What to do when you’ve witnessed a breach in ethics
Let’s imagine that I work in an area where a special license is required to sell cupcakes*. Let’s also imagine that I have recently been hired at a bakery on the condition that I get my license to produce and sell cupcakes.
I’m excited about this new job. It gives me the opportunity to talk to people about their personal cupcake needs and make sure that the cupcakes they purchase from me fully meet their requirements. I take the position seriously and would not mess around when it comes to the sale of cupcakes.
Recently, I learned that someone else in my office sells cupcakes without a license. He told me this with a shrug of the shoulders, saying he really does intend to get licensed one day but it’s just so hard, and he keeps putting it off.
The problem is, the course I am going through to obtain my cupcake sales license is very clear about the licensing requirements. Selling without the license could result in large fines ($50,000) and up to a year in jail.
“So what?” you ask, “you’re not the one selling cupcakes without a license.”
The Cupcake Commission is prepared for that too. It specifically warns that any applicant who has helped someone else conduct business unlawfully is equally liable.
I enjoy working with this salesperson, and my boss is a decent enough human being. The opportunities for advancement and $$$ in this particular office would be nearly impossible to find elsewhere, but this lack of licensure is bothering me more than I expected. I’m just not sure what to do about it.
Do I gently remind the other salesperson of the possibility, however unlikely, of jail time? Do I tell my boss that I know about the illegal sales going on and demand immediate reparation? Do I (gasp) report the whole sneaky lot of them?
*The US does not require a specific license to sell cupcakes; rather, the item sold has been changed to protect the not-so-innocent.


Hi Clara,
well I certainly don’t envy your position! This type of situation always bothers me because not only is the person putting themselves in a position where they could get fined and or jailed, but they are putting you in the same position. Its one thing to do something that could harm yourself, but to drag innocent bystanders into the mix is beyond inconsiderate.
I would take the person aside and mention that in your course you learned that his coworkers could be culpable if he is found out. Perhaps he just isn’t aware that the risk is not only to him but to others as well. As for your Boss, they must know that your colleague isn’t licensed and the possible ramifications, they really should have done something sooner.
I’m, luckily or unluckily, bound my a code of professional ethics. Though I may be personally conflicted, I am required by my oath to report unlawful or unethical behaviour, be it to me superiors or to my professional order.
There may be hotlines you can call where you can “blow the whistle” in relative anonimity.
Either way, if you have a professional code, you have to follow it. If you don’t, then you are only bound by your own morals and risk profile. It seems you have a professional responsibility to report the unethical behaviour, but that’s just me, I’m a snitch.
I’m going to have to agree with Jane and Dom. It’s one thing for someone to put their own career at risk.. but for them to potentially take you down with them is unacceptable. You have to speak up.
Jane - your advice is good, except for one little problem: the boss knows about the lack of a license and doesn’t really seem to care. Of course, this other person told me not to tell the boss that I know, which in my mind, makes his actions extra skeezy.
Domenick - you are right about the moral code that exists in this particular industry, although since it’s a very small firm, the only person to whom I could blow the whistle is my boss. As I just told Jane, my boss already knows and hasn’t done anything about it.
Aaron - it’s funny how easy it is to rationalize not taking action when the risk isn’t immediate. You’re right though, whether the auditor is at the door or not doesn’t make everyone’s actions any less wrong.
ouf… this is a tough one. I’ve never been a snitch or whistle blower and tend to look down on the act.
I don’t know what to tell you. Can’t you make a deal with the person since he has the intention of getting the license? Something along the lines of “i hate to do this but if you don’t get your license in 1 year i’ll report you” type thing.
Here’s another idea. Rent the Insider with Russell Crowe and Al Pacino. Watch it and see how you feel.
I also subscribe to the old schoolyard code of not ratting people out. I agree with Phil’s suggestion: try to make a deal with him since he’s also putting you at risk, but telling on him should really be the last resort.
Phil and Ian - Of course, the non-confrontational side of my personality agrees with you that snitching is not ideal. I like the idea of giving this guy an ultimatum since ultimately he’s endangering me too.