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Critical Analysis

In: Business and Management

Submitted By jjrupprecht
Words 1068
Pages 5
Business 313 Loss Prevention
January 26, 2013
Jay Odum Critical Analysis Paper
Problem: Your employer is violating environmental laws. You know that if the government learns of the violations, your company will be unable to survive financially criminal and civil action and pollution controls. You will certainly lose your job. What do you do? Should you inform the authorities and risk losing your job or stay quiet? This can be a difficult situation and can put the employee in an awkward position. Your first instinct is to keep quiet, especially if you like your employer and your job. You need your job, everyone needs their jobs. On the other hand, if the violation is something serious and criminal, then yes, you are obligated to do something. What if you are wrong and falsely accuse your employer? If you make a false accusation you could be sued for defamation. Consider all of the options first before bringing the company to its knees and causing everyone to lose their jobs. Do not act hastily or rashly. You want to maintain a good relationship with your employer.
Your first obligation is to report the violation. You are ethically responsible to report an environmental violation at your company. You should comply with your company’s established code of ethics. All employees must be a part of the ethical environment through a code of ethics and see it spelled out in policies, procedures, and training (Purpura, 2008). When you or your employer make unethical decisions, you become part of the problem. In addition to maybe committing a crime by not reporting the violation, you could also jeopardize your company’s chances of escaping indictment (Lingenberg, 1994). By not reporting the violation you are subjecting your company and yourself to possible criminal and civil liabilities (Purpura, 2008).
Make sure your facts are accurate. You should keep an accurate record of your findings and provide factual information when making a report (The chain of command reporting system, 2013). Be sure your report includes any proof of the violation, clear and concise statements, and documentation.
The next step is to follow the proper chain of command in reporting your concerns. Every company has policies in place to comply with federal and state laws regarding violations at work (Emisar, 2011). When policies are broken there is a protocol system to address these concerns. These policies and procedures would be included in your employee handbook. It is always best to contact your employer first if you see a problem (What are my rights under OSHA, 2013). You should address your direct supervisor with any work-related concerns (Renee, 2013). Your supervisor is responsible for his employees and each individual is accountable to their direct superior. If your efforts are futile, you can contact the department head and work your way to upper management and corporate headquarters until you get results.
After reporting the violation to your supervisor the incident can be self-reported to the Environmental Protection Agency. Discovering an environmental violation does not necessarily mean the company will have to be shut down. The company may have options after the disclosure is made to the EPA. The EPA Audit Policy was established for this reason. The EPA Audit Policy, formally known as Incentives for Self-Policing: Discovery, Disclosure, Correction and Prevention of Violations, was established to “safeguard human health and the environment by providing several major incentives for regulated entities to voluntarily come in to compliance with federal environmental Laws & Regulations” (Compliance Incentives and Auditing, 2012).
The EPA has established guidelines for companies to take advantage of these incentives. The company must voluntarily discover the violation, promptly disclose the violation to the EPA, immediately correct, and prevent recurrence of future environmental violations (Compliance Incentives and Auditing, 2012). If the incident is reported early enough it could save the company from severe penalties or litigation. “What a corporation does in the firsts few hours, days, and months after learning of a potential environmental crime can dramatically affect whether charges will be brought and, if brought, what the punishment will be (Lingenberg, 1994). Early self-reporting can result in significant penalty reductions and possibly recommendations for no criminal prosecution. The EPA has the discretion to eliminate penalties if it determines that a company has satisfied certain conditions set forth in the audit policy (Hormel Food Division Self-Discloses Violations, 2008). This can include a reduction in fines by 75%. Some penalties can be reduced up to 100% for violations that are voluntarily discovered, promptly disclosed to the agency, and quickly corrected (Hormel Food Division Self-Discloses Violations, 2008).
While there is always the option to keep quiet and not report the violation, ultimately you are ethically responsible to report your concern. Most employers will correct hazardous conditions if they are called to their attention (What are my rights under OSHA, 2013). There are laws in place to help businesses correct their violations. There are also laws in place to protect the employee from losing his job or from retaliation for reporting the incident. Whistleblowers who expose mismanagement, fraud, or abuse in the private sector have laws to protect them (Anderson, 2012). Federal environmental laws have special provisions protecting employee whistleblowers (Environmental whistleblowers, 2013). These laws were established to encourage employees to report violations and for companies to self-report environmental violations.

References
Anderson, T. (2012). Whistleblower bills would protect private sector employees. Retrieved from http://ww.securitymanagement.com.
Emisar, O. (2011). Should you go over the boss's head? Retrieved from http://www.brighthub.com/office/career-planning/articles/119628.aspx.
Kelchner, L. (2013). The importance of following the chain of command in business. Retrieved from http://smallbusiness.chron.com.
Lingenberg, G. (1994). Hazardous wastes of time when the crime is environmental. 13 Preventive Law Reporter, p.29. Retrieved from http://heinonline.org.
Purpura, P. (2008). Security and Loss Prevention, An Introduction (Fifth edition). Burlington, MA: Elsevier.
Renee, M. (2013). The advantages of the chain of command. Retrieved from http://www.ehow.com.
Compliance Incentives and Auditing. (2012). Retrieved from http://www.epa.gov/oecaerth/incentives/auditing/auditpolicy.html.
Environmental whistleblowers – workplace fairness. (2013). Retrieved from http://www.workplacefairness.org.
Hormel Food Division Self-Discloses Violations, Has Penalties Waived. (2008). Retrieved from http://ohsonline.com.
The chain of command reporting system. (2013). Retrieved from http://navyadvancement.tpub.com.
What are my rights under OSHA? (2013). Retrieved from http://www.allaboutosha.com.

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