preview

Essay about Whistleblowing and Corporate Ethics: Hughes Aircraft

Good Essays
Introduction Whistleblowers were never treated with hospitality. In general, 90% of whistleblowers lost their jobs or were demoted, regardless of the industry; 27% faced lawsuits; 26% had psychiatric or medical referrals; 17% lost their homes, and 8% went bankrupt (Waters 2008). As highly righteous as whistleblowers are, they also suffer severe consequences. In Hughes Aircraft case, the company's employees who decided to blow the whistle, Goodearl and Aldred were extremely affected and treated unfairly, so much so that " [Goodearl] and her husband had to file for bankruptcy, and Aldred was on welfare for a year before she could find another job."(The Hughes Whistleblowing Case , n.d.). Hence, the main focus of this paper is to determine…show more content…
First, companies are responsible for providing goods/services to their client and make profits; fail to make profits is an irresponsible behavior that would eventually hurt companies' stakeholders. In this case, we would not know if Hughes Aircraft were profitable, but it was certainly profitable enough to continue its operations. Second, companies are accountable for meeting all the legal requirements. Presumably, Hughes' met all the legal requirement in order to function as a company. Third, companies are expected to perform in a manner that consistent with societal moral standard; without it, corporations are doomed to perish in the long run. Clearly, Hughes Aircraft is unethical because it intentionally skips tests that are crucial to the quality of their products, which may cost US military millions, not to mention the possible breach of homeland security. Moreover, the company is immoral to laying off Goodearl, for her being a good "corporate citizen". At last, companies should show initiatives in philanthropy, even though it is voluntary rather than mandatory. Who is to blame for Hughes’ unethical practices? Why? Top managements are to blame for Hughes' unethical practices because they have the authorities to and responsible for providing guidance on how things should be done within a company; if the decisions top management
Get Access