Ethical Whistleblowing

A whistleblower is a person who exposes secretive information or activity within a private or public organization that is deemed illegal, unethical, or not correct. The information on alleged wrongdoing can be classified in many ways: violation of company policy/rules, law, regulation, or threat to public interest/national security, as well as fraud, and corruption.[3] Those who become whistleblowers can choose to bring information or allegations to surface either internally or externally. Internally, a whistleblower can bring his/her accusations to the attention of other people within the accused organization such as an immediate supervisor. Externally, a whistleblower can bring allegations to light by contacting the third party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers, however, take the risk of facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.

Whistleblowing is an ethical thing to do. It addresses wrongdoing and allows justice to reach the depths of companies that otherwise may remain unexposed. Honesty amongst employees helps to cultivate dedication towards the company’s mission. Similarly, transparency facilitates clear and effective business communication. Whistleblowing is vitally important in protecting a company’s customers and indirectly protecting your organization through combatting fraud and misconduct. The dire alternative is risking legal prosecution, major fines, and a public scandal, accompanied by a substantial loss of reputation. Removing these risks means that employees can focus on more important matters, such as core business needs and the organization’s success. On a larger scale, fraud costs taxpayers an inordinate amount of money every year. By promoting a whistleblowing culture we can crack down on fraud and prevent this unnecessary loss of capital.

is whistleblowing ethical?

Such conversations provide great scope for dizzying philosophies. But let’s keep it simple for the moment — surely at a base level, reporting wrongdoing must be ethical?

The act of whistleblowing can cause a conflict of interest between the personal, organizational and societal spheres.

Much of this conflict stems from the context that one views a whistleblower — as someone sharing knowledge of misconduct for the benefit of others or someone who is a ‘grass’ and acting ‘disloyal’ to their organization.

The ‘Broken Windows’ theory championed by former Mayor of New York, Rudolph Giuliani, promotes an ideology where communities will report or fix a broken window. This means rectifying even the smallest incidents of wrongdoing, thereby instilling similar responsibilities in others and creating a better environment for all.

Advocating whistleblowing within organizations follows a similar premise. By fostering a culture of self-regulation and accountability, management can help ensure their staff and business operations are protected.

Public perception of ethics and whistleblowing

Whistleblowing can be a divisive topic and, while most would agree with the value of reporting wrongdoing and condone good organizational governance, external contexts can color acceptance and perception.

There are elements of chicken and egg as attitudes that are encouraged in the workplace extend to the street. If businesses promote good corporate governance for all, whistleblowing needn’t be viewed negatively or as solely the preserve of business or community leaders.

In 2007, a survey commissioned by the US Democracy Corps of 1,014 “likely voters” revealed that 70% supported whistleblower protections. Surprisingly, 40% stated that they would be much more likely to vote for a congress that enacts such legislation.

When we vote, use services or entrust our money with banks we want to know that they are secure and working in our best interests.

If an engineer at a water sanitation plant in your area uncovered safety issues we would hope they had ample opportunity to report this without fear of reprisal.

Personal perception of ethics and whistleblowing

The whistleblower is ultimately torn between loyalty to their employer (or the subject of their revelation) and their moral commitment to the law and society at large. Many feel they have the most to lose, at least in the first instance.

It could be argued that it is incongruous with human nature to display loyalty to a bureaucratic organization because it is composed of so many different people.

This de-humanizing environment could distort the whistleblower’s perception of their relevance within a company or their ability to influence change, thus degrading their sense of responsibility and motivation to report.

As long as the whistleblower is sure that their motivations are sound and that they are confident in the system they should not hesitate to relay such information.

Whistleblowers and the media have enjoyed a somewhat symbiotic relationship. Though agendas and motivations may vary, they share the ambition of exposing wrongdoing and encouraging changes in systems.

Recent high profile cases, such as the care homes scandal, are excellent examples of individuals reporting for altruistic reasons.

If an individual feels disenfranchised by their position in the process, to transfer it to the public sphere might seem their best or only option. It’s up to business and community leaders to ensure this does not happen.

Elements of Ethical Whistle blowing..

1. Ensure the Anonymity of the whistle blower : Potential whistle-blowers need to be assured there will be no workplace repercussions or external repercussions.so anonymity is the surest way to achieve that.
2. Make reporting easy : This may be something like a hotline or helpline with a toll free number that is prominently included in the workers’ orientation and routine communications with the organization.
3. Be prepared to act when fraud is detected : If you determine that it is likely that fraud occurred you should have a plan for responding that includes who should receive the report and what steps they take to determine a response.
4. Establish consistent protocols across all departments : Every unit in the organization should be on the same page regarding fraud reporting. It is useful to have a single manager who is identified as a fraud prevention leader.
5. Report to authorities appropriately : Legal authorities should be involved when appropriate and in a consistent way dictated by policy guidelines.
6. Set up recording and tracking processes : Each reported fraud should trigger a case file or incident report that collects relevant objective information and retains it in the system. Progress of each case from report to resolution should be included in the records.