Adam Williams should analyze with detail the case in which he is involved. At first glance there is a dilemma in this case because we have a conflict between different liabilities and responsibilities.
The code of ethics of every professional organization is based in at least one of the four principal ethical theories (Mill's utilitarism, Kant's formalism, Locke's right and Aristotle's virtue). Thus, every professional code of ethic establishes as paramount the social welfare, health and security; in addition, following the social paramount, we have the commitment with the employer, customers, colleges, supervised people, the profession, and finally the professional him/herself. Exhibit 1-5 shows the ethical guidelines issued by IMA where the principles include honesty, fairness, objectivity and responsibility. †
Adam Williams' dilemma is based in the responsibility contradiction between the public and the company that he should consider. And face on any dilemma, he should proceed with care and responsibility trying to fix the problem with the minor damage.
So, the first alternative (seek the advice of his supervisor, the controller) analyzed by Adam William it is a good start but it could not be enough to fix the problem. Probably Adam William will need to consider something else, because he knows that his supervisor know the issue and didnít take any action.
The second option, anonymously release the information to the local newspaper, is a wrong variant of blow the whistle option described earlier. This is considered an unprofessional conduct and liable for punishment. In case he decides to blow the whistle should be with regulatory agencies, never to the local newspaper or similar.
The third option, discuss the situation with an outside member of the board Ö, is an option inside the internal discussion and it could be considered as a correct course of action.