Betty Vinson took a job as a mid-level accountant for $50 000 a year with a small long-distance company that grew up to become a giant telecom five years later. Hard-working and diligent, within two years Ms Vinson was promoted to a senior manager in the corporate accounting division. In her new job, she helped compile quarterly results, along with 10 employees who reported to her. Soon after taking the new position, her bosses asked her to make false accounting entries. At first, she said “no.” But continued pressure led her to finally cave in. Her decision to make the false entries came after the company’s chief financial officer assured her that he would assume all responsibility.

Over the course of six quarters, Ms Vinson made illegal entries to bolster the company’s profits at the request of her superiors. At the end of 18 months, she had helped falsify at least $3.7 billion in profits. Of course, the whole scheme unravelled, in what became the largest fraud case in corporate history.

Ms Vinson pleaded guilty to two criminal counts of conspiracy and securities fraud, charges that carry a maximum sentence of 15 years in prison. She was sentenced to five months in prison and five months of house arrest.

What would you have done had you been in Ms Vinson’s job? Is “just following orders” an acceptable excuse for breaking the law? If your livelihood is on the line, do you say “no” to a powerful boss? What can organizations do to lessen the chance that employees might capitulate to unethical pressures imposed by their boss?