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Whistleblowing: Definition
A whistleblower is an employee, former employee, or
member of an organization, especially a business or government agency, who reports misconduct to people or entities that have the power and presumed willingness to take corrective action.
Generally the misconduct is a violation of law, rule, regulation
and/or a direct threat to public interest, such as fraud, health/safety violations, and corruption.
Benefits
Whistleblowing leads to good and bad results. First, the
benefits of carefully considered whistleblowing can lead to the end of unethical business practices. The lives of individuals and whole communities have been saved by whistleblowers.
society. Businesses that engaged in unethical practices have been shut down because of the actions of whistleblowers.
find out the whether the staff have wandered or otherwise left the acceptable assumed track.
Whistle blowing mechanism such as hotlines, ombudsmen,
administrating annual compliance. This mechanism should be part of your companies strategy.
Detriments
An employee who witness unethical business practice at work
Company loyalty is an internally held value. When should an employee blow the whistle? When should he
Whistleblowers: Examples
Jeffrey Wigand- The Insider
FDA Whistleblower
The Insider
Jeffrey Wigand, vice president for tobacco research and
development at Brown & Williamson: Wigand became the whistle-blower on Big Tobacco, telling how the industry minimized tobacco's health and safety issues. His story was told in the movie The Insider. The tale gets nasty. Wigand was fired in 1993. His former employer publicized unsubstantiated allegations of shoplifting and domestic abuse from his past. He went on to assist the U.S. Food and Drug Administration in its investigation of the tobacco industry.
Wigand now runs a nonprofit foundation in South Carolina
devoted to educating children about health issues, including tobacco use and alcohol consumption.
CASE
An executive of a large company learns that the company is violating the state antipollution law by dumping chemicals into the lake bordering its plant. The state inspectors are being bribed to ignore the violation. What are the executives options? What are the consequences of each option? Which option should the executive choose?