A Case On Ethical Dilemma, Conflicts of Interest, Universal Truths

and Whistleblowing

Submitted To:
Mamtaj Akter
Associate Professor
Department of Marketing
Jahangirnagar University

Submitted By:
Serial Name ID
1. Pritom Baidya 20221018
2. Kazi Beni Amin Utsha 20221039
3. Mohammad saidur rahman ridoy 20221001
4. Syed Ezaz Ahmed Emon 20213056
5. Tahera Sultana Tutul 20212022
6. Shammy Akter 20212023

EMBA Program
Faculty of Business Studies
Jahangirnagar University
Savar, Dhaka

Date of submission: 27th May, 2023

 Acknowledgment

First, we would like to thank almighty GOD for helping us to move in the direction that leads us
to complete our report. Preparation of this report received assistance, and guidance and took
valuable time from our honorable faculty Mamtaj Akter. We would like to thank our honorable
Course- Teacher Mamtaj Akter, Department of Marketing, and Jahangirnagar University for
providing us with all the guidance and support that we needed most. Finally, we would have to
thank our classmates who also supported us during the preparation of this report and express us
gratitude to everyone involved.

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 Abstract
This case study explores a real-life like situation where an employee faces the ethical dilemma to accept or
forgo his ethical beliefs. He is placed in a situation where he could either turn a blind eye and let things
happen as they are or he could raise his voice for the betterment of a lot of people. Dr. Mitchel works in a
pharmaceuticals company. In the final stages of clinical trial of a medicine he finds evidence that it could
be harmful. Now it rests upon his judgement to whether do something about it or stay put. Medicine and
proper treatment is a basic need for human being. So pharmaceuticals should be very careful about their
products. Any kind of falsification or exaggeration might cause serious harm to the people.

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Contents
Abstract........................................................................................................................................................ 3
Introduction of Concepts ............................................................................................................................ 5
What is Ethics?........................................................................................................................................ 5
What is Business Ethics? ........................................................................................................................ 5
What Are Organizational Ethics? ......................................................................................................... 6
Ethical Theories: ..................................................................................................................................... 6
The Golden Rule ................................................................................................................................. 6
Virtue Ethics - ..................................................................................................................................... 6
Utilitarianism Ethical choices ............................................................................................................ 6
Universal Ethics - ................................................................................................................................ 6
Meaning of Whistle Blowing .................................................................................................................. 6
Whistleblower:......................................................................................................................................... 7
Internal Whistleblowing: .................................................................................................................... 7
External Whistleblowing .................................................................................................................... 8
Ethical Dilemma:..................................................................................................................................... 8
Conflict of Interest: ................................................................................................................................. 8
Case: "The Pharmaceutical Predicament" .............................................................................................. 9
Key Questions:......................................................................................................................................... 9
Answer of the Questions of Case Study .............................................................................................. 10
Analysis of Situation ............................................................................................................................. 11
Conclusion ................................................................................................................................................. 11

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 Introduction of Concepts
What is Ethics?

Derived from the Greek word “ethos”, which means “way of living”, ethics is a branch of
philosophy that is concerned with human conduct, more specifically the behavior of individuals in
society. Ethics examines the rational justification for our moral judgments; it studies what is
morally right or wrong, just or unjust. In a broader sense, ethics reflects on human beings and their
interaction with nature and with other humans, on freedom, on responsibility and on justice. It can
be said that in general, ethics is concerned with human independence when it focuses on the
relationship that exists between humans and the world. This independence is the primary condition
in ethical decision-making and in any objective analysis of the facts. Individuals demonstrate
independence when, in a decision-making process, they choose to free themselves as much as
possible from their conditioning. Insofar as this operation assumes a degree of lucidity that allows
us to judge objectively and to decide what direction to take, it will be understood that making
ethical decisions is difficult.

That is one of the essential principles in the operation of moving from a vertical public
administration, where rules are imposed, to a horizontal decision-making structure that leaves
more room for judgement and accountability on the part of public servants.

What is Business Ethics?

Business ethics is a practice that determines what is right, wrong, and appropriate in the workplace.
Business ethics is often guided by laws, and these principles keep companies and individuals from
engaging in illegal activity such as insider trading, discrimination and bribery. However, other
ethical principles can influence how employees treat one another, corporate social responsibility
and relationships with clients and vendors. The purpose of business ethics is to ensure a consistent
moral attitude within the company, from executive-level management to the new hire. Business
ethics helps to ensure everyone in a workplace is treated with respect, fairness and honesty.

