Weighing the Harms and Benefits of Alternative Actions

We would like to think that organizations run their businesses ethically and, for the most part, this is true. However, there may be circumstances when a supervisor asks you to do something illegal or unethical. There are a variety of reasons this could occur including:

Examples of Illegal/Unethical Actions

·         Accounting/auditing irregularities—i.e., fraud.

·         Illegal workplace activity—i.e., destroying data, over-billing, discrimination, sexual harassment.

·         Violation of environmental and safety regulations.

·         Bribery/kickbacks.

·         Theft of assets—i.e., cash, inventory.

·         Using company assets for personal gain or engaging in embezzlement. 

·         Not paying minimum wage.

·         Failing to pay overtime for hours worked over 40 in a week or paying less than time-and-a-half.

·         Requiring employees to work off the clock without pay.

·         Paying employees differently based on race, color, religion, sex, national origin, age, disability, or genetic information.

I’ve limited the list to ten violations recognizing that there are many more and readers may have been affected by other unethical actions in the workplace.

Communicating Within the Organization

If you are asked to do something unethical by your boss, the first thing to do is clarify the situation and the request that is being made. It’s important to be sure you understand what you are being asked to do so you can fully evaluate the possible consequences if you act improperly or go along with illegal activities.

Broadly speaking, you should consider whether your actions will negatively affect the public if you act in the way that your employer expects. By going along with such an action, such as not taking appropriate action if your boss is using company assets as their personal piggybank, the price of a product or service may be that much higher for the public. Obviously, if your boss is sanctioning dumping toxic waste in violation of the Environmental Protection Agency (EPA) rules, the public is harmed.

On the other hand, you should consider whether it is better to work within the organization to improve things internally. If you think your supervisor is open to criticism and change for the better, then staying around may have greater benefits than blowing the whistle.

Blowing the Whistle on Wrongdoing

Blowing the whistle on wrongdoing by one’s supervisor or employer should be the last resort. Here are some things to do before reaching such a decision.

1.      Stop and think about what makes you feel uneasy.

2.      Try to explain your position to your supervisor or, if necessary, someone above the supervisor if they have either dismissed your concerns or taken no action.

3.      If you are unable to change their mind and you are convinced there is an illegal/unethical action going on, keep a record of your actions and communications to protect yourself: To whom did you speak? What were their reactions? What were your thoughts?

4.      Consider your options at this point—remain with the company; leave the company; report the situation externally.

5.      Seek advice from a trusted advisor/family member/friend.

6.      Consider whether your options might lead to retaliation—demotion, pay reduction, being moved to a less attractive job, firing.

7.      Consider how your options might affect you personally and your family.

8.      If internal reporting has not been successful and you haven’t reported the matter to HR, do so now. This will put you on the record about not wanting to go along with the wrongdoing.

9.      If HR can’t resolve the matter to your satisfaction, then the next step is to consider whether you want to remain with the company or quit. At this point, formally consider the benefits and harms of these alternative actions.

10.  Consider whether to go to an employment attorney for advice.

Depending on whether you blow the whistle or not, you may experience physiological reactions— emotional and psychological stress such as loss of sleep, headaches or fatigue. This is normal.

If you do decide to blow the whistle, be sure to follow the prescribed reporting requirements. In some cases, there may be a financial reward, such as under the Foreign Corrupt Practices Act (FCPA) or the Dodd-Frank Financial Reporting Act. Typically, the report would be made by communicating with the SEC.

Remember this: If it seems unethical it probably is.

Posted by Steven Mintz, aka Ethics Sage, on May 13, 2025. You can sign up for his newsletter and learn more about his activities at: https://www.stevenmintzethics.com/.