Question

The Consequences of Whistle-Blowing

This activity is important because, as a manager, you need to reinforce positive behaviors. Whistle-blowing is considered an “especially ethical” behavior because it exceeds normal standards of morality. The techniques of reinforcement theory can be used to encourage behaviors such as whistle-blowing, and may help explain why people may or may not want to report ethical violations.

The goal of this exercise is to demonstrate your understanding of reinforcement theory by reading a case and responding to questions.

Read the case about famous whistle-blowers and answer the questions that follow.

In 2002, the Sarbanes-Oxley Corporate Reform Act was passed, protecting whistle-blowers from retribution by management such as harassment, suspension, demotion, or firing. If individuals retaliate against the whistle-blower, they can face criminal charges. Fifteen years later, whistle-blowing and the study of ethics have become a critical part of business school education. A good leader should encourage employees to report unethical behavior, but this is not an easy task.

Another important event in 2002 was Time Magazine naming three whistle-blowers as ‘Persons of the Year’—FBI attorney Coleen Rowley, Enron vice president Sherron Watkins, and World Com accountant Cynthia Cooper. Their stories suggest what anticipated consequences might encourage or discourage whistle-blowing behaviors.

The impact of these three whistle-blowers was historic. Sherron Watkins identified unethical uses of accounting loopholes in financial reporting that allowed Enron to hide billions of dollars in debt from its stockholders. Cynthia Cooper led a group of auditors who dedicated their time to uncover WorldCom’s multi-billion-dollar accounting fraud. Attorney Coleen Rowley exposed failure of the FBI to respond to internal reports warning about a Sept. 11 co-conspirator before the attacks.

The ‘fame’ was not without costs, though. Watkins feared for her job, safety, and privacy. Cooper went through a long period of depression after the criminal convictions of people she considered friends and had known for years. In 2003, Rowley was so heavily criticized for vocally opposing the Iraq War that she voluntarily took a demotion at the FBI, retired in 2004,and then worked for political causes.

All three women continue to speak about workplace ethics at universities and special symposiums. Watkins published a 2003 book,Power Failure: The Inside Story of the Collapse of Enron, that went on to be a best seller. Cooper also wrote a book published in 2008, Extraordinary Circumstances: The Journal of a Corporate Whistleblower, and donated the book profits to universities for ethics education.Rowley now speaks with other whistle-blowers as a part of the “Stand Up for Truth” tour through the U.S. and Europe.

Sherron Watkins’ fears for her job and safety were outcomes of her whistle-blowing that would be considered

Multiple Choice: choose one please

• extinction.

• negative reinforcement.

• punishment.

• positive reinforcement.

• regular reinforcement.

Answer 1

Correct answer is positive reinforcement.

Sherron Watkins’ fears for her job and safety were outcomes of her whistle-blowing that would be considered positive reinforcement. As whistle-blowing is very much ethical reinforcement theory can be used to encourage people to do such acts