Daniel Schlowing Ethics

1444 Words3 Pages

Whistle-blowing is the act of disclosing illegal or immoral practices to a person or organization who can influence a legal and moral outcome of the situation. Whistle-blowing in the United States dates back to 1773 when Benjamin Franklin released confidential letters that showed the Massachusetts’ governor lied to Parliament to increase a military presence in the new world (”A Timeline”). While whistle-blowing is an ethical act, there can be situations where it is unethical. First, let’s look at the example of Caterpillar’s tax evading case. Daniel Schlicksup began his Caterpillar career in 1992 with a tax staff position. The company wanted him knowledgeable in International tax law. Therefore, the company placed Schlicksup in Brussels …show more content…

Additionally, he informed the Occupational Safety and Health Administration (OSHA) that he felt retaliated against for reporting his concerns to upper management. Furthermore, in 2009 he sued Caterpillar for their perceived retaliation (Gruley). In a 2011 deposition, a Caterpillar attorney asked Schlicksup if his actions were advisable. Schlicksup stated: “It is absolutely in the Shareholders’ best interests to have the most accurate financial statements they can have (Gruley).” Schlicksup’s lawsuit settled on February 14,2012, under undisclosed terms. His career at Caterpillar terminated shortly thereafter (Gruley). The IRS investigation continued. In December 2013, the IRS notified Caterpillar it “had understated its U.S Income by more than $3 billion for 2005 and 2007 through 2009(Gruley).” On April 1, 2014, the state Senate Committee concluded that Caterpillar owed $2.4 billion in taxes. That amount was subject to change as they reviewed recent years financial statements. On March 2, 2017, armed with search warrants signed by a federal judge, the IRS, Department of Commerce, and Federal Deposit Insurance Corporation (FDIC) all entered Caterpillar’s Peoria headquarters. They interviewed employees and took documents, encryption devices, and other evidence related to the investigation. The investigation continues today …show more content…

First, they encourage the whistle-blower to consider their motivation. In the article, they explain to the whistle-blower that reports based off vindictive or vengeful reasoning will be considered unethical reports. The whistle-blower is encouraged to ensure they are reporting for the sake of the company’s and the public’s well being. Second, they remind the whistle-blower to analyze the cost of their report. Subsequently, if the whistle-blower decides to go outside of the agency, they remind them to obtain all evidence to verify the ethical conflict exists as well as ensure they have a proper support system in place. Lastly, they prompt the whistle-blower to ensure they have exhausted all internal options before they make an outside claim (Going

Open Document