Chapter #4 "Whistle-Blowing"

Reasons that Support having a Whistle-Blower Policy

- allows companies to handle internal problems that might occur - employees need to be assured that there will not be retaliation by the firm - policy should show that the firm is committed to protecting whistle-blowers

Internal Channels

- did the whistle-blower try to work through internal channels first? - Have all internal channels and steps short of whistle-blowing been exhausted? - whistle-blowing should be a last resort

Adequate Facts/Evidence

- does the whistle-blower have adequate facts/evidence to back up their claims - does the whistle/blower/employer have enough experience to know what they are talking about? - whistleblowing can cause irreparable harm if they turn out to be unfounded or misinterpreted - proof should meet the ordinary legal standard of a preponderance of the evidence

Non-Normal Channel

- information is released through outside channels

Sufficient Situation

- is the situation of sufficient moral significance/importance to justify whistleblowing? - there should be imminent harm/public harm to justify whistle-blowing

Chance of Success

- is there a chance for success/change if I blow the whistle? - blow the whistle only when there is a reasonable chance of achieving that good

Sarbanes-Oxley Act

- legal protection for people in the private sector

Reasons why you wouldn't want to be a whistleblower...

- lose your job - lack promotion - "black listed" - may never get another job in your field - harmed/decimated character - lose personal income - legal expense - personal relationship problems - may have to move out of the area - stress!!

Limits to Loyalty

- reasonable - employers don't own you - if illegal/crime is involve You can still be a loyal employee by blowing the whistle! - choice: speak out or leave

Employee/Member of an Organization

- someone who is not an outsider/witness

Non-public Information

- the facts that are revealed are not typically known

Voluntarily

- the information is released voluntarily

Moral Protest

- the whistle blower's motive is to correct some wrong

Misconduct

- there must be some misconduct on part of the organization of some of its members

Loyalty Dilemma

- Employers: principal - Employees: agents As an agent - behave as directed - protect confidential information

My Responsibility

- Is it your job to be correcting the issue? (blowing the whistle) - What is my responsibility in view of my role in the organization? - an employee is more justified (and may have an obligation) to blow the whistle when the wrongdoing concerns matters over which the employee had direct responsibility

Best way to blow the whistle

- What is the best way to blow the whistle? - develop a clear plan of action, don't blow the whistle impulsively - the less information that is revealed, the less likely an employee is to violate any duty of confidentiality

Whistleblower Definition

- Whistle-blowing is the voluntary release of nonpublic information, as a moral protest, by a member or former member of an organization outside the normal channels of communication to an appropriate audience about illegal and/or immoral conduct in the organization or conduct in the organization that is opposed in some significant way to the public interest

Arguments For Whistle-Blowing (PROS)

1) Utilitarianism/Benefits - protect public from illegal conduct 2) Employee Knowledge - employees know the situation best, so they are the best people to blow the whistle 3) Freedom of Speech - (depends on if information is confidential/trade secrets) conscience should be your guide in areas of moral/legal conduct

Arguments Against Whistle-Blowing (CONS)

1) abuse by employees: bad intentions, people who don't want to get fired, people trying to get money (legal) 2) Interfere with Employer's Rights: it costs money for employers to set up a department regulating whistle-blowers 3) Other People could be Harmed: if whistle-blowers are protected, other people could be let go for other unjust reasons and not receive protection

Reasons to still whistle blow despite negative effects

1) legal liability - could face legal charges if you don't whistle blow (risk monetary charges) 2) illegal - could risk jail time

Definitions of a Whistleblower (list of requirements)

1. Employee/member of an organization 2. Non-public information 3. Misconduct 4. Non-Normal Information 5. Voluntary 6. Moral Protest

What Makes up a Whistle-Blower Policy?

1. Statement of Responsibility 2. System to Report 3. Qualified person to receive the W.B. Report w/ authority to correct the problem 4. Appropriate Action 5. Guarantee against Retaliation

Conditions Necessary to be considered Whistle-Blowing

1. sufficient situation 2. facts/evidence 3. internal channels 4. best way 5. my responsibility 6. chance for success