Why didn’t we know by Ralph Hasson
Analysis of what Galvatrens company should do to strength its system for uncovering misconduct and what roles that management and the board should play?
Robert Morris University
This Assignment was prepared for Information Technology Governance taught by Professor Dr.Karen Paullet.
Galvatrens, a consumer products company in Houston, has a whistle-blower's lawsuit on its hands. Mike Fields, a former divisional sales manager, claims that he was wrongfully terminated for trying to report an illegal scheme designed by a colleague to inflate numbers. He left the company's COO a confidential voice mail about it, but the COO referred the matter to Mike's boss…show more content… The ethics officer, who was responsible for ethics training and enforcement of the code of conduct, reported to the general counsel. After the passage of the Sarbanes- Oxley Act, the company mandated that the ethics officer inform the board’s audit committee of any allegations of financial wrongdoing or other possible code violations that involved company executives. Which has caused the strain in communication indicating that managers are not willing to listen to their employees concerns. In order to communicate you must have a sender and a receiver. The receiver must convey the verbal or nonverbal communication and provide feedback to the sender (Engleberg & Wynn, 2008, p. 13). If managers are not listening to the verbal or nonverbal communication signals, then communication has failed. The failure of communication can cause major issues in any professional or nonprofessional situation. For example when Mike Fields was reporting Greg’s scheme to Harry Mart, the COO of the company. Harry never followed up with Mike and reported him to his direct manager. If Harry followed up with Mike this may have avoided the lawsuit for the wrongful termination and the accusations. Another issue is that Mike should have reported to his boss, the Vice President of Sales, Terry Samples