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MBA Staff Writer
Written by Gary F. Smith
Publish Date: 2024-10-01

Harvard Case - A Midshipman's Dilemma

"A Midshipman's Dilemma" Harvard business case study is written by R. Edward Freeman, Jenny Mead, Armondo Garzo. It deals with the challenges in the field of Business Ethics. The case study is 4 page(s) long and it was first published on : May 28, 2003

At Fern Fort University, we recommend that Midshipman Jones take a proactive approach to address the ethical dilemma he faces. This involves reporting the potential violation of corporate social responsibility and business ethics to the appropriate authorities within the company, while also seeking guidance from trusted mentors and advisors. This approach prioritizes ethical decision-making, transparency, and whistleblowing while upholding the principles of corporate governance and organizational values.

2. Background

The case study focuses on Midshipman Jones, a student at the US Naval Academy, who is working as an intern at a defense contractor. During his internship, he discovers potential violations of business law and ethics related to the company's bidding process for a large government contract. The company appears to be engaging in white-collar crime by manipulating data and exaggerating its capabilities to secure the contract. This situation presents Jones with a difficult ethical dilemma: whether to remain silent and potentially jeopardize the company's reputation and future contracts, or to report the misconduct, potentially jeopardizing his internship and future career prospects.

3. Analysis of the Case Study

This case study highlights several key themes:

  • Corporate Social Responsibility: The company's actions directly contradict the principles of corporate social responsibility, which emphasizes ethical conduct, transparency, and accountability.
  • Ethical Leadership: The case raises questions about the leadership within the company, particularly the lack of ethical guidance and the potential for a culture of unethical behavior.
  • Stakeholder Theory: The company's actions negatively impact various stakeholders, including the government, taxpayers, and potentially other competing companies.
  • Decision-Making: Jones faces a complex decision-making process, weighing the potential consequences of reporting the misconduct against the ethical implications of remaining silent.
  • Organizational Culture: The case study suggests a potential culture of unethical behavior within the company, which could have far-reaching consequences for its future success.

4. Recommendations

  1. Report the Misconduct: Midshipman Jones should report the potential violations to the appropriate authorities within the company, such as the company's ethics hotline or a senior manager. This action aligns with the principles of transparency, whistleblowing, and corporate governance.
  2. Seek Guidance: Jones should seek guidance from trusted mentors and advisors, such as his professors at the Naval Academy or a trusted family member. This will provide him with a broader perspective and help him navigate the ethical complexities of the situation.
  3. Document Evidence: Jones should meticulously document all evidence of the potential violations, including dates, times, and specific details. This documentation will be crucial if he needs to escalate the issue to external authorities.
  4. Consider Legal Implications: Jones should be aware of potential legal implications of reporting the misconduct, such as potential retaliation from the company. However, he should also be aware of legal protections for whistleblowers.
  5. Prioritize Ethical Conduct: Jones should prioritize ethical conduct and uphold the values of honesty and integrity, even if it means facing difficult consequences.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The US Naval Academy emphasizes ethical conduct and integrity as core values. Reporting the misconduct aligns with these values and demonstrates Jones' commitment to ethical leadership.
  • External Customers and Internal Clients: The company's actions negatively impact external customers (the government and taxpayers) and internal clients (employees who may be complicit in the misconduct). Reporting the misconduct protects these stakeholders.
  • Competitors: Reporting the misconduct could potentially benefit competitors by leveling the playing field and ensuring fair competition.
  • Attractiveness - Quantitative Measures: While it's difficult to quantify the benefits of ethical conduct, the potential reputational damage and legal consequences of the company's actions could significantly impact its financial performance.

6. Conclusion

Midshipman Jones faces a challenging ethical dilemma, but his decision to report the potential violations is the most ethical and responsible course of action. By upholding the principles of corporate social responsibility, ethical leadership, and transparency, Jones demonstrates his commitment to integrity and sets an example for others in the organization.

7. Discussion

Other alternatives include:

  • Remaining Silent: This option would allow Jones to avoid potential consequences but would be ethically problematic and perpetuate the company's unethical behavior.
  • Confronting the Perpetrators Directly: While this might be tempting, it could be ineffective and potentially dangerous.

Risks and Key Assumptions:

  • Retaliation: The company could retaliate against Jones for reporting the misconduct.
  • Legal Consequences: Jones could face legal consequences for reporting the misconduct, even if he is ultimately proven right.
  • Company Culture: The company's culture may not be conducive to ethical behavior, making it difficult to effect change.

8. Next Steps

  1. Immediate Reporting: Jones should report the potential violations to the company's ethics hotline or a senior manager within the next 24 hours.
  2. Seek Guidance: Jones should schedule a meeting with his professors at the Naval Academy or a trusted advisor to discuss the situation and potential options.
  3. Document Evidence: Jones should continue to document all evidence of the potential violations and prepare for potential legal proceedings.
  4. Monitor the Situation: Jones should monitor the company's response to his report and be prepared to escalate the issue to external authorities if necessary.

By taking these steps, Midshipman Jones can demonstrate his commitment to ethical conduct and contribute to a more responsible and accountable business environment.

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Case Description

Although not set in a business environment, this case illustrates a common dilemma existing in almost any setting: Do you uphold an institution's honor code, although it means implicating a friend and comrade of wrongdoing?

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