Week 6 - Tatsiana Krupetskiy Professor Wehmhoefer BA 495-E...

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Tatsiana Krupetskiy Professor Wehmhoefer BA 495-E 07 Aug. 2009 Week 6 1. Sherron Watkins, Enron’s vice president of corporate development, 1 was justified in her case of whistle-blowing. Applying the loyal agency agreement, we learn that “an employee is an agent of an employer.” 2 Thus, an employee has an obligation to work as directed, to protect confidential information, and to be loyal. However, as a professional, an employee is also supposed to act in the interest of a principal. Therefore, Sherron Watkins had dual responsibility of loyalty - to Enron and to its shareholders. In order to determine if whistle-blowing is justified, one must answer six questions. As defined by John Boatright, these questions are: 1) Is the situation of sufficient moral importance to justify whistle-blowing? 2) Do you have all the facts and have you properly understood their significance? 3) Have all internal channels and steps short of whistle-blowing been exhausted? 4) What is the best way to blow the whistle? 5) What is my responsibility in view of my role in the organization? And 6) What are the chances for success? 3 In view of the above mentioned steps, Ms. Watkins can be justified in her whistle- blowing. She saw that the harm done by doing illegal accounting practices would affect not only Enron’s employees, but also its shareholders; thus, the situation was of significant moral importance. Ms Watkins had all the facts about “Condor” and “Raptor”
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Week 6 - Tatsiana Krupetskiy Professor Wehmhoefer BA 495-E...

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