Midterm assignment major business ethics whistleblowers in the dat plastic company case study

A well-known case study that exemplifies whistleblowing is the Vietnam's DAT Plastic Company in Ho Chi Minh City.. External whistleblower When someone finds significant wrongdoing by a g

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES —

INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION

MIDTERM ASSIGNMENT

Major: BUSINESS ETHICS WHISTLEBLOWERS IN THE DAT PLASTIC

COMPANY CASE STUDY

Group number: Pham Huynh Thi Diem Quynh - 19DH480023

Lam Tuan Dat - 20DH482007 Thieu Phuoc Ninh - 20DH481867 Nguyen Thi Thanh Mi - 19DH120573

Nguyen Van Khanh - 19DH120322 Nguyen Tran Ha Thuong - 20DH121336 Tran Minh Quan - 20DH120129

Ly Kim Xuan - 21DH123461 Group member: 24516

Class: Friday, 7-8

Course: 546314

HCMC, 04/2024

Table of Contents

ABSTRACT oo cccccccccccccccsesseseeseseseesesecsesecseecsenssseeeseeeeeecsesecseeessesenseeeceetseseeesenesseeseaeeeeees 4 CHAPTER 1: INTRODUCTION ABOUT WHISTLEBLOWER cà ccàc ii 6 1.1 ii na 0 1 ee. 6 1.2 The importance of whistlebloweTs c c1 21121122111 1121115111 211118 1x vky 6 I0 902 0 7 1.3.1 Internal whistleblOWET ác ng TH HH HH HH TH như 7 1.3.2 External whistleblower e 7 1.4 Whistleblowing 1s ethical - - - c1 22 2221212111211 1151111121111 118112 11111 ke 7 1.5 Whistleblowing 1s unethical - c 1 2122112111121 15115111511 15125 111111 ke 8 1.6 0/0100) 00.2000) 0-00 00ïÚ aaa4AIAỤIiiỶÝỶẢƠẢƠẢƠẢŸƠẢŸẢẼẼŸÝẼÝÝ 8 2.1 Overview about DAT Plastic compamnyy 0 00.c0 ccc ccc ce ccceeetse cee eesesesseeeenteeenees 8

2.1.2 Development history of DAT' PÏasfic - c2 2211122112 11212 21212 xe, 9 2.1.3 The organ1zation”§ SfafUS 0 0 2111211222 112011511 n ng he ng hệt 10 2.1.4 Organizational SfTUCfUTE Q21 2111121112 225111 1151115111011 811kg lãi PP " 12

PN Non 12 2.2 Case study about DAT PÏlastic company 0 222221122 11122122211 ke re 13 2.2.1 Plastic Product Manufacturing Process at DẠT c cà 2222 srse 13 2.2.2 National Technical Standards for Industrial WastewafeT cào ceecằ 14 2.2.3 Wastewater Ireatment Process at DAT PÏasiHc series 14 2.2.4 Business Ethics Issues at DAT PÏasfIc á- Qìncn SH HH he, 16

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2.2.5 Consequences of DAT' Plastie's Unethical Pracfices - c5 cc c2 17 2.2.6 Main Development o£the IncidenI -.- 2c 22 22212121123 21x Hen 18 2.2.7 Outcome of the Ïn€1d€TI( - c3 1211213512 111321 1112111211111 11 115 1H re 19 2.3 Whistleblowers at DATT' PÏaSHC 2n S211 SH TH HH1 HT TH Hà Hàng 20 PIN.) 2 o9 ee- 20 PIN Ai c0 na 20 2.3.3 Ethical Whistleblowing - Q21 2121112 HH 12 ng kg H nay 21 2.3.4 Unethical Whistleblowing - c1 2021221121111 1 211191115 11121111 nay 22 2.3.5 Outcome oÊ Whisfleblowing c0 1211112111211 112111212 H 11tr na 23 CHAPTER 3 SOLƯTIONS AND RECOMMENDATIONS cà seieies 23 3.1 Learnnng from the †OpIC -.- c1 2 1222212111211 1 12111211211 1111 1181121111118 181 Hye 23

3.2.2 For government agencles and the PresidenI - - c2 21 221tr sa 25 E4 voi nh 25

3.3.2 For local authOTIẨIGS - c2 12 2t 1 212v 11111111111 1111111 11111 11 TH HH ret 26 CHAPTER 4 CONCLUUSION - L L1 SH HH1 1111111 11111011 11H H1 HH He 26

Table of Figures Figure 2.1: Some products of DAT Plasfic - ¿- c- c 22 3211251151251 1 1151121111111 1121 se 9 FIigure 2.2: Logo of DAT' Plastic Joint Stock Coimpany - c cà cc nns nè 9 Figure 2.3: Market Share of Vietnam Plastic Indusfry -.- s22 sss ll FIigure 2.4: DAT Plastic organizatlonal SfTuCfUT€ óc S2 1112 12 1921211151111 k2 12 Figure 2.5: Plastic manufacturing DTOC€SS . 020 0221222112211 1 2511121211111 1 1812111 xee 13 FIlgure 2.6: Wastewater Ireatment Process at DAT' PÏasfc - c2 ccsccsssseẰ2 16 Figure 2.7: Consequences of DAT Plastic company's waste discharge - 18

