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The Importance of WhistleBlowing

Guest post by: Jennifer Loftus

Article Overview: Whistle blowing. While some may view it as “snitching”, others may view it as bravery and a dedication to proper ethics. In this issue of Astronology, we take a look at the importance of whistle blowing, along with the positive and negative benefits from it.

The Importance of WhistleBlowing

What is Whistle Blowing? Internal whistle blowing is the reporting of misconduct of an employee (or superior). Misconduct of course, can range from between minor issues, to complex, corporate-changing deeds of bad behavior/leadership. A prime example of how important whistle blowing can be for an organization are the past scandals of Enron, WorldCom, and the recent Bernie Madoff scandal of 2008. One Fortune magazine article stated, "If [Cynthia] Cooper had been a good soldier, the whole incredible mess might have been concealed forever," in regards to her whistle blowing of WorldCom's fraudulent accounting. In simple words, had not Cynthia spoke up, the bad behavior would have continued and as a result, cause even MORE damage then the scandal did when it surfaced to the public. Certainly a terrifying thought!

Benefits of Whistle Blowing

Every organization desires honesty amongst their employees. Such an element allows for complete dedication to the organization's mission, and success. By encouraging a whistle blowing culture within the organization, the organization promotes, transparent structure and effective, clear communication. More importantly, whistle blowing can protect the organization's clients. For example, if a hospital includes number of negligent staff members, other more ethically inclined employees would need to bring such issues to the hospital's attention...protecting them from possible lawsuits, or severe mishaps resulting in a patient's demise.

Drawbacks of Whistle Blowing

As with everything, there are positives and negatives to everything. Whistle Blowing also comes with some negative aspects. For instance, in a 1972 case, an arbitrator told a whistle-blowing employee that they cannot, "Bite the hand that feeds you and insist on staying on the banquet." If the entire organization does not have the same positive attitude in regards to whistle blowing, employees may fear speaking up.

A second negative aspect of whistle blowing includes employees taking advantage of whistle blowing. Forbes.com included an example of Douglas Durand. As vice president of sales at TAP Pharmaceutical Products, Durand suspected the company was conspiring with doctors in overcharging Medicare. Instead of gathering evidence and blowing the whistle, Durand spent 7 months gathering information, quit, and then filed a lawsuit against TAP. Durand spent the next 8 years in cooperation with the government in order to build the case. Durand received $126 million in the settlement. Trouble surfaced after the settlement case when prosecutors filed criminal fraud charges against TAP executives. Durand's story fell apart as defense attorneys poked holes in his claims. Durand's example shows the ugly side of whistle blowing, the greed from an ill-intentioned whistle blower.

Although these two negative aspects of whistle blowing can be quiet unsettling, they both can be curbed. By promoting a whistle blowing culture within the organization, employees will feel comfortable speaking up when necessary. Here are some tips in promoting a whistle blowing culture:

§ Create a policy

§ Emphasize communications about bans on retaliation

§ Top Management must to demonstrate the inclusion in the culture

§ The organization's commitment must be emphasized and promoted

§ When a whistle has been blown, follow through with an investigation

§ Inquire the organization of their personal thoughts on viewpoints...make sure everyone is in the same line of thought on the topic.

Clear communication is key within building such an organization, making sure the organization goals are foremost allows employees to focus on the most important factor, the success of the organization and its members. (Encouraging Internal Whistle blowing in Organizations by Lilanthi Ravishankar)

In summation, whistle blowing is a necessary facet within an organization. Without it, fraud, misconduct, and failure become prominent within an organization. By promoting clear communication, keeping the organization's goals in focus for the entire organization, one can certainly minimize their chances of reaching an organizational disaster.

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Article Tags: arbitrator, bad behavior, bernie madoff, blo, cynthia cooper, demise, entire organization, fortune magazine article, fraudulent accounting, good soldier, lawsuits, mishaps, negative aspect, negative aspects, positive attitude, prime example, scandals, staff members, transparent structure, worldcom



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