case study: worldcom’s whistleblower
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IJAZAH SARJANA MUDA PERNIAGAAN
SESI FEBRUARI 2013/2014
BPMN 3123
ETIKA PERNIAGAAN
TUGASAN BERKUMPULAN
(CASE STUDY: WORLDCOM’S WHISTLEBLOWER)
NAMA PENSYARAH :-
PUAN SITI HAWA
AHLI KUMPULAN :-
ALIYA FARAHIN BINTI KAMARUDIN 217987
HAMIZATUN NADIA BINTI ABD HAMID 217946
KHAIRUNNADIA BINTI BOHARI 217940
NUR FATEHAH AZLIN BINTI MOHAMAD ASHI 217931
MARINIE BINTI IBRAHIM 217939
BPMN 3123
DATE
20 MEI 2014
CASE STUDY: “WORLDCOM’S WHISTLEBLOWER”
QUESTION 1
Which of Kohlberg’s six stages of moral development would you say that Cynthia Cooper
had reached? Explain.
INTRODUCTION
In the management theories of ethics are donated by Lawrence Kohlberg carrying six levels of
moral theories containing actions and beliefs on every level has been discussed as pre-
conventional, conventional and post-conventional. Kohlberg’s six-stage theory is as follows
Lawrence:
Pre-conventional
i. Obedience and Punishment Orientation
• At this point in the behavior based on reward and punishment. This level of
compliance in the individual in any direction for fear if the action violation of the
order.
ii. Orientation of The Personal Rewards
• At this stage the actions performed by individuals expect a reward to be given
consideration for the act. They are more focused on their own needs and feelings.
Assessment is judged good or bad is based on the effect of the action yourself.
Principles of justice are assessed if the action takes place on both sides.
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Conventional
iii. Orientation Kindliness
• At this stage, individuals are more likely to help or more known for it’s altruistic.
Individuals tend to help those who are in trouble and the completion of a work
which is considered good. Individuals are more likely to help people with the aim
that he be considered as a good person.
iv. Ethics Rules
• At this stage the individual over the system conforms to the social and ethical
rules. At this stage, individuals will have more respect for the laws of the existing
and his very high degree of confidence in the law is willing to fight for it. In this
ranking individual was considered to be pure in heart and act on moral thinking.
In the case of WorldCom, Cynthia Cooper ethic and confidence in the law when
they were willing to report on the financial irregularities committed offenses by
Scott Sullivan and David Myer in the company. This proves he has a lot of
confidence and faiths in the cleansing actions were based on moral reasoning.
Post-conventional
v. Ethnic Social Contract and Individual Rights
• At this stage, the individual has a moral and ethical code of its own. Individual
behavior based on social interests and struggle towards a better society. This level
of individual respects for the law, but believes that the law should be modified to
human well-being.
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In the case of WorldCom, Cynthia Cooper use this stage in his life, as he has
awareness of the social importance and are willing to fight for truth in the
company financial irregularities for the benefit of the community together. Here
can be seen Cynthia cooper has its self-code of ethics in herself on her acts.
vi. Universal Ethical Principles
• This stage show individual moral behavior based on self-awareness that puts
human life, justice and dignity of the highest level. Individuals at this stage to
break the law and not because of respect but by a sense of responsibility in terms
of the ethical principles of human rights. They are also willing to accept the
punishment for the offense committed by willing to respect the laws that have
been set.
Ranked sixth was adopted by Cynthia cooper in the WorldCom, when they were
willing to risk his actions are appropriate to the authority for action by Scott
Sullivan and David Myers in the company’s financial irregularities. Risks
assumed by Cynthia Cooper may have some impact on him aside as he respects
the laws set.
QUESTION 2
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Do her action and motivates support or undermine Carol Gilligan’s views? What would
you say is unique about her or what she did?
Giligant Theory of “Female” Moral Development
• For women morality is primarily a matter of caring and responsibility
• Moral development for women is progress toward better ways of caring and being
responsible
• Women move from a conventional stage of caring only for oneself, to a
conventional stage of caring for others to the neglect of oneself, to a post
conventional stage of achieving a balance between caring for others and caring for
oneself.
Research on Moral Identity Suggest
• Morality is not important part of the self until middle adolescence
• The more morality becomes part of the self, the stronger the motivation to be
moral
• Judgments of right and wrong depend in part on the kind of person we think the
itself is
Yes, the action and motives is undermining Carol Gilligan view. Cooper is a women and when
we see Carol Gilligan view we see women is more responsible to ethical issue. Cooper is a
woman and she tend to see themselves as part of a “WEB” of relationship with family and 5 | P a g e
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friends in this case cooper willing to investigate what happen in the company because cooper
care of all the worker in the company. Then when female encounter moral issue, cooper is
concerned with nurtures these relationship. Avoiding hurt to others in these relationships and
caring for the well-being. Cooper wants to protect the company from people that want to destroy
ethical value like Scott Sullivan and David Myers. Cooper wants to save the people from doing
the unethical things. Cooper move to a conventional stage to a conventional stage when she care
about company rather than a job. Then Cooper move to post conventional stage when she care
about Scott Sullivan and David Myers, she don’t want them destroy the company and she want
save them from the unethical behavior.
Cooper is brave to investigate about Scott Sullivan and David Myers even though she is a
woman. She has a high spirit other than men. Cooper also has a deep relationship in the company
and the worker in the company and she wills to save the company. Cooper also did not care what
other women want say about her because she investigate these cases. They did not scare to
inform the world come board of director. She also did not scare if she loss this job because what
is important to her is value and ethics other than job. She is unique because she was strong to
handle their action although she knows other employer and manager will angry and don’t want to
talk with her. She did not afraid of people and they only care about their obligation to the
company because the fear of losing her job was secondary to the obligation I felt.
QUESTION 3
How does William Damon’s theory of moral identity apply to Cynthia Cooper?
William Damon found that “morality does not become a dominant characteristic of the self until
the middle adolescence” this means that until middle adolescence, we tend not to see morality as 6 | P a g e
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an important part of who we really are. This is significant because he also found that the more
morality becomes part of which we are the stronger out motivation to do what is morally right. In
fact, there are “exemplary people” we have so united “self and morality” that when they do what
is morally right, “rather than denying the self, they define it with a moral center and do not see
their moral choices as an exercise in self-sacrifice”
Cynthia Cooper can apply the concept of altruism. Altruism is a strong interest selfless in helping
someone. Reciprocity and exchange (reciprocity and exchange) engage in altruism. Reversals are
found throughout the human world. Reciprocity encourages children to do well to others as they
expect others to do the same to them. Perhaps belief is the most important principle in the long
run in altruism. In this case, Scott Sullivan was moved $400 million from a reserve account and
recorded it as “income” in the company’s public financial reports. Generosity should be available
at every person rather than greed. Scott Sullivan and David should not have made a mistake in
his account fraud if they do not want to be found guilty. Since the advent of the personal greed,
then one is able to do anything to get what they want. Guilt can appear on the surface if the child
does not respond (do reciprocity), and anger can happen if someone does not do instead. Not all
motivated by reciprocal altruism and exchange, but the interactions and reactions with others can
help us understand the truth altruism.
The conditions most likely to involve altruism are emphatic emotional needs of a person
suffering or a close relation between the donors and receive donations. William Damon portrays
a sequence of altruism development of children, particularly sharing (sharing). Until the age of 3
years , sharing is done for the reasons that non-emphatics ; at about 4 years , a combination of
awareness and support adult emphatics produce a sense of obligation to share ; during the early
years of elementary school, the kids are in so - indeed demonstrate ideas more objectively about
justice . At this time began to understand the principles of justice; during the middle of years and
end of elementary school, the principles of performance and well understood.
CONCLUSIONS
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Ethics is very important in all ways. Ethics is very important in all circumstances. To distinguish
whether a company is able to better is with the nature of ethics in each individual.
WorldCom must ensure that each employee has a high ethical values, especially those involved
with the company as the most important part of the company's accounting. Proper ethics and
ethical behavior are extremely important in accounting for a variety of reasons. This is to avoid
something that's could potentially harm business for all accounting firms.
Many negative consequences can result from poor ethics in accounting practices. The first result
is generally a lag in business. Accounting firms rely heavily on word-of-mouth for promotion,
and it's all too easy for a few bad stories about unethical behavior to sway prospective clients
away from a particular firm. There can also be serious legal repercussions for those who are
found to be violating legal codes and standards for their jurisdiction.
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