Bhushan is a seasoned sales representative at a major multinational information technology company. Having worked there for several years, he has built strong relationships within the organization, including a close friendship with Manoj, who joined around the same time. In recent months, Manoj confided in Bhushan about some personal financial struggles. Bhushan offered his support as a friend, though Manoj only mentioned he was making risky decisions at work to earn extra money for his family, without fully explaining what those actions entailed.

Unexpectedly, Manoj left the company, leaving Bhushan both surprised and suspicious. Bhushan was assigned to take over Manoj’s sales territories and, during the transition, discovered the significant financial impact caused by Manoj’s actions. After thoroughly reviewing sales transactions and accounting records, Bhushan uncovered evidence of what appeared to be fraudulent activities.

Reflecting on their past conversations, Bhushan realized that Manoj’s financial desperation may have led him to make these unethical decisions. Bhushan now feels a sense of responsibility and regrets not having done more to prevent the situation. While Bhushan is considering disclosing what he knows to the company, he is conflicted because revealing the truth could have severe consequences for Manoj, who was already facing personal challenges.

It is important to note that Manoj’s actions, while inappropriate, did not result in a major financial loss for the company. Despite empathizing with Manoj’s difficult situation, Bhushan is concerned that the issue might be uncovered during an internal audit, which could jeopardize his own position and future career prospects. (200 words)

(b) What options are available to Bhushan? Assess the pros and cons of each.

Roadmap for Answer Writing

Step-by-Step Approach:

1. Introduction

• Briefly introduce the situation Bhushan is facing.
• Explain the dilemma: Bhushan must choose between loyalty to his friend (Manoj), professional integrity, and his responsibility to the company.
• State that the options will be assessed with respect to both personal and professional consequences.

2. Option 1: Avoid Reporting the Matter

• Description of Option: Bhushan decides not to report the fraudulent activities of Manoj, prioritizing their friendship over his professional responsibilities.
• Merits (Pros):
  • Loyalty to Friend: Bhushan demonstrates empathy and loyalty by shielding Manoj from consequences (e.g., losing his job).
  • Small Financial Impact: If the loss is minimal, Bhushan may reason that reporting the issue isn’t worth the potential harm it causes.
  • Personal Relationship: It may preserve the friendship as Bhushan avoids confrontation.
• Demerits (Cons):
  • Compromises Professional Integrity: Bhushan fails to uphold ethical standards by not reporting fraudulent activities.
  • Encourages Unethical Behavior: By not acting, Bhushan could indirectly condone future dishonesty in the workplace.
  • Future Consequences: If the matter is discovered later, Bhushan could face criticism for lack of action, possibly jeopardizing his own career.

Relevant Facts:

• Studies on workplace ethics show that failure to address unethical behavior can lead to greater moral decay in organizations.

3. Option 2: Report to Higher Management

• Description of Option: Bhushan reports Manoj’s fraudulent activities directly to the management, prioritizing his professional responsibilities and ethical standards.
• Merits (Pros):
  • Upholds Professional Responsibility: Reporting the issue ensures Bhushan fulfills his duty to the company and society by preventing further wrongdoing.
  • Ethical Standards: It reflects Bhushan’s commitment to honesty, integrity, and company values.
  • Prevents Financial Loss: The company can take corrective action before further harm is done.
• Demerits (Cons):
  • Damages Personal Relationship: Bhushan risks alienating Manoj, potentially destroying their friendship.
  • Questioned Proactivity: Bhushan may be criticized for not reporting the issue earlier when he first became aware, which can be perceived as a lack of initiative.
  • Adverse Impact on Manoj: Reporting could lead to severe consequences for Manoj, including loss of employment.

Relevant Facts:

• Ethical decision-making in business emphasizes that reporting fraud is part of professional integrity, and failure to do so can lead to greater financial and reputational damage for the company.

4. Option 3: Ask Manoj to Report the Issue Himself

• Description of Option: Bhushan talks to Manoj privately, urging him to take responsibility and report the issue to management. If Manoj refuses, Bhushan would then take action himself.
• Merits (Pros):
  • Balanced Approach: Bhushan demonstrates emotional intelligence by giving Manoj the chance to rectify the situation himself, preserving their friendship.
  • Empathy and Communication: This option allows Bhushan to understand Manoj’s situation and show support, while still urging accountability.
  • Avoids Direct Conflict: By letting Manoj take the lead, Bhushan avoids directly betraying his friend while still ensuring that ethical standards are maintained.
• Demerits (Cons):
  • Risk of Refusal: Manoj may not agree to report the issue, in which case Bhushan still needs to act, potentially damaging the relationship.
  • Potential Delay: If Manoj does not report the issue promptly, Bhushan might still have to intervene, which could reflect poorly on his own judgment.

Relevant Facts:

• The concept of “restorative justice” suggests that individuals who are given the opportunity to correct their own mistakes are more likely to take responsibility and learn from the situation.

5. Conclusion

• After assessing all the options, conclude that the most balanced approach is Option 3—encouraging Manoj to report the issue himself while offering support. This way, Bhushan can maintain his friendship and empathy while also upholding his professional integrity.
• If Manoj refuses, Bhushan can take the necessary steps to report the issue, demonstrating a commitment to both ethical conduct and personal responsibility.

Key Takeaways for the Answer:

• Focus on Ethics: Emphasize the importance of integrity in the workplace, the need to balance personal relationships with professional duties, and the long-term consequences of unethical decisions.
• Real-World Application: Draw on relevant business ethics and decision-making studies to support the analysis.
• Logical Flow: Structure the answer clearly with distinct headings for each option, followed by a thorough evaluation of pros and cons, and concluding with a reasoned decision.