Chapter 7 Blowing the Whistl môn Principle of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Chapter 7 lowing the Whistle
ght © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-H Learning Outcomes
xplain the term whistle-blower, and distinguish between
nternal and external whistle-blowing.
nderstand the different motivations of a whistle-blower.
valuate the possible consequences of ignoring the concerns of a whistle-blower.
commend how to build internal policies to address the needs of whistle-blowers.
nalyze the possible risks involved in becoming a whistle- blower.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu What is Whistle-Blowing? Whistle-blower
•Employee who discovers corporate misconduct and chooses to bring it to the attention of others. Internal whistle-blowing
•Employee discovering corporate misconduct and bringing it to the
attention of his or her supervisor. External whistle-blowing
•Employee discovering corporate misconduct and choosing to bring it to
the attention of law enforcement agencies and/or the media.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu Ethics of Whistle-Blowing 1
histle-blowers may be applauded as models of honor and ntegrity.
scovery of illegal activities before the situation is revealed in
he media could potentially save organizations millions of dollars.
scovery of potential harm to consumers offers
mmeasurable benefit to the general public.
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contrast to perceptions of whistle-blowers being brave and
iseworthy, they are considered to:
motivated by money or personal egos.
ve breached the trust and loyalty they owe to their employers.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu
When is Whistle-Blowing Ethical? 1
hen the company, through a product or decision, will cause
serious and considerable harm to the public or break existing aws.
hen the employee identifies a serious threat of harm.
hen the employee’s immediate supervisor does not act, the
employee should exhaust the internal procedures and chain
of command to the board of directors.
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When is Whistle-Blowing Ethical? 2
ployee must have documented evidence that:
or her view of the situation is accurate.
e firm’s practice, product, or policy threatens the public or product user.
ployee must have valid reasons to believe that revealing the
ongdoing to the public will result in the changes necessary to medy the situation.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu Civil False Claims Act
histle-blowers who expose fraudulent behavior against the
government are entitled to between 10 and 30 percent of the amount recovered.
rengthened to make it easier and safer for whistle-blowers o come forward.
ui Tam lawsuits: Brought on behalf of the federal
government by a whistle-blower under the False Claims Act 1863.
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When is Whistle-Blowing Unethical?
otivated by financial gain or media attention.
mployee is carrying out a vendetta against the company.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu Duty to Respond
mployees are becoming increasingly willing to respond to
any questionable behavior they observe in the workplace.
sponding to whistle-blowers means addressing their concerns and not firing them.
ior to 2002, legal protection for whistle-blowers existed only
hrough legislation that did not offer any safeguards against retaliation aimed at them.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu
he Whistleblower Protection Act of 198
ddressed the issue of retaliation against federal employees.
mposed specific performance deadlines in processing whistle-blower complaints.
uaranteed anonymity of the whistle-blower.
quired prompt payment of any portion of the settlement
entitled to the whistle-blower.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu Sarbanes-Oxley Act of 2002
kes an integrated approach of whistle-blowing by:
hibiting retaliation against whistle-blowers.
couraging the act of whistle-blowing itself.
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dd-Frank Wall Street Reform and Protection A
roduced a new reward program for whistle-blowers who
ort securities law violations to:
curities and Exchange Commission (S E C).
mmodity Futures Trading Commission (CFTC).
gislation stipulates that if more than $1 million is collected, th istle-blower is entitled to:
tween 10 and 30 percent of collected amount.
ar entitlement to job and confidentiality protection.
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Addressing the Needs of Whistle-Blower
ell-defined process to document how whistle-blower complaints are handled.
histle-blower hotline: Telephone line by which employees
can leave messages to alert a company of suspected
misconduct without revealing their identity.
ompt and thorough investigation of all complaints.
etailed report of all investigations.
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Whistle Blowing as a Last Resort
ceasing media attention and the terminal damage should be
nsidered a catalyst for the organization to take remedial steps
fortunately, executives prefer to: ry the information. credit the evidence.
their employees in restrictive confidentiality agreements.
opyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Edu