of the invoices were submitted as evidence and my former boss ended up in jail for his behavior. Keeping those notes allowed me to protect myself and provided what was needed to incarcerate him for his wrongdoing.
In conclusion, the principles outlined by the IMA are sound. They are sequential steps to take to ensure that the proper authorities are informed of a possible wrongdoing and allow the authorities the opportunity to correct the situation. When that doesn’t work, consulting an outside advisor will provide clear direction on the next steps to take. Finally, consulting a lawyer will protect the person bringing the allegations and ensure that justice is served.
References
Institute of Management Accountants (2008). Resolution of ethical conflict. Retrieved November 27, 2009 from http://www.imanet.org/about_ethics_statement.asp