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What Are Organizational Ethics?

Organizational ethics encompass the code of conduct and ethical standards accompany upholds.
These business ethics represent a company’s values: agreed-upon principles that drive a brand’s
work, understanding of itself, and role in the global marketplace. Organizational ethics can define
brand identity and reputation. Stakeholders and higher-ups will maintain professional ethics,
whose specificities and core values will attract certain kinds of workers and people. Organizational
ethics define a level of ethical conduct, which may bend to or work against common business
standards. These ethical principles will vary from business to business and industry to industry.
Still, these values will dictate how workers behave within an organizational culture and react to
internal and external issues.

Ethical Theories:

The Golden Rule - Do unto others as you would have them do unto you.

Virtue Ethics - A concept of living your life according to a commitment to the achievement of a
clear ideal—what sort of person would I like to become, and how do I go about becoming that
person?

Utilitarianism Ethical choices - A concept that offers the greatest good for the greatest number
of people.

Universal Ethics - Actions that are taken out of duty and obligation to a purely moral ideal rather
than based on the needs of the situation, since the universal principles are seen to apply to
everyone, everywhere, all the time.

Meaning of Whistle Blowing:

Whistle blowing is the act of drawing public attention, or the attention of an authority figure, to
perceived wrongdoing, misconduct, unethical activity within public, private or third-sector
organizations. Corruption, fraud, bullying, health and safety violation, cover-ups and
discrimination are common activities highlighted by whistle blowers. Whistle blowers often face
reprisals from their employer, who may suffer reputational damage as a result of the whistle being
blown, or from colleagues who may have been involved in the illicit activities. In some cases,

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reprisals become so severe that they turn into persecution. In some cases, reprisals come from legal
channels, particularly if the whistle has been blown for illegitimate reasons. Protection of

whistleblowers are an important focus for the legal system, as is incentivizing whistleblowing
when there are many reasons stopping employees from doing so. All employers should adopt a
whistleblowing policy that encourages employees to draw attention to wrongdoing or risky
behavior. In the case of legal action being taken against a company as a result of internal
wrongdoing, having and promoting a strong whistleblowing policy may act in part as a legal
defense.

Whistleblower:

A whistleblower is anyone who has and reports insider knowledge of illegal activities occurring
in an organization. Whistleblowers can be employees, suppliers, contractors, clients, or any
individual who becomes aware of illegal business activities. Whistleblower, an individual who,
without authorization, reveals private or classified information about an organization, usually
related to wrongdoing or misconduct. Whistle blowers generally state that such actions are
motivated by a commitment to the public interest.

A whistleblower is a person, who could be an employee of a company, or a government agency,

disclosing information to the public or some higher authority about any wrongdoing, which could
be in the form of fraud.

Internal Whistleblowing:

Most whistleblowers are internal whistleblowers, who report misconduct on a fellow employee or
superior within their company. One of the most interesting questions with respect to internal
whistleblowers is why and under what circumstances people will either act on the spot to stop
illegal and otherwise unacceptable behavior or report it. There is some reason to believe that people
are more likely to take action with respect to unacceptable behavior, within an organization, if
there are complaint systems that offer not just options dictated by the planning and control
organization, but a choice of options for absolute confidentiality.

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External Whistleblowing:

External whistleblowers, however, report misconduct on outside persons or entities. In these cases,
depending on the information's severity and nature, whistle blowers may report the misconduct to
lawyers, the media, law enforcement or watchdog agencies, or other local, state, or federal
agencies. In some cases, external whistle blowing is encouraged by offering monetary reward.

Ethical Dilemma:

Ethical dilemma involves a situation that requires selecting between conflicting values that are
important to the employee or the organization. Ethical dilemmas are situations in which an agent
stands under two (or more) conflicting ethical requirements, none of which overrides the other.
Two conflicting ethical requirements do not override each other if they have the same strength or
if there is no sufficient ethical reason to choose one over the other.

Conflict of Interest:

A situation in which one relationship or obligation places you in direct conflict with an existing
relationship or obligation. Typically, this relates to situations in which the personal interest of an
individual or organization might adversely affect a duty owed to make decisions for the benefit of
a third party. Conflict of interest arises when an individual finds themselves occupying two social
roles simultaneously which generate opposing benefits or loyalties.

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 Case: "The Pharmaceutical Predicament"
Dr. Sarah Mitchell works as a senior researcher in a renowned pharmaceutical company, XYZ
Pharmaceuticals. The company is on the verge of launching a new drug that shows promising
results in treating a widespread and life-threatening disease. The drug has undergone extensive
testing and has received regulatory approval for release.

