I posted this article to evaluate the recent ethics controversy going on at Walmart involving a new employee in Walmart's communications department and her decision to report a possible ethics violation within the department. As with many of the ethics violations we have seen in corporate America, the employee (Chalace Lowry) was concerned about possible insider trading that may have gone on with the vice president of corporate communications (Mona Williams). She developed her concern because she heard of a $15 million dollar buy back option that Walmart was going to exercise just a few days after she had copied some papers for Williams which appeared to be about stock. Lowry was mistaken in her assumption, but is upset of how the whistleblowing situation was handled by Walmart's Ethics Office. Lowry stated that her supervisor "made it seem like it was required (telling Mona). It was phrased to me like it was part of the complaint process to tell Mona that I had filed a complaint, I didn't know I had a choice." To read more about the topic, I have provided the link below:
http://www.businessweek.com/bwdaily/dnflash/content/jun2007/db20070612_548611_page_2.htm
It bothers me that Walmart, a leader in it's perspective industry, would handle the situation in such a poor manner. I especially feel this way because Lowry states that she was told in her orientation to report anything that even has the appearance of being unethical.
Now, Lowry is looking for another job within Walmart because she feels like she can no longer be comfortable working an environment with Mona. Further, she may be fearful of her other coworkers thoughts about the entire situation. Northouse states that "ethical theories can be thought of as falling within two broad domains: theories about leaders' conduct and theories about leaders' character." Within this controversy, the theories about leader's conduct can apply to how Walmart and their leaders should handle the situation further. After all, it should be Walmart's first responsibility to ensure a whistleblower's privacy. However, since they have already given this up to Ms. Williams, they must now ensure that their whistleblower is in an environment which respects the fact that she was acting in the organizations interests in filing her complaint.
Northouse further breaks down ethical theories about conduct into teleological theories and deontological theories. Teleological theories deal with the consequences of actions. From this perspective, Walmart and their leaders could demonstrate to the other employees both within the communications department and throughout Walmart that such whistleblowing behavior has produced positive results, is supported within the company, and will be rewarded. Northouse would contend that Lowry teleological approach to ethics considered the best interests of the greatest number of people (the utilitarian approach). He would also argue that she was acting from an altruistic perspective, attempting to promote the best interests others, and specifically the stakeholders of Walmart's company. Such sound ethical leadership exhibited by Lowry should be not only emphasized as a company standard, but celebrated by the leaders of the company who have position power. Northouse would strongly support Mona William's public confirmation of the positive results that the controversy has had within the company, reemphasizing the importance of ethic.
Additionally, Northouse's emphasis on ethical leadership uses Schumann's ideas about the deontological approach for handling leaders' conduct. Schumann contends that the actions of a deontological leader demonstrate his or her moral obligation and responsibilities to do the right thing. When Walmart is handling the controversy from this point forward, they could have their leaders, including Mona Williams, express thoughts to employees about how Lowry handled the situation in the right way. They could also express further support for Lowry's whistleblowing actions by continuing to emphasize to employees that any behavior that has the appearance of being unethical still needs to be reported, because that is the moral and right thing to do. Walmart should also provide the fact to employees that not all behavior that appears to be unethical actually is. To provide continuous ethics training and ethical leadership, that helps build trust among the members of all departments within Walmart, is also an essential result of this controversy.
Northouse provides Ronald Heifetz thoughts on ethical leadership stating, "the leader provides a 'holding environment' in which there is trust, nurturance, and empathy. In a supportive context, followers can feel safe to confront hard problems." The after effects of a confused whistleblowing development definitely could use the trust, nurturance, and empathy of such a "holding environment" described.
Thanks for reading,
Justin Fisher
Great post; not surprised to see Wal-Mart in the news for problems with ethics and employee relations once again. We learned a multitude about Wal-Mart and theire lack of responsibility to their employee's in my MQM 385 class and I feel that it is ultumately culminating with a big problem for the industry giant. When you ignore your employees you ignore your number one stakeholder and will eventually see the repercussions in the bottom line. Wal-Mart and ethics, sounds like an oxymoron.
ReplyDeleteI agree with what you said and would like to add to you quote "theories about leaders' conduct and theories about leaders' character" from Northouse. I feel that the way Wal-Mart handles their ethical issues reflects directly on their leaders' conduct. The many spotlights that have been shinned on the ethical issues makes the leaders seem sneaky and willing to hide problems in the company. It can also suggest that since she was not protected that the leaders want employees to take care of or ignore issues instead of bringing attention to the problem.
ReplyDelete-Dan Condon
I feel that if people do in fact suspect something is going on when on the job, they should not hesitate to seek additional authority or should immediately seek the HR department. I would have to say I strongly agree with Justin when he states, “Walmart and their leaders could demonstrate to the other employees both within the communications department and throughout Walmart that such whistleblowing behavior has produced positive results, is supported within the company, and will be rewarded.” If that is known throughout the company, employees will not be worried or scared to come forward with a problem. This will then cut back sneaky behavior and will allow the organization to prosper. I also agree with Dan that incentives will truly dig out the problems and will keep employees from hiding suspicious behaviors.
ReplyDelete-Steve Fagiano