Adam Williams was recently hired as assistant controller of GroChem Inc., which processes chemicals for use in fertilizers. Williams was selected for this position because of his past experience in the chemical-processing field. In his first month on the job, Williams made a point of getting to know the people responsible for the plant operations and learning how things are done at GroChem.
During a conversation with the plant supervisor, Williams asked about the company procedures for handling toxic waste materials. The plant supervisor replied that he was not involved with the disposal of wastes and suggested that Williams might be wise to ignore this issue. This response strengthened Williams' determination to probe this area further, to be sure that the company was not vulnerable to litigation.
On further investigation, Williams discovered evidence that GroChem uses a nearby residential landfill to dump toxic wastes. It appears that some members of GroChem's management team are aware of this situation and may have been involved in arranging for this dumping, but Williams was unable to determine whether his superior, the controller, is involved.
GroChem does not have an established policy on how to resolve issues such as this. Uncertain how he should proceed, Williams began to consider his options by outlining the following three alternative courses of action:
(a) Seek the advice of his superior, the controller.
(b) Anonymously release the information to the local newspaper.
(c) Discuss the situation with an outside member of the Board of Directors with whom he is acquainted.
Required:
(1) In light of the fact that Williams had been hired only recently and that his job is not involved in the dumping of wastes, does he have an ethical responsibility to take some action? Cite the Standards of Ethical Conduct to support your answer.
(2) Which of the 15 responsibilities in Standards of Ethical Conduct apply to Williams' situation?
(3) For each of the three alternate courses of action that Williams has outlined, explain whether or not the action is appropriate.
(4) Without prejudice to your answer to requirement 3, assume that Williams seeks the advice of his superior, the controller, and discovers that the controller is involved in dumping the toxic wastes. Identify the steps that Williams should take to resolve this situation.