Unit 4- WhistleBlowing Flashcards
Case Sample- Sherron Watkins- Enron, Cynthia Cooper- WorldCom, Coleen Rowley- Fbi agent who charged White House Headquarters on neglecting evidence that could have been used to prevent 9/11
What is Whistle Blowing?
The release of information by a member/ former member of an organization on illegal/immoral conduct of business or conduct that us not in the public’s interest.
What constitutes whistle-blowing?
The individual must be inside an organization and volunteers to expose wrongdoing to the outside world, with the goal of bringing about change
What are the 6 Justifications for Whistleblowing?
- Is the situation of sufficient moral importance
- Do you have all the facts and have you properly understood their significance?
- Have all internal channels of whistleblowing been exhausted?
- What is the best way to blow the whistle?
- What is my responsibility in view of my role in the organization.
- What are the chances for success?
Existing Protection for Whistleblowers
- Occupational Health and Safety acts
- Sarbanes-Oxley (SOX) Act
- Whistle-blower Act of Jamaica 2012
- 2010 Wall Street Reform and Consumer Protection Act.
Why should whistleblowing be allowed?
- Contribution to society: If Whistle-Blower come forward dangers to the public will be brought to the light
- Freedom of Speech- we have moral right to freedom of speech and it should be protected.
What are two possible drawbacks of Whistleblowing?
- Whistle-blowing might be used by employees to:
Protest company decisions or to get back at their employers,
Cover up their own incompetence or inadequate performance - Legislation protecting whistle-blowers would encroach on the right of employers to conduct their business as they see fit- adds layer of legal restraints to already existing ones, makes it harder for managers to run a company.
Benefits of Developing a Policy
Company can learn about problems early, before issue becomes public.
Affirms company’s good ethics and creates an ethical corporate climate
Dangers of Making a Whistle-blowing Policy
- Encourages employees to report on each other
- Can create an environment of mistrust
- Involves danger by encouraging false accusations
Components of a Policy
- An effectively Communicated statement of responsibility
- A clearly defined procedure for reporting
- Well-trained personnel to receive and investigating reports.
- A commitment to take appropriate action
- A guarantee against retaliation (E.g. occupational detriment)