You chose:
Approach the top management (your grandparents) quietly and secretly. Explain what is happening with padding the expense accounts and suggest that they develop a plan as to how to change this prevailing practice.
After hearing from you about the padding practice among the salespersons ,your grandarents felt shocked and outraged. Investigation of the expense accounts showed that the practice was wide-spread, and they realize that the Sales Manager must have known about and condoned the practice for a number of years. They are anxious to take immediate punitive action against the sales personnel and the manager. However, you believe this is both unwise for the performance of the firm and will lead to great hostility towards you as the whistle-blower. You feel that you need to defuse the situation.
You explain to your grandparents that since the practice is so widespread and entrenched, the sales personnel probably don't perceive it as unethical at this point. They will strongly resent any punitive action and this may have an adverse affect on sales revenue for the firm. It is in their best interests to look for root causes, such as below standard compensation, and introduce a plan to modify their behaviour that includes rewards as well as punishments for continuing the behaviour.
Believing that your grandparents will not be easily dissuaded from taking punitive action, you explain to them that if they do that, you will have to leave your sales position.
You approach the Sales Manager and say that you have been pressured by the salesmen to pad your expense account, and this made you very uncomfortable. You say that have already reported the padding to top management and he had better take action now. To back up your position, you admit that you are the granddaughter of the owners.
Believing that your grandparents will not be able to appreciate the need for a more sophisticated response, explain that you will have to leave the sales position if they take any strong measures against the sales personnel. Ask them to simply say that they have become aware of the practice and that it must end immediately.
