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CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence

Arjun learns that a colleague in his Chennai firm is inflating sales figures to meet targets. After the internal ethics policy allows confidential reporting, Arjun reports it through the designated channel to senior management without public disclosure. This action is best described as:

This is internal whistle-blowing. Arjun reports suspected wrongdoing in good faith through the firm's designated confidential channel to people who can act, rather than publicising it, so it is a recognised ethical response in the workplace.

  1. AWhistle-blowing through an internal channelCorrect
  2. BDefamation of a colleague
  3. CInsubordination
  4. DPlagiarism

Explanation

Reporting suspected wrongdoing to those able to act on it, through an authorised internal channel, is internal whistle-blowing. It is not defamation as it is a good-faith report to the proper authority. Nor is it insubordination or plagiarism.

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