Is Whistleblowing Ethical?

When it comes to corporate misconduct, whistleblowers are regularly rewarded with headline-grabbing payouts. For example, the recent $3 billion qui tam settlement with GlaxoSmithKline means the whistleblower stands to make hundreds of millions of dollars from a relator’s share. But many private-sector employers are wary of such big rewards because they fear that they may entice employees to go to the government instead of reporting wrongdoing. A high-profile whistleblower could cost the company billions of dollars in lawsuits.

Ethics of whistleblowing

As an employee, you might be tempted to speak up about a blatant violation of your employer’s rules and policies. However, you might be hesitant because of a dilemma surrounding the ethics of whistleblowing. While you want to protect your employer and the interests of your family, the morals of the situation trump your loyalty to the company. You might also be concerned about the impact of speaking up on the company’s finances or your job security. Fortunately, whistleblowing can be done without compromising your morals.

The Deontic view views whistleblowing as a fundamental organizational duty. To discharge this duty, organizations must establish secure internal and external reporting mechanisms that protect whistleblowers. A dedicated authority may also be set up to provide legal advice to whistleblower initiatives. These are just a few of the many complexities that surround the ethics of whistleblowing. To help you choose the right course, consider the following:

When does it become appropriate to disclose information? When secrecy threatens the political legitimacy of an organization, whistleblowing may be an appropriate response. In addition, it may be necessary to disclose information to remedy a significant informational deficit. For example, the Pentagon Papers exposed U.S. war crimes committed during the Vietnam War. Likewise, Chelsea Manning’s leaks exposed a graphic video of a U.S. Apache helicopter airstrike on unarmed civilians in Baghdad.

Protection of whistleblowers from retaliation

Retaliation is a form of employee reprisal that can range from firing an employee to stripping them of their responsibilities. It can also take the form of harassment from co-workers, including physical attacks. It is unethical to allow employees to circumvent the proper channels to report misconduct, because such actions can hurt the organization’s reputation. Worse, whistleblowers may be forced to sue their employers.

Companies must have a code of ethics in place that prohibits retaliation. This code should serve as the cornerstone of an ethics culture at the company. Employees must be trained on the company’s ethics code. Knowledgeable employees are more likely to make sound decisions. A company must also develop a policy on how to handle adverse employment actions, such as warnings or suspensions, which may be construed as retaliation. It should involve human resources and require supporting documentation.

In order to qualify as a whistleblower, you must report the misconduct to the Ethics Office. You must report it in good faith within six years of the occurrence. If you are unable to make a report within this timeframe, you can appeal to the Inspector General. An Inspector General can convene a review panel of three inspectors general. This panel has limited authority to make recommendations to the head of the original agency.

Costs of whistleblowing

The costs of whistleblowing are high, especially when it is about leaving a job and facing reprisal. The time required for such disclosures takes away from the individual’s social life, and the stress can sap one’s strength to continue fighting for the cause. The lack of legal protections for whistleblowers has also made them vulnerable to these financial burdens, and there are gaps in their security, too. The impact on society is further exacerbated by unemployment, which makes it much harder for individuals to support themselves.

While many individuals do not consider the financial costs of whistleblowing a significant factor in their decision to become a whistleblower, these expenses are significant. Not only can they result in court cases and fines from regulators, but whistleblowers have also suffered personal damage and lowered morale. The negative practices they expose could have become even more detrimental if they had been ignored. However, whistleblowing does contribute to corporate cultures and helps them deal with internal and external situations in a more effective and positive way.

However, the financial and emotional tolls of becoming a whistleblower are often less than the benefits of gaining public sympathy for your cause. Whistleblower reward programs may be a great way to make an impact, but they cannot cover every conceivable ill. For example, a tailor in New York City pleaded guilty to a decade-long scheme to avoid state sales taxes. In exchange for the guilty plea, he agreed to pay $5.5 million in back taxes. Likewise, a dermatologist in Florida settled with the state of Florida over illegal kickbacks. The pathologist who brought these allegations is slated to receive $4 million of the settlement.

from lawyers.buzz https://lawyers.buzz/is-whistleblowing-ethical/
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