Table of Tables Table 2.I: Values for pollution parameters 1n Industrlal wasteWaf€T cà: 14

ABSTRACT

The concept of whistleblowing has existed since the 19th century In 1970, The phrase was allegedly coined by well-known American consumer activist Ralph Nader to avoid the negative connotations attached to other terms like "informant" or "snitch." The term

"whistleblower" has since gained popularity and is frequently brought up in discussions among analysts, workers, shareholders, and other businesses This phrase refers to using a whistle to notify a group of people or the public of problems like crimes or game rules that have been broken In business behavior, whistleblowing has become a prominent ethical phenomenon It is an essential tool for revealing wrongdoing and encouraging organizational accountability Whistleblowing has gained recognition in recent times for its ability to expose corporate malfeasance, advance transparency, and protect the interests of society Employees who reveal unethical or illegal activity to the public or appropriate authorities are known as whistleblowers, and they frequently face serious consequences This act emphasizes the moral need of employees to respect ethical standards, challenging traditional ideas of loyalty and obedience inside corporate organizations

A well-known case study that exemplifies whistleblowing is the Vietnam's DAT Plastic Company in Ho Chi Minh City The year 2020 brought accusations of environmental misbehavior and cooperation with the Ministry of Natural Resources and Environment authorities to hide these activities against DAT Plastic In the end, the whistleblower decided to expose DAT Plastic's misconduct despite the dangers involved in doing so

CHAPTER 1: INTRODUCTION ABOUT WHISTLEBLOWER

Definition of whistleblower

The original definition of it was provided by US consumer advocate Ralph Nader in

1974 "A man or woman who, believing that the public interest overrides the interest of the organization he serves, blows the whistle that the organization is in corrupt, illegal, fraudulent, or harmful activity," according to Nader, is said to have engaged in whistleblowing (Jonh, Devitt K.;, 2015)

A whistleblower is someone who exposes corruption The term "whistleblower" is typically associated with the idea of a “truth-teller" or someone who "speaks truth to power,” even though it has occasionally been used negatively In addition to reporting on corrupt practices, whistleblowers assist in exposing a wide range of misconduct, such as the misappropriation of public funds, willful neglect, threats to the public's health and safety, environmental damage, or the concealment of any of these (Jonh, Devitt K.;, 2015)

The fact that Nader's definition characterizes the whistleblower as an employee, an organization member, or an "insider" makes it still very useful Someone who raises concerns about anything occurring within the organization they work for is known as a whistleblower They are far more likely to have access to information that others do not since they work for an organization Because of their insider status, they are typically better able to reveal wrongdoing, but they also run a considerably higher risk of facing retaliation

1.2 The importance of whistleblowers

It is widely known that one of the best strategies for combating corruption is whistleblowing Numerous instances of corruption and fraud that they are aware of were brought to light by employees who spoke out against misconduct to their employers, authorities, or the media Employees are most likely to find out about misconduct

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because they are part of the organization when it happens In fact, it's thought that whistleblowers uncover more workplace fraud instances than any other source (Jonh, Devitt K.;, 2015)

Types of whistleblowers

1.3.1 Internal whistleblower

While the term "internal whistleblowing” is not very precise, it often refers to an employee reporting wrongdoing to a member of the organization Anything from financial errors and unethical behavior to poor food handling and other grave misbehavior can be reported Almost everything that is in the public interest may be construed as being false, unlawful, or damaging When someone reports something wrong within the company, the expectation is that the organization will fix the issue without making it worse By doing this, the harm that results in can be minimized for the workers, the workplace, and the company Unless the organization rejects or does not take the reporting seriously, media attention and public trials are uncommon outcomes of internal whistleblowing (visslan, 2022)

1.3.2 External whistleblower

When someone finds significant wrongdoing by a group, authority figure, or individual and notifies a third party, this is known as external whistleblowing A supplier, rival, employee, or customer who notices that something is amiss can act as an external whistleblower External whistleblowing frequently results from a lack of internal remedies or adequate alternatives Therefore, external whistleblowing has the potential to destroy an organization's reputation (visslan, 2022)

1.4 Whistleblowing is ethical

Ethical whistleblowing must meet 5 conditions:

First, employees should inform the corporation when one of its decisions or products will seriously and significantly hurt the public or violate current laws Secondly, the employee

