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Whistleblowers Shelby Abraham, Gladys Ambrosio, Vincent Chung, Lucia Lee, Andi Parsaulian
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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
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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
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Whistleblowing is a good thing with negative connotations. Intention: ‘ stop ’ the progression of wrong-doing. Consequences: Is it good? OrganizationStakeholdersWhistle-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 Positive Negative
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Protecting & Encouraging Whistleblowers If no protection wrongdoings remain undetected Need to overcome whistleblowers ’ fear of retaliation, alienation, peer recognition Whistleblowing culture and system
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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?
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‘ 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
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Whistleblower checklist Legal Affairs, BusinessWeek Online, 16 December 2002
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