The Insider

Thesis Statement

The purpose of this paper is to provide a summary about the ethical and legal issues that took place in the hit Hollywood movie “The Insider” (Touchstone Pictures, 1999, Michael Mann producer/director.) I will give a brief update of the events depicted in the film and how the events relate to the various academic concepts of Business and Organizational Ethics. I will analyze the principle characters in the movie and give my personal opinion on their decisions and actions.

The Insider

The Insider gives the account of events that pitted an average man against the tobacco industry. Jeffrey Wigand is a former tobacco executive who was recently fired by his employer, Brown and Williamson Tobacco Corporation. Wigand was a scientist in the research and development field for Brown and Williamson, the number three tobacco company in the world. When Wigand is confronted by Lowell Bergman, a 60 Minutes producer, he is faced with an ethical dilemma of whether to uphold his fiduciary duties to Brown and Williamson, or follow his personal moral philosophies and values, by going public with the lies in the tobacco industry.

Jeffrey Wigand comes across as a loving family man who places providing for his family at the top of his list of priorities. He continues to question how he will support his family while making the decision to follow his moral values by outing the tobacco industries secrets and lack of social responsibility. I could definitely see the, “six spheres of influence” at work while Wigand worked through is conflicts of interest. The first influence that appeared to me was that of the legal system. By realizing he is bound to speak freely about his knowledge due to the corporate confidentiality agreement, he initially refuses to speak to Bergman.

He his aware he has a duty of loyalty (to act solely for the benefit of his principle in all matters directly connected with the agency undertaking) to Brown and Williamson as a former fiduciary of the company (Bagley et al. 167.) By violating the confidentially agreement and his fiduciary duties he could legally be held responsible. Knowing that if he violates the agreements his severance package would be voided, he struggles with wanting to protect and care for his family or help the community understand the harmful secrets the tobacco industry hides. In the end, he follows his personal values and principles by choosing to speak publicly.

On the other hand, the “seven dwarfs” of the tobacco industry lack any form of honesty, trust, or values. Their culture is one completely immobilized around sales and profit with no regard to their responsibilities to the consumer or community. The tobacco industry lacks any form of social responsibility by imposing a negative impact on society and blatantly ignoring health risks. Wigand even went as far to say the seven dwarfs perjured themselves by willingly lying about the harmful effects of tobacco. Thomas Sandafer, the CEO of Brown and Williamson, consciously ignored health considerations that were brought to his attention by Wigand. Their actions show a complete lack of ethical decision making in the tobacco business, along with serious illegal activity.

Though it couldn’t be proven, it would be pretty safe to say Brown and Williamson were behind the stalking and death threats of Wigand and his family.

The Sarbanes-Oxley Act, enacted in 2002, makes it illegal