Whistleblowers

1
Whistleblowers

• Shelby Abraham, Gladys Ambrosio, Vincent Chung,
  Lucia Lee, Andi Parsaulian

2
What is whistleblowing?

• Someone who raises alarms on corporate unethical
  misconducts
• Issue Courage vs. Treachery
• Characteristics
• Reports internally last resort ? report
  externally
• High moral values
• Ethical dilemma
• ? Short-term vs. Long-term
• ? Truth vs. Loyalty

3
Is it inevitable?

• Need to understand drivers
• Kantian theory ? understand consequences
• Conflicts between individual values and corporate
  culture or practices
• Awareness of their intention
• Risks
• Loss of job
• Ruined career ? not able to find employment

No clear-cut answers!! ? Personal beliefs values
4
Is it good?

• Whistleblowing is a good thing with negative
  connotations.
• Intention stop the progression of wrong-doing.
  
• Consequences

Organization Stakeholders Whistle-blower
Catalyst for change by exposing fraudulent behaviour Protection from further misconduct (thievery, gross profiteering, injustice) Internal affirmation of strength of moral character Clarity of Conscience in doing the right thing.
Possible dissolution or massive reorganization Employees Threatens stability of peoples jobs Shareholders Loss of investment Termination Rejection by peers, Long-term unemployment
Positive
Negative
5
Protecting Encouraging Whistleblowers

• If no protection ? wrongdoings remain undetected
• Need to overcome whistleblowers fear of
  retaliation, alienation, peer recognition
• Whistleblowing culture and system

6
Employing known whistleblowers

• Sherron Watkins ? Enron
• Cynthia Cooper ? WorldCom
• Coleen Rowley ? FBI
• Sarbanes-Oxley Act 2002 (anti-retaliation laws)
• Dilemmas for future employers
• Will they play along?
• Will they blow our cover?
• Trustworthy or big mouth?

7
Paying Whistleblower

• Compensation not in monetary value
• Potential to raise illegitimate claim (bounty
  hunter)
• Reduce potential social stigma of whistleblower
  as snitches
• Breed further distrustful environment
• Rewards in form of
• Protection
• Recognition/Image
• Higher status

8
Whistleblower checklist
Legal Affairs, BusinessWeek Online, 16 December
2002