Dealing with ethical dilemmas in your workplace

By Simon Longstaff

A version of this article was first published: The Sydney Morning Herald - December 2008

One of the first calls ever received by St James Ethics Centre’s free Ethics Counselling service* was from a young accountant who was due to graduate from Uni on the following day. Having completed their studies, the person had found what they thought to be a dream job. Rather than working in one of the big accounting firms, this person wanted to work in industry – providing accounting and finance services from the inside.

So, why was the person contacting me at St James Ethics Centre? Specifically, this newly minted accountant suspected that they were being asked to produce dodgy invoices as part of a transfer pricing scheme (essentially a scheme to minimise tax paid in Australia). Although not a lawyer, the young accountant judged the conduct of the company to be wrong, if not illegal.

You need to know that all of this happened over fifteen years ago. Back then, there was no shortage of qualified people looking for a job. What’s more, a decision to walk away from the ‘dream job’ would leave a potentially embarrassing ‘hole’ in the CV. Why? Because we received a barrister’s opinion (on behalf of this person) that if they ever told someone of their reason for leaving the job, then they risked being sued for defamation. So, the day before their graduation ceremony, a young, idealistic person was reduced to tears by the sheer impossibility of their situation.

In the years since this occurred, I have encountered many, many people in similar circumstances. Typically, they have been asked (or ordered) to do something that they believe, in all good conscience, to be wrong. My encounters with such people have been in the private and public sectors, civilian and military – within Australia and abroad – and have involved people from the most junior to the most senior levels of organisations.

So, what are some of the best responses to such situations?

The first is to choose your employer wisely. You need to find an employer whose core values and principles are in alignment with your own. And you need to know that the employer is committed to the practical application of its espoused values and principles. Employers have a legitimate right to expect that people who work for them will apply the organisation’s ethical framework when making decisions on its behalf.

It is not appropriate for an employee to apply a personal morality when acting on behalf of their employer. Indeed, smart employers will only recruit employees (and suppliers etc) with a good ethical ‘fit’. That’s why it is so important to look around for an employer who fits into your world view. A good ethical ‘fit’ reduces (but will not eliminate) the likelihood that you will be asked to do something you think to be wrong. Just make sure that the employer is genuine – put them to the test, ask them for examples of ethical choices they have made and see if they can demonstrate that they do what they say. You want to find an employer for whom you would feel proud to work.

Second, make sure that if you challenge an employer, then you do so by invoking the organisation’s own, declared ethical framework. Let the employer see that you are not asking them to do (or not do) anything more than it has stated for itself. Make sure that you invoke the employer’s ethical framework in good faith – do not choose selectively from the framework, do not seek merely to score points – instead, go to the heart of the matter.

Third, try to surround yourself with like-minded people who can provide you with support. It takes extraordinary moral courage to speak up for what you think to be right – and many people continue to suffer for having done so.

Fourth, make sure that you have the correct facts. In ethics, facts really matter. There is no point jumping at shadows.

Fifth, test your assumptions. They may be open to question.

Sixth, try to identify all of the legitimate ‘voices in the conversation’. Whose interests are at stake here? What are the relevant interests? Are they aligned or do they compete?

Finally, there is always the opportunity for those in Australia to call the Ethics Centre’s Ethi-Call service on 1800 672 303.

In other words, try to ensure that you have a really solid understanding of the issue, some well-developed arguments and a support base. Will this make life easy? No. However, it may lead to a resolution with which you can live.

I do not know the fate of the young accountant I referred to at the beginning. All I can say is that I once told their story to a very senior audience of accountants. A senior partner of a big firm stood up and said in the hearing of all, if you ever come across another person like that, then send them to us. We will employ them in a flash.

* St James Ethics Centre offers what we believe to be the world’s only free, national helpline for people facing ethical issues and dilemmas (1800 672 303). The service is available to any Australian, with access to a phone, and provides a safe place to explore some of the most challenging issues that arise in life. All manner of people call in – farmers, police officers, bankers, journalists, accountants and even the occasional politician. The service is confidential and entirely free. Even the cost of the call is taken care of – thanks to sponsorship from Telstra. Learn more about our Ethi-Call ethics counselling service.