Moral dilemma at work

[DrumminBoy]

I'm a contract administrator for a small enterprise HW/SW reseller. I currently manage a multi-million dollar contract with one of the largest companies in the country to provide maintenance on their enterprise hardware.

At the onset of the contract, the owners of our company and our customer agreed that we would issue credits pursuant to the contract exactly as we received them from our supply chain, meaning we would keep our original margin on those moneys and would return our cost.

So far this year, we've removed around $600k (our cost) worth of services from the contract, and they should be receiving that amount in whole. When the owners of our company noticed how much money was being transferred, they asked me to facilitate an additional "cut" of 17.5%, or around $100k.

Based on the verbiage of the contract alone this "cut" is illegal, and I feel that I could be made an accessory if we were to ever be audited.

I'm considering telling our management that I don't want to be a part of it, but I'm fairly certain I'll end up getting fired, and the money will end up in our owners' pockets either way.

Opinions?

EDIT: I should mention that the amount of money our customer is expecting is based on earlier "estimates," which one of the owners had me low ball to begin with. We basically found that we would be getting much more, and that we could take the 17.5% cut without them ever knowing (unless they decided to audit the contract, of course).

 

[Juddog]

$100k is chump change, you should see how much Haliburton gets away with.

 

[Tweak155]

Don't do it if it is illegal. You may not win the fight but I'd live fine knowing that I did the right thing.

 

[Tweak155]

Another thing - Keep as much documentation on this as possible. If they fire you, you will have leverage on them.

 

[Blieb]

Your credibility is at stake. You owe it to the customer and yourself to be just.

Honestly ... knowing that they're doing this underhanded thing ... you won't want to work there much longer. They could pull one over on YOU next.

Explain to them the illegal and unethical state of affairs ... see how they react?

 

[Passions]

Don't do it. You could end up losing your job, your wife, your hair.

Ever see the movie, The Insider.

Life isn't good for whistleblowers.

 

[MrDudeMan]

You could always anonymously tip off the company getting screwed and they could initiate the audit or some other way to check on exactly what is happening with their money. That's what I would probably do.

 

[thepd7]

Get something in writing. If you have their request to do something illegal in writing then you have them by the balls if they fire you.

 

[sandmanwake]

You can always get another job. Can't make up the lost time if you go to jail.

 

[Phokus]

Yeah, send an email to your managers asking if it's legal and you have some concerns, if they email you back saying it's ok, forward that email to your gmail account and print it out for your records and cover your ass.... consider looking for employment elsewhere at the same time too.

 

[torpid]

I'm having trouble following the scenario. Exactly where did this $600k come from? You bought something from a third party, billed your customer too much, and now, per the contract, owe the customer the $600k in cost difference between what you charged them and the "actual" cost?

 

[compuwiz1]

You can't be fired for blowing the whistle on illegal activity. You need to find a way not to do this, even if that means starting with your supervisor first, then authorities, if that fails.

 

[jagec]

Originally posted by: Phokus
Yeah, send an email to your managers asking if it's legal and you have some concerns, if they email you back saying it's ok, forward that email to your gmail account and print it out for your records and cover your ass.... consider looking for employment elsewhere at the same time too.

I agree. If you're working for a company whose higher-ups are corrupt, your only choices are either to join in their corruption, to quit, or to never seek any advancement beyond very low-level jobs. Get records, be honest, and if they fire you, explaining the circumstances could actually work in your favor, since it shows you're principled.

 

[alchemize]

It's not illegal, it's against the terms of the contract. Kinda like you can't steal music.

 

[torpid]

Originally posted by: alchemize
It's not illegal, it's against the terms of the contract. Kinda like you can't steal music.

They would be defrauding another company. I am fairly certain it would be illegal. It is effectively stealing from the other company.

 

[bctbct]

Only 1 way to solve this, 3 way split

you, company,ATOT

I would prefer my cut in cash please.

