Lecture 7-Whistle Blowing

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    Whistle Blowing

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    Action+Reason

    Report a friend who was cheating on a quiz

    Report to top management about a teacher who

    gave marks as a special favor

    Report a friend who didnt put his due share in

    the group project

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    What is Whistle Blowing?

    An attempt by a member or former member ofan organization to disclose wrongdoing in or bythe organization.

    Can be internal or external Internal- If wrongdoing is only reported to those

    higher in the organization

    External-When wrongdoing is reported to externalindividuals or bodies such as government agencies,

    newspapers, or public interest groups

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    Barriers to whistle Blowing

    The ambivalent attitude toward

    whistleblowers ensures that, even with legal

    protection, they may face retaliation in subtle

    ways:

    being shunned by co-workers,

    being closely supervised,

    feeling alienated etc

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    Barriers to

    Internal Whistle Blowing

    A lack of trust in the internal system

    Unwillingness of employees to be "snitches"

    Belief that management is not held to the same standard

    Fear of retaliation

    Fear of alienation from peers

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    Steps for Creating a Whistle blowing

    Culture

    Create a Policy

    A policy about reporting illegal or unethical practices

    should include

    Formal mechanisms for reporting violations, such ashotlines and mailboxes

    Clear communications about the process of voicing

    concerns, such as a specific chain of command, or the

    identification of a specific person in the organization Clear communications about bans on retaliation

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    In addition, a clear connection should exist

    between an organization's code of ethics and

    performance measures. For example, in the

    performance review process, employees can beheld accountable not only for meeting their goals

    and objectives but also for doing so in

    accordance with the stated values or business

    standards of the company.

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    Get Endorsement From Top Management

    Top management, starting with the CEO, should

    demonstrate a strong commitment to

    encouraging whistle blowing.

    This message must be communicated by line

    managers at all levels

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    Publicize the Organization's Commitment

    To create a culture of openness and honesty, it isimportant that employees hear about the policy

    regularly. Top management should make every effort to

    talk about the commitment to ethical behavior inmemos, newsletters, and speeches to company

    personnel. Publicly acknowledging and rewarding

    employees who pinpoint ethical issues

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    Investigate and Follow Up

    Managers should be required to investigate all

    allegations promptly and thoroughly,

    report the origins and the results of the

    investigation to a higher authority

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    Assess the Organization's Internal Whistleblowing System

    Find out employees' opinions about the

    organization's culture vis--vis its commitmentto ethics and values.

    For example, Sears conducts an annualemployee survey related to ethics. Some

    questions are: Do you believe unethical issuesare tolerated here? Do you know how to reportan ethical issue?

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    External Whistle Blowing

    Is whistle blowing always wrong because

    employees have a contractual duty to be

    loyal to their employer and to keep all

    aspects of business confidential?

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    Partially true but conclusion is false

    Agreements and contracts are void if they

    require a person to do something immoral

    If an employee has a moral obligation to prevent

    other people from being harmed and the only

    way to prevent the harm is by blowing the

    whistle on ones employer, an employmentagreement cannot require the employee to

    remain silent

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    External whistle blowing is morally justified if:

    There is clear, substantiated evidence that theorganization is engaged in some activity that is seriouslywronging or will wrong other parties

    Serious attempts to prevent the wrong through internalwhistle blowing have been tried and failed

    It is reasonably certain that external whistle blowing willprevent the wrong

    The wrong is serious enough to justify the injuries thatexternal whistle blowing will inflict on oneself, familyand other parties