Ethics in the Public Sector

Business & Government

Relationship
Officials of government characteristically look upon
themselves as probers, inspectors, taxers, regulators,
and punishers of business transgressions.
Business people typically view government agencies
as obstacles, constraints, delayers, and impediments
to economic progress, having much power to stop
and little to start.
 Deontology – Kant

• Morality is a constant.

• Obligation or duty approach.

• Rightness or wrongness of actions does not

depend on their consequences but on
whether they fulfill our duty.
 Deontology – Kant
What does it mean to act out of duty?
We should act from respect of moral law.

How do we do that?

We must know what is moral law.

How do we know that?

We use the Categorical Imperative.

 Categorical Imperative
• A rule for testing rules.

• Act only on those maxims (or rules of action)

that you could at the same time will to be a
universal law.

• Generalize (Test 1)

• Reversibility (Test 2)
 Government Ethics
• Policy

• Process
• Politics

• Policy:
Ethical decision-making about substantive
government matters.
 Ethics in the Public Sector
• Process

The unique sets of duties & obligations

that a person assumes when they enter
public service

• Politics

• Personal pursuit of running for office

• Ethical campaigns
 Government/Business
Relationship
Government influences business through

 Regulation
 Taxation
 Industrial policy
 Privatization/ threat of nationalization

Businesses influence government through

lobbying.
Public/Government Relationship
 The public uses the political processes of
voting and electing officials (or removing
them from office) to influence government.
 It also exerts its influence by forming
special-interest.
 Government, uses politicking, public policy
formation, and other political influences to
have an impact on the public.
 Business/Public Relationship
 Business influences the public through
advertising, public relations, CSR and
other forms of communication.

 The public influences business through the

marketplace or by forming special-interest
groups and protest groups.
 Whistleblowing
• A whistleblower is an employee, former
employee, or member of an organization,
especially a business or government agency,
who reports misconduct to people or entities that
have the power and presumed willingness to
take corrective

• Generally the misconduct is a violation of law,

rule, regulation and/or a direct threat to public
threat, such as fraud, healthy/safety violations &
corruption.
 Whistleblowing
• Whistleblowing leads to good and bad results.
First, the benefits of carefully considered
whistleblowing can lead to the end of unethical
practices. The lives of individuals and whole
communities have been saved by
whistleblowers.

• The actions of whistleblowers are potentially

beneficial to society. Businesses that engaged in
unethical practices have been shut down
because of the actions of whistleblowers.
 Whistleblowing & HR Actioners
• Whistleblowing mechanism such as hotlines,
ombudsmen, administering annual compliance.
This mechanism should be part of a company’s
strategy.

• Whistleblowing can also be broken down into

two different categories in which the employee
may notify others of the alleged wrongdoing;
either internally or externally.
 Whistleblowing & Moral
Reasoning
• Utilitarianism
If more people benefit from whistleblowing (such
as a social group or entire society) than the
number of people working in the company, then it
is a morally correct and ethical act.

• Deontology
It is one’s duty as a morally autonomous individual
to take ethical responsibility therefore it is a
compulsory act.
 Types of Whistleblowing
• Internal Whistleblowing
An employee tries to notify their superiors and/or
upper management of the wrongdoing(s) using the
proper prescribed channels and procedure.

• External Whistleblowing
An employee will notify media, public interest
groups, regulatory authorities rather than the
management of the firm they work for.
 Types of Whistleblowing
• Personal Whistleblowing

An employee blows the whistle on an offender.

Here the charge is not against the
company/organization or system but against an
individual.
 Ethical Dilemma
• The Mum-Effect – reluctance to blow the whistle

– Audit report may contradict the best judgment

– vested interests of powerful players
– Fear of reprisals

• The Deaf Effect – reluctance to hear the whistle

– I wrote lots of reports. Escalated things as much as I could but

in the end, they said, “We really appreciate your efforts, thanks
but no thanks.”
 Ethical Dilemmas
• The Blind Effect – reluctance to see the need to
blow the whistle.

– Established audit/investigative procedures &

processes do not operate effectively because they
try to conceal the information from management.
 Famous Whistleblowers
• Edward Snowden
• Julian Assange
• Satyendra Dubey
• Sherron Watkins
• Wells Fargo
• Uber
 Whistleblowing & Carroll's
Pyramid
• Do Whistleblowing mechanisms make
corporations more socially responsible?

• Where should whistleblowing procedures lie on

Carroll’s Pyramid?

• How can Whistleblowing impact company’s

relationship with internal & external
stakeholders?