Seriously, there is no way to win in this senario. If it was me I would keep my mouth shut and pretend you know nothing about it.

 

[K1052]

1)Get resume in order.

2)Document management's request, back up emails and any pertinent papers to a secure off site location.

3)Discuss the possible legal ramifications with your management and your discomfort at violating the contract.

4a)Get fired on the spot.
4b)Get fired later for manufactured cause
4c)Management backs down (most unlikely)

5)Sue company for wrongful termination wielding said documents that would become public record. Other company would then peruse legal action

 

[alchemize]

Originally posted by: torpid

Originally posted by: alchemize
It's not illegal, it's against the terms of the contract. Kinda like you can't steal music.

They would be defrauding another company. I am fairly certain it would be illegal. It is effectively stealing from the other company.

It depends. Are they just not paying the company the full amount back, waiting for them to ask for it? Or are they destroying/modifying records...

 

[Q]

Originally posted by: Tweak155
Another thing - Keep as much documentation on this as possible. If they fire you, you will have leverage on them.

Good thought

 

[Chryso]

Originally posted by: compuwiz1
You can't be fired for blowing the whistle on illegal activity. You need to find a way not to do this, even if that means starting with your supervisor first, then authorities, if that fails.

No, you can't technically be fired for whistle blowing. However, whistle blowers tend to lose their jobs for lots of other reasons that just happen to occur right after they blow the whistle.

 

[sygyzy]

Originally posted by: torpid
I'm having trouble following the scenario. Exactly where did this $600k come from? You bought something from a third party, billed your customer too much, and now, per the contract, owe the customer the $600k in cost difference between what you charged them and the "actual" cost?

I also don't understand this scenario the way the OP wrote it.

 

[ryan256]

Originally posted by: Chryso

Originally posted by: compuwiz1
You can't be fired for blowing the whistle on illegal activity. You need to find a way not to do this, even if that means starting with your supervisor first, then authorities, if that fails.

No, you can't technically be fired for whistle blowing. However, whistle blowers tend to lose their jobs for lots of other reasons that just happen to occur right after they blow the whistle.

BFT!

 

[IronWing]

Originally posted by: Chryso

Originally posted by: compuwiz1
You can't be fired for blowing the whistle on illegal activity. You need to find a way not to do this, even if that means starting with your supervisor first, then authorities, if that fails.

No, you can't technically be fired for whistle blowing. However, whistle blowers tend to lose their jobs for lots of other reasons that just happen to occur right after they blow the whistle.

In a private company? Unless the company has specific whistle blower protection policies his butt can be out the door today. Whistle blower laws are for civil service jobs, not the private sector. If the feared fraud is against a government entity then it is a criminal offense to facilitate it. Otherwise contract law prevails.

 

[kranky]

I understand the scenario to be this: OP's firm provides services to a Big Company (BigCo). If BigCo reduces the amount of services required, then OP's firm will reduce their billing by the exact amount of savings OP's firm gets. In other words, If OP's firm saves $100 due to a change by BigCo, then they reduce their billing to BigCo by $100.

Now the OP is being asked to cover up $100K of cost so BigCo only gets back $500K when they should have received $600K based on the contract change.

OP: you are in a tough spot. You feel you might be breaking the law if you do it, and you might get fired if you don't.

I can only tell you what I did in a somewhat similar situation. I told my boss that I felt what I was asked to do was illegal and unethical, and just as I am completely honest in my dealings within the company, I have to act the same way in my duties with customers. I volunteered to be reassigned to a different job but reiterated that in the past he had always appreciated my honesty at work and hoped he would respect that I could not do what I was being asked to do.

I figured that even if I got fired, I would still have self-respect. Once you get your hands dirty like that, it's never a one-time thing. And you can never object later because you went along with it in the past.

 

[shabby]

Originally posted by: Blieb

Explain to them the illegal and unethical state of affairs ... see how they react?

Probably with laughter? Oh and you're fired.