2. Whistleblowing: Definition A whistleblower is an employee, former employee, ormember of an organization, especially a business orgovernment agency, who reports misconduct to people orentities that have the power and presumed willingness to takecorrective action. Generally the misconduct is a violation of law, rule, regulationand/or a direct threat to public interest, such as fraud,health/safety violations, and corruption. 3. Benefits Whistleblowing leads to good and bad results. First, thebenefits of carefully considered whistleblowing can lead to theend of unethical business practices. The lives of individualsand whole communities have been saved by whistleblowers. The actions of whistleblowers are potentially beneficial tosociety. Businesses that engaged in unethical practices havebeen shut down because of the actions of whistleblowers. 4. Whistleblowing and HR Actioners Determining whether your company has the mechanism tofind out the whether the staff have wandered or otherwise leftthe acceptable assumed track. Whistle blowing mechanism such as hotlines, ombudsmen,administrating annual compliance. This mechanism should bepart of your companies strategy. 5. Detriments An employee who witness unethical business practice at workmay want to think carefully before informing to theauthorities. Company loyalty is an internally held value. When should an employee blow the whistle? When should heor she keep quiet? 6. Guidelines for Whistleblowing1. Magnitude of consequence2. Probability of effect3. Temporal immediacy4. Proximity5. Concentration of effort 7. Whistleblowers: Examples Jeffrey Wigand- The Insider FDA Whistleblower 8. The Insider Jeffrey Wigand, vice president for tobacco research anddevelopment at Brown & Williamson: Wigand became thewhistle-blower on Big Tobacco, telling how the industryminimized tobaccos health and safety issues. His story wastold in the movie The Insider. The tale gets nasty. Wigand wasfired in 1993. His former employer publicized unsubstantiatedallegations of shoplifting and domestic abuse from his past. Hewent on to assist the U.S. Food and Drug Administration in itsinvestigation of the tobacco industry. Wigand now runs a nonprofit foundation in South Carolinadevoted to educating children about health issues, includingtobacco use and alcohol consumption. 9. FDA whistleblowers: Robert MisbinRobert Misbin, medical officer, Food and Drug Administration:The scientist blew the whistle on the dangers of the diabetesdrug Rezulin. He resigned from the FDA in the fall of 2000,complaining that politics and bureaucratic concerns hadreplaced sound medical judgment in approving drugs. At issue:that drug maker Warner-Lambert Inc. had pressured the FDA toapprove Rezulin, despite a number of patient deaths from liverfailure. Rezulin was recalled in 2000, the same year that Warner-Lambert was acquired by Pfizer. 10. CASEAn executive of a large company learns that the company isviolating the state antipollution law by dumping chemicals intothe lake bordering its plant. The state inspectors are beingbribed to ignore the violation. What are the executives options?What are the consequences of each option? Which optionshould the executive choose?