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.

(a) What ethical dilemmas does Bhushan encounter?

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

Roadmap for Answer Writing

Introduction

• Begin by summarizing Bhushan’s role as a seasoned sales representative in a multinational IT company with a close friendship to Manoj, who recently left the company under suspicious circumstances.
• Mention Bhushan’s discovery of potential fraudulent activities in the sales transactions, leading to ethical dilemmas as he weighs the responsibility to report the issue against his friendship with Manoj.

(a) Ethical Dilemmas Bhushan Encounters:

• Friendship vs. Professional Duty: Bhushan is torn between his personal relationship with Manoj, his close friend, and his professional responsibility to report unethical behavior that could harm the company and other stakeholders.
• Loyalty vs. Integrity: Bhushan feels loyal to Manoj, who confided in him about his financial struggles, but he also has an obligation to maintain his own integrity and uphold the ethical standards of the organization.
• Confidentiality vs. Transparency: Bhushan is aware that revealing Manoj’s actions could severely affect Manoj’s life, but at the same time, he knows that withholding the truth could lead to greater harm to the company and possibly compromise his own ethical standing.
• Consequences for Manoj vs. Company’s Well-being: Bhushan must balance the potential harm his friend could suffer if exposed with the potential damage the company could experience if fraudulent activities are not disclosed and rectified.

(b) Options Available to Bhushan:

1. Option 1: Disclose the Fraudulent Activities to the Company
   • Pros:
     • Upholds professional integrity and adherence to the company’s ethical standards.
     • Protects the company from further financial loss and potential legal repercussions.
     • Bhushan fulfills his responsibility as an employee to act in the best interest of the organization.
   • Cons:
     • Manoj could face serious consequences, including legal action, loss of reputation, and personal hardship.
     • Bhushan’s relationship with Manoj may be permanently damaged.
     • Bhushan may feel guilty for not helping his friend when he was in need, leading to emotional distress.
2. Option 2: Confront Manoj Privately and Encourage Him to Own Up to His Actions
   • Pros:
     • Bhushan maintains his friendship with Manoj and may be able to support him in making things right, allowing Manoj to take responsibility for his actions.
     • It could potentially lead to a less severe consequence for Manoj, as he could seek to remedy the situation before Bhushan reports it.
     • Bhushan demonstrates support for his friend while still trying to address the issue.
   • Cons:
     • Manoj may refuse to take responsibility or may hide the full extent of his actions, leaving Bhushan in a difficult position.
     • Bhushan might delay or avoid the necessary reporting, leaving the company exposed to further damage.
     • Bhushan could be seen as complicit if Manoj does not act responsibly after the confrontation.
3. Option 3: Seek Advice from a Trusted Colleague or Mentor
   • Pros:
     • Bhushan gets guidance from a neutral party who can offer an objective perspective on the best course of action.
     • It helps Bhushan think through his moral dilemma and the potential consequences of each option.
     • Bhushan may feel more supported and confident in making the right decision.
   • Cons:
     • The third party might not have all the facts or the same relationship with Manoj, potentially offering advice that doesn’t fully consider the personal dimension of the situation.
     • Bhushan may feel conflicted or unsure after receiving outside opinions, leading to indecision or delay in acting.
4. Option 4: Do Nothing and Stay Silent
   • Pros:
     • Bhushan avoids immediate confrontation with his friend and the company, which could feel less stressful in the short term.
     • The situation may resolve itself if the fraudulent activities are not discovered or if Manoj’s actions don’t have long-term consequences.
   • Cons:
     • Bhushan compromises his own ethical standards, failing to act in the best interest of the company.
     • The company may suffer from financial losses or legal issues down the line if the fraud is discovered later.
     • Bhushan risks being seen as complicit in the fraudulent actions if they eventually come to light.
     • Bhushan could feel guilt and regret for not taking action to address the situation.

(c) Approach Bhushan Should Take:

• Choice: The most ethical course of action would be for Bhushan to disclose the fraudulent activities to the company (Option 1), as it aligns with his professional responsibilities and maintains the integrity of the organization.
  • Reasoning:
    • Professional Responsibility: Bhushan’s primary duty as an employee is to act in the best interest of the company. Failing to report fraudulent activities would undermine both his own integrity and the company’s standing.
    • Long-Term Ethical Stance: While reporting the fraud could cause short-term harm to Manoj, it is essential for Bhushan to act in a way that upholds ethical standards. Allowing the fraud to continue or go unaddressed would have longer-term repercussions for the company and its employees.
    • Potential Support for Manoj: Although Bhushan must report the situation, there is still room for compassion. Bhushan could privately reach out to Manoj to offer support or advice once the company has been informed, helping his friend navigate the consequences of his actions.

Relevant Facts (H3 Format):

Fact 1: Bhushan’s Professional Responsibility

• Bhushan is a seasoned sales representative with strong relationships within the company, and he has a professional duty to ensure the company’s resources are not misused or harmed.

Fact 2: Manoj’s Financial Struggles and Risky Decisions

• Manoj confided in Bhushan about his personal financial struggles and risky decisions at work, which could have motivated him to engage in fraudulent activities to earn extra money.

Fact 3: Evidence of Fraudulent Activities

• Bhushan discovered evidence of fraudulent activities during the transition of sales territories, indicating that Manoj’s actions have had a significant financial impact on the company.

Fact 4: Consequences for Manoj

• Revealing the fraud could lead to serious consequences for Manoj, including potential legal actions, loss of his reputation, and further financial struggles. Bhushan is empathetic toward his friend’s personal difficulties.

Fact 5: Bhushan’s Guilt and Regret

• Bhushan feels guilty for not having intervened sooner or helped Manoj avoid making unethical decisions, which adds to his internal conflict about what action to take now.