WhistleBlowing