ETHICS vs LAW: WHAT CORPORATE LAWYERS PROTECT

By Anivarth Parthasarathy

Who do lawyers really work for—the company or the truth? 

Corporate lawyers often find themselves at the intersection of law, profit, and ethics. But what happens when those three come into conflict? One of the most important ethical dilemmas in corporate law today is how lawyers handle whistleblowers, who are employees who expose a company’s wrongdoing from within. In theory, the law is meant to protect these individuals. In reality, they are often exposed and isolated. Sometimes, it’s the company’s lawyers who are leading the charge. 

THE RECENT ETHICAL PATTERN 

Several crucial whistleblower cases in recent years have highlighted how corporate lawyers and legal departments may prioritize profit over morality, raising serious ethical concerns about the role of legal counsel in protecting internal whistleblowers. 

The Theranos Scandal is one of many important cases in recent years that unearthed the ethical corruption of some corporate lawyers. When employees began to question the immoral methods used in the biotech startup, they revealed some serious issues with the accuracy, reliability, and safety of the tests. The Theranos legal team - comprised of many corporate lawyers – quickly shut down these whistleblowers by employing a series of aggressive tactics, including legal threats, close surveillance, and intimidation. 

This scandal, along with several other cases, reveal how legal frameworks can be manipulated in order to shield misconduct of corporations, emphasizing the urgent need for stronger protections for whistleblowers and greater ethical accountability in corporate law. 

WHAT’S NEXT? 

The legal world is slowly catching up. There have been some promising developments, such as the SEC whistleblower program, which aims to encourage whistleblowing practices through rewarding millions of dollars to whistleblowers who report corporate misconduct. Many corporate law firms are beginning to include whistleblower response protocol as a fundamental module of their ethics training program. 

FINAL THOUGHTS 

Legally, corporate counsel is meant to represent and support the organization. But ethically, many argue that lawyers have a higher responsibility to public interest, especially when safety, legality, or human rights are at stake. Unfortunately, the power of corporate lawyers is often used not to ensure justice, but to shield bad actors from scrutiny. 

While laws like the Whistleblower Protection Act exist, they are inherently reactive. They protect whistleblowers after the damage is done, rather than taking preventative measures. By setting a program that prevents injustice towards whistleblowers by corporate lawyers, the legal landscape can continue to be just and fair. Being a lawyer means understanding that doing what's right isn't always aligned with what's easy, or even what's profitable. 

CITATIONS 

Pan Macmillan, Everything you need to know about the Theranos scandal Pan Macmillan (2025), https://www.panmacmillan.com/blogs/literary/theranos-elizabeth-holmes-john-carreyrou (last visited May 23, 2025). 

Whistleblower program, U.S. Securities and Exchange Commission (2024), https://www.sec.gov/enforcement-litigation/whistleblower-program (last visited May 23, 2025).