Transcript Whistleblowers

Whistleblowers
Shelby Abraham, Gladys
Ambrosio, Vincent Chung,
Lucia Lee, Andi Parsaulian
What is whistleblowing?
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Someone who raises alarms on corporate unethical
misconducts
Issue – Courage vs. Treachery
Characteristics
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Reports internally; last resort  report externally
High moral values
Ethical dilemma
 Short-term vs. Long-term
 Truth vs. Loyalty
Is it inevitable?
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Need to understand drivers
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Kantian theory  understand consequences
Conflicts between individual values and corporate
culture or practices
Awareness of their intention
Risks
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Loss of job
Ruined career  not able to find employment
No clear-cut answers!!  Personal beliefs & values
Is it good?
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Whistleblowing is a good thing with negative connotations.
Intention: ‘stop’ the progression of wrong-doing.
Consequences:
Organization
Positive
Negative
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 people’s jobs
Shareholders: Loss of
investment
Termination
Rejection by peers,
Long-term
unemployment
Protecting & Encouraging
Whistleblowers
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If no protection  wrongdoings remain
undetected
Need to overcome whistleblowers’ fear of
retaliation, alienation, peer recognition
Whistleblowing culture and system
Employing known whistleblowers
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Sherron Watkins  Enron
Cynthia Cooper  WorldCom
Coleen Rowley  FBI
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Sarbanes-Oxley Act 2002 (anti-retaliation laws)
Dilemmas for future employers
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Will they play along?
Will they blow our cover?
Trustworthy or big mouth?
‘Paying’ Whistleblower
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Compensation not in monetary value
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Potential to raise illegitimate claim (bounty hunter)
Reduce potential social stigma of whistleblower as
‘snitches’
Breed further distrustful environment
Rewards in form of:
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Protection
Recognition/Image
Higher status
Whistleblower checklist
Legal Affairs, BusinessWeek Online, 16 December 2002