However, during the final stages of clinical trials, Dr. Mitchell discovers evidence that the drug's
effectiveness has been exaggerated in the company's research reports. The data has been
manipulated to present a more favorable outcome, misleading both the regulatory authorities and
potential patients.

Dr. Mitchell faces an ethical dilemma. On one hand, she recognizes the potential harm that could
result from releasing a drug based on falsified data, putting patients' lives at risk. On the other
hand, she knows that blowing the whistle on her own company may jeopardize her career and
create conflicts of interest, as the success of the drug launch is critical for XYZ Pharmaceuticals'
financial well-being.

Key Questions:

1. What universal truths and ethical principles are at stake in this case?
2. How should Dr. Mitchell navigate the conflict of interest between her professional
obligations and her personal interests?
3. What are the potential consequences of blowing the whistle on XYZ Pharmaceuticals, both
for Dr. Mitchell and the company?
4. What alternatives does Dr. Mitchell have to address the unethical behavior without
compromising patient safety?
5. How can organizations like XYZ Pharmaceuticals establish a culture that encourages
employees to raise ethical concerns internally?

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Answer of the Questions of Case Study

1. Dr. Mitchell can reflect on the universal truth that patient safety and well-being should
always take precedence over personal and corporate interests. She can also consider the
principles of honesty, integrity, and transparency in scientific research.

2. Dr. Mitchell should assess her obligations as a professional and weigh them against the
potential conflicts of interest. She can seek advice from trusted mentors, professional
associations, or legal experts to understand the best course of action.

3. Blowing the whistle on XYZ Pharmaceuticals may have serious consequences for Dr.
Mitchell, including potential retaliation, damage to her reputation, and legal complications.
It may also impact the company's reputation, financial stability, and relationships with
stakeholders.

4. Dr. Mitchell can explore internal channels for reporting the unethical behavior, such as
raising her concerns with her immediate supervisor, the research integrity committee, or an
ethics hotline within the organization. This allows the company an opportunity to
investigate and rectify the issue internally while maintaining patient safety.

Internal Whistleblowing Channels

• Inform Line Manager
• Inform Supervisor
• Inform Top Management
• Hotline Number for Whistleblowing
• Nominated person for Handling the Complaints

5. XYZ Pharmaceuticals should establish clear policies and procedures for employees to
report ethical concerns without fear of retaliation. It is essential to foster an open and ethical
culture where employees are encouraged to speak up and where investigations are
conducted impartially.
Recommendations for XYZ Pharmaceuticals to foster ethical behavior
• Communicate ethical expectations.

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 • Offer ethics training
• Visibly reward ethical acts and punish unethical ones
• Provide protective mechanisms
• Management needs to make sure that everyone understands what is expected of them in
ethics

Analysis of Situation

This case study presents an ethical dilemma where Dr. Mitchell must navigate conflicts of
interest, universal truths regarding patient safety, and the potential consequences of blowing the
whistle. By acting in accordance with ethical principles and considering alternatives to address the
issue internally, Dr. Mitchell can contribute to maintaining integrity in scientific research and
upholding patient welfare. Additionally, organizations must create an environment that values
ethical behavior and provides mechanisms for employees to raise concerns.

Conclusion
The conclusion summarizes the key points discussed in the report, emphasizing the significance
of prioritizing patient safety, the challenges of navigating conflicts of interest and the importance
of establishing an ethical organizational culture. This section provides specific recommendations
based on the analysis conducted throughout the report. Recommendations may include
encouraging Dr. Mitchell to report her concerns internally, XYZ Pharmaceuticals taking prompt
action to investigate the issue, and implementing measures to create an open and supportive
environment for ethical concerns.

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References
1. What is whistleblower? definition of whistleblower, whistleblower meaning. The
Economic Times. (n.d.). https://economictimes.indiatimes.com/definition/whistleblower

2. HarperCollins Publishers Ltd. (n.d.). Universal truth definition and meaning: Collins
english dictionary. Universal truth definition and meaning | Collins English Dictionary.
https://www.collinsdictionary.com/dictionary/english/universal-truth

3. Organization ethics - meaning and its importance. (n.d.).

https://www.managementstudyguide.com/organization-ethics.htm

4. Merriam-Webster. (n.d.). Whistleblower definition & meaning. Merriam-Webster.

https://www.merriam-webster.com/dictionary/whistleblower

5. Ghillyer, A. W. (2021). Business ethics now. McGraw-Hill Education.

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