Ethical Dilemma

HRNC

Yesterday was one of those days that serves to remind me that thinking I've seen it all really just means I don't get out enough. Input from my fellow HR pros (and large quantities of Pepcid) seem to be called for, so here goes:
I'm an HRD for an HR services and outsourcing firm. Under "normal" circumstances we work with clients who need expertise and assistance that they don't have in-house and would not need or be able to support on a fulltime basis. Most of them want to leverage strategic HR practices,but have at least a few things that need to be cleaned up/changed to get their house in order first. Yesterday was a whole new ballgame. Full gory details would have me typing all night, but a sampling includes:

-illegals on the payroll
-no illness/injury records, except "a note that WE paid for it if they had to go the doctor" IN the employee file (and I use the term employee file loosely)
-I-9's so badly completed that total fines would be less if the forms weren't completed at all
-scaffolding that consisted of wooden ladders propped up on two by fours
-not even a single state or federal required employment law/safety poster (they are of sufficient size to be subject to FMLA)the list goes on...

Here's where I start losing sleep. The company is unwilling, largely due to the expense and effort required, to correct the labor, safety, and environmental violations. My team now has direct knowledge of serious issues at the company--illegals, safety issues, etc. We're struggling to resolve our professional, ethical and legal obligations. Turn them in to various regulatory agencies? Just forget it?

Any wisdom that others are willing to share would be appreciated. HELP!!!

Don D

I don't know of any obligation you have to report the company. Child abuse, yes. Ladders on two by fours, no. I'm assuming your firm wrote the owner of the company a letter outlining what you found or suspect, with a proposal for initiating corrections. That's the end of the process, as far as I'm concerned, if they decide not to use your services. Think about this: The word gets out that you'll just come in and snoop around and then turn potential customers in to various agencies, and you can lay your receptionist off because your phone won't be ringing anymore.

Down_the_Middle

I think Don's absolutely correct. Suggest to the company what you've found, and offer solutions. If they accept, you can make an impact. If they refuse, look for another client. Your credibility is far more precious than working with an organization that doesn't want to do the right things. When they go SOUTH, they'll take you with them!!!!

Theresa Gegen TX

[font size="1" color="#FF0000"]LAST EDITED ON 08-22-02 AT 09:11AM (CST)[/font][p]I don't think that it is your duty or your role to turn them into the authorities. It's not ethically your responsibility and it would be a very bad business decision (what other company will hire your services if they think you are working for the cops).

I do think that your company has a duty to help your client. Giving the client a HUGE list of all the issues, costs, and time to fix, obviously is too much for your client to swallow.

So what can you do? Try to help the client.
1. Identify those areas that can be fixed quickly and in expensively (like, for example, posting the required documents).
2. Identify those areas that expose the company to the most liability in your professional judgment (fix immediately areas). While the I9s could expose the company to fines if the government looks into it, probably areas like safety and work place injuries are more critical.
3. Identify areas that can be fixed over time (for example, for the I-9s maybe the company wants to spend its resources training the person who takes the forms how they must be filled out so that new hires are done correctly, and worry about the current employees later).

The company probably hired you because they want help. It would be great if the company could spend the time and resources to fix everything at once, but they can't. So I think your company needs to try to help them do what they can do to minimize the risk and come into compliance. While you are doing this, you need to let them know (in writing) the risks of taking their time coming into compliance.

Good Luck!

Gillian

This reminds me of earlier consulting days. You should evaluate the real intent of the client. If they will make some changes even if they take time and are sincere about the need to do so, then they are a worthwhile client. If they just don't want to tackle anything because of cost, or whatever, the hassle will be more than what you get out of it, in which case, pass.