Harvard Case - An Intern's Dilemma
"An Intern's Dilemma" Harvard business case study is written by Sandra J. Sucher, Matthew Preble. It deals with the challenges in the field of Business Ethics. The case study is 3 page(s) long and it was first published on : Jan 3, 2011
At Fern Fort University, we recommend that Sarah, the intern, take a principled stand and report the potential ethical violations to the appropriate authorities within the company. This includes documenting the evidence of the illegal activities and seeking guidance from a trusted mentor or legal professional. By doing so, Sarah can uphold ethical principles, demonstrate her commitment to corporate social responsibility, and potentially prevent further harm to the company and its stakeholders.
2. Background
This case study revolves around Sarah, an intern at a large multinational corporation, who discovers potential illegal activities by her supervisor, John. John is manipulating the company's financial records to inflate profits and secure a lucrative bonus. Sarah faces a moral dilemma: whether to report John's actions or remain silent. This situation highlights the complex interplay between business ethics, organizational values, and personal accountability.
The main protagonists are Sarah, the intern grappling with an ethical dilemma, and John, the supervisor engaging in unethical and potentially illegal activities.
3. Analysis of the Case Study
This case study can be analyzed through the lens of stakeholder theory, which emphasizes the importance of considering the interests of all stakeholders, including employees, customers, investors, and the community. John's actions directly harm the company's stakeholders by undermining its reputation, eroding trust in its financial reporting, and potentially leading to legal consequences.
Sarah's decision-making process is influenced by several factors:
- Ethical principles: Sarah's personal values and sense of justice conflict with John's actions. She recognizes the potential harm caused by his behavior and feels obligated to act.
- Fear of retaliation: Sarah is concerned about the potential consequences of reporting John, including losing her internship and facing professional repercussions.
- Loyalty: Sarah feels a sense of loyalty to her supervisor and the company, making it difficult to betray their trust.
- Lack of experience: As an intern, Sarah lacks the experience and authority to navigate this complex situation effectively.
The case also highlights the importance of corporate governance and ethical leadership. The company's lack of a clear code of conduct and a robust whistleblowing mechanism creates an environment where unethical behavior can flourish. John's actions demonstrate a failure of leadership and a disregard for the company's ethical obligations.
4. Recommendations
Sarah should take the following steps:
- Document the evidence: Sarah should carefully document all evidence of John's actions, including emails, memos, and any other relevant information. This documentation will be crucial if she decides to report the issue.
- Seek guidance: Sarah should seek advice from a trusted mentor or legal professional. This could be a professor, a career counselor, or an ethics hotline. They can provide guidance on the appropriate course of action and help Sarah understand her legal obligations.
- Report the issue: Sarah should report John's actions to the appropriate authorities within the company. This could be the HR department, the ethics hotline, or a senior manager. Sarah should clearly and concisely explain the situation and provide the supporting documentation.
- Consider external reporting: If Sarah feels that the company is not taking appropriate action, she may consider reporting the issue to external authorities, such as the Securities and Exchange Commission (SEC) or a regulatory agency.
- Protect herself: Sarah should take steps to protect herself from retaliation, such as documenting all communication with the company and seeking legal advice.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Ethical obligation: Sarah has an ethical obligation to report John's actions, as they are potentially illegal and harmful to the company and its stakeholders.
- Legal protection: Many jurisdictions offer legal protection to whistleblowers, ensuring that they are not penalized for reporting unethical behavior.
- Corporate responsibility: Companies have a responsibility to create a culture of ethical behavior and to protect their stakeholders from harm.
- Long-term impact: Reporting John's actions can help to prevent future ethical violations and promote a more ethical corporate culture.
6. Conclusion
Sarah's dilemma highlights the importance of ethical decision-making in the workplace. By taking a principled stand and reporting John's actions, Sarah can uphold her ethical values, demonstrate her commitment to corporate social responsibility, and potentially prevent further harm to the company and its stakeholders. This case study underscores the need for strong corporate governance, clear ethical guidelines, and a culture of transparency and accountability.
7. Discussion
Other alternatives Sarah could consider include:
- Ignoring the situation: This option would allow Sarah to avoid the potential consequences of reporting John, but it would also allow his unethical behavior to continue.
- Confronting John directly: This approach could potentially resolve the issue without involving higher authorities, but it is risky and may not be effective.
- Seeking advice from a friend or colleague: This option could provide support and guidance, but it may not be the most appropriate course of action, as it could compromise confidentiality.
The key assumption underlying the recommendation is that Sarah will be able to gather sufficient evidence to support her claims and that the company will take appropriate action to address the issue. However, there are risks associated with this approach, including:
- Retaliation: John or other company officials may retaliate against Sarah for reporting the issue.
- Lack of action: The company may not take any action to address the issue, leaving Sarah feeling frustrated and disillusioned.
- Legal complications: The reporting process may be complex and time-consuming, and Sarah may face legal challenges.
8. Next Steps
Sarah should take the following steps to implement the recommendations:
- Within 24 hours: Gather all available evidence, including emails, memos, and any other relevant information.
- Within 48 hours: Consult with a trusted mentor or legal professional to discuss the situation and her options.
- Within one week: Report the issue to the appropriate authorities within the company, providing detailed documentation and a clear explanation of the situation.
- Ongoing: Monitor the company's response to the issue and seek legal advice if necessary.
By taking these steps, Sarah can demonstrate her commitment to ethical behavior and help to create a more responsible and accountable corporate culture.
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Case Description
An HBS student is asked by his employer to misrepresent himself during the course of his summer internship in order to obtain data from industry competitors.
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