Chapter 2 Law & Ethics Susan Knight

1. Milton lost because of an at will employment law states that employers have a broad discretion to terminate employees for any reason. 2. If Milton were permitted to win, many corporate officers would be giving out information about companies wrongdoings. They would do this because they would be protected by law and would not be terminated, in a court of law, the employee would win the case along with millions in return. Credibility is at stake for employers.

3. Milton did the correct procedure by bringing the income problem up for discussion. Milton was terminated for wrongful discharge, but in order for that charge to stick in a court of law, he must say that he was asked to break the law, which he denied doing. Therefore, his wrongful discharge was invalid.

The decision to terminate Milton in ethical terms was wrong. Milton knew what IIT was doing was immoral. President John Scott wanted to keep his wrongdoings a secret, so Milton was terminated. 4. A. Enron would have won because Watkins did not break the law or lie for Enron. B. Yes you would win because it was about breaking the law. I think it would have meant something if you were to speak up after the subpoenas were issued in order for those responsible to be charged with the crime.

5. If an employee is stealing from your company, I would think you would praise the other employee for doing something about it. There are many thieves in every company, in which millions are lost every year. If I were a business owner and an employee did whatever he had to do to stop the crime from happening again, I would do nothing but give praise to him or her.

6. I feel that if you are going to be a “whistle-blower”, one should start internally, but if that does not work, the next step would be in my opinion, to go externally. Internally: I would recommend this when it deals with a person and the company. For example, getting terminated. It would be ethically appropriate to blow the whistle and have the SEC involved when millions of dollars are at stake, like Enron. The media should be the last to get involved in my opinion because all the facts must be accurate when going to the media.