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

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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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