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CHAPTER BLOWING THE WHISTLE THE INSIDER ETHICAL DILEMMA SURGEON GENERAL'S WARNING: Smoking Causes Lung Cancer Heart Disease, Emphysema, And May Complicate Pregnancy Aviable in the Public Record. The extent to when Therdings nugaton were water documented in a New York Times article. The movie portrays Bergman providing the material for a New York Times Journal to refuse the B&W calms against Wigand en He accused the CEO of B&W. Thomas Sonderful representation in stating before congression ddictive Wand also claimed that cigarettes werd hearings in 1994 that he believed that we merely a very system for nicotine." Even though Wigand's credibility as a witness had been verbe. Ces Intly chose not to run Wigmes interview with CBS reporter Mke Wallace in fear of strom B&W for "torious interference which is defined as action by a third party in coming between two parties in a contractual relationship-that is ces would be held liable for intervering between Wigwa and B&W in the confidentiality agreement Wigand he signed). The fact that CBSS parent company was the final stages of negotiations to sell CBS to the Westinghouse Corp was seen as evidence of CBS Highly questionable motivation in avoiding the dang of totius interference. In reality, the fear of litigation was probably well founded. After ABC had runan equally controversial segment on its Day One show accusing Philip Morris of raising nicotine levels in cigarettes, Philip Morris, along with another tobacco company, RJ Reynolds, launched a $10 billion lawsut against ABC, which was forced to apologize and pay the tobacco companies' legal fees (estimated at over Dan Brandenburg/s/Getty Images With their classic portrayals of good guys against the cor porate bad guys, movie depictions of whistleblowers are by no means a new Idea Films such as The China Syl- drome, Silkwood, and The Insider have documented the risks and challenges whistle blowers face in bringing the information they uncover to the general public The movie The Insider documents the case of Dk Jeffrey Wigand and his decision to go public with information alleging that his employer, the tobacco company Brown & Williamson (B&W) was actively manipulating the nicotine content of its cigarettes. Wigand was portrayed by Russell Crowe, and the part of Lowel Bergman, the CBS 60 Min. utes producer who helped Wigand go public, was played by Al Pacino The movie captures several key issues that are common to many whistleblower cases Wigand was initially reticent to speak out about the information-partly out of fear of the impact on his family if he lost his severance package and health benefits under the terms of his confidentiality agreement with B&W. and partly because of his strong sense of integrity in honoring any contracts he had signed. It was only after B&W had chosen to modify the confidentiality agreement after firing Wigand (allegedly for poor communication skills that Wigand, angered by B&W's apparent belief that he wouldn't honor the confidentiality agreement he had signed, chose to go public B&W's response was immediate and aggressive. It won a restraining for "gagorder against Wigand to prevent him from giving evidence as an expert witness in a case against tobacco companies brought by the state of Mississippl, but he testified anyway. B&W then proceeded to undertake a detailed disclosure of Wigand's background in order to undermine his reputation, eventually releasing a thick report titled "The Misconduct of Jeffrey S. Wigand $15 million . In November 1998, B&W subsequently joined with three other tobacco giants-Philip Morris, RJ Reynolds, and Lorillard--in signing the Tobacco Master Settlement Agreement (MSA), settling state lawsuits against them in 46 states for recovery of the medical costs of treating smoking-related illnesses. The Settlement totaled $206 billion and included provisions that forbade marketing directly or indirectly to children and banned or restricted the use of cartoons, billboards, product placement, or event Sponsorship in the marketing of tobacco products As vice president for research and development for B&W. Wigand was a corporate officer for the company and, therefore, the highest-ranking insider ever to turn whistle-blower at the time. His reward for speaking out was that he never reached the $300.000 salary level he held at B&W again. At the time his story went public, he had found employment as a teacher in Louisville, Kentucky, teaching chemistry and Japanese for $30,000 a year. His marriage didn't survive the intense media scrutiny and B&W's attempts to discredit him. Six years later, Wigand was interviewed by Fast Company magazine, and he shared his unhappiness with the title of whistle blower. The word whistle blower suggests that you're a tattitale of the CHAPTER 7: BLOWING THE WHISTLE 137 you're somehow disloyal," he says. "But I wasn't disloyal in the least bit. People were dying. I was loyal to a higher order of ethical responsibility: QUESTIONS In December 2012, Wigand testified before the 1. Wigand was initially unwilling to go public with his Quebec Superior Court in a landmark Canadian Information What caused him to change his mind? class-action trial between an estimated 1.8 million 2. Did CBS pursue Wigand's story because it was the Quebecers and three major Canadian tobacco right thing to do, or because it was a good story? companies: Imperial Tobacco Canada Ltd. Rothmans. 3. Since CBS played such a large part in bringing Benson & Hedges, and JT1-Macdonald. Wigand's Wigand's story to the public, do you think the network former employer, B&W, was owned by British also had an obligation to support him once the story American Tobacco, as was Imperial Tobacco Canada broke? Explain why or why not. The trial was expected to last about two years, but by 4. Was CBS's decision not to run the interview driven by April 2019, the litigation was still ongoing after all any ethical concerns? three Canadian companies filed for creditor protection Sources: Elizabeth Gleick, 'Where There's Smoke. Time, Febru after losing their last appeal against a $15 billion ary 12, 1996, p. 54; Ron Scherer, "One Man's Crusade against judgment given in 2015. Tobacco Firms." Civision Science Monitor November 30, 1995, D.3: Chuck Salter, "Jeffrey Wigand: The Whistle-BlowerFast Company, March 2002. and Sidhartha Banerjee, 'The Insider, Jeffrey Wigand, Testifies in Landmark Quebec Tobacco Case." The Times Colonist, December 10, 2012