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has a duty to disclose and express moral concern whenever a significant threat of damage

is detected Third, the worker should follow all internal channels and the board of directors’ chain of command if their direct supervisor is inactive The employee must also present recorded proof that the company's practice, product, or policy gravely endangers the public or product users, as well as proof that the employee's assessment of the circumstances is correct and reasonable to an unbiased, unbiased observer Last, the employee must have valid reasons to believe that revealing the wrongdoing to the public will result in the changes necessary to remedy the situation If the whistleblower meets the above 5 conditions, it will be considered ethical whistleblowing

1.5 Whistleblowing is unethical

The whistleblower will have to be questioned and whistleblowing will be deemed unethical If the whistleblowing is motivated by an opportunity to gain financial gain or media attention, or the Employee is taking revenge against the company So, it's better to

be sure of your facts and it's better to have your evidence irrefutable before making a claim

1.6 Whistleblower protection act

In each country and each different region, there are different treaties for whistleblowers But in general, the common features of whistleblower nghts are the imposition of a specific deadline for handling the complaint, the guarantee of anonymity for the whistleblower, and the immediate payment of any part of the settlement that the whistleblower received enjoy

And the obligation to respond to compensation, which may include reinstatement to the same seniority status, back pay, interest, all compensatory damages to make the employee whole, and special damages

CHAPTER 2: WHISTLEBLOWER IN BUSINESS DAT PLASTIC

2.1 Overview about DAT Plastic company

2.1.1 Introduction

DAT Plastic Joint Stock Company produces household and industrial products from plastics and rubber Trading in household and industrial products from plastics and rubber Trading m molds for the plastic industry and molding industry Currently, DAT Plastic is a leading supplier of: Plastic pallets, plastic corrugated iron, plastic safes, plastic trash cans, high-tech plastics, and household plastics

in the Vietnamese market (Longthanhplastic, 2022)

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PLASTIC

COMPANY

Figure 2.2: Logo of DAT Plastic Joint Stock Company

2.1.2 Development history of DAT Plastic

DAT Plastic has gone through more than 24 years of development, leaving a strong mark

on the financial market with a stable and strong growth rate Currently, DAT Plastic has a large market share nationwide The formation and development process of DAT Plastic with notable milestones:

1994: Established the one-member liability company Minh Dat Plastic

2002: Changed name to DAT Plastic and became a joint stock company with charter capital of 50 billion VND Trading on the HOSE stock exchange with the trading code

DAT

2005: To meet the company's overall development needs and market needs in Ho Chi Minh City, the company built and put into operation a Showroom in District 6, Ho Chi Minh City

2008: Established a branch in Hanoi City Sales reached more than 1069 billion VND 2010: Expanded another branch in Kien Giang Investing more than 500 billion VND in warehouse operations

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2018, Developed a majestic new Showroom, groundbreaking in scale at 2-4 Nguyen Xuan Phung, Ward 2, District 6, Ho Chi Minh City The impressiveness of the Showroom affirms the Company's position in the plastic industry in Vietnam (Longthanhplastic, 2022)

2.1.3 The organization’s status

DAT Plastic is one of the leading plastic enterprises in Vietnam, the 6th largest after large corporations in 2019

Market Share of Vietnam Plastic Industry

a Binh Minh mTienPhong mAnPhat sNgocNghia€ = DAT Plastic } = Other

Figure 2.3: Market Share of Vietnam Plastic Industry

2.1.4 Organizational structure

DAT Plastic's organizational chart is managed by experienced experts, led by an experienced team, headed by Mr Le Van Dat

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TOAN PHÒNG KINH

DOANH &

CUNG UNG

PHONG KE

HOACH SX PHONG KY

2.1.6 Mission

Invest in modern, environmentally friendly lines and equipment to produce high quality products, ensuring durability and aesthetics for users In addition, DAT Plastic also commits itself: "If my business protects the environment second-class, no one will dare to admit it is first-class”

2.2 Case study about DAT Plastic company

2.2.1 Plastic Product Manufacturing Process at DAT

Plastic is a widely used material due to its lightweight, low cost, and ease of fabrication The plastic industry is increasingly playing a significant role in both daily life and production Besides its economic benefits, plastic manufacturing also has negative impacts on the human living environment, particularly through the generation of wastewater Therefore, establishing a wastewater treatment system for plastic production plants is necessary The process of manufacturing plastic products is a complex one with multiple stages Below is the detailed process:

* Plastic pellet formation: Using specialized machinery, raw plastic pellets

* Collection, sorting, and cleaning: Plastic pellets are sorted, cleaned, and rid

* Coloring: Depending on specific requirements, manufacturing facilities will color the pellets

* Plastic fiber drawing: Drawing plastic fibers of appropriate sizes and diameters

* Mixing additives: To enhance hardness, durability, and flexibility, additives

* Plastic molding: After mixing with additives, plastic is placed into molds to shape

¢« Trimming: Some products may have excess material, which affects aesthetics or usability

¢ Finishing, inspection, and delivery: Products meeting quality standards are packaged and distributed to customers (moitruonghopnhat, 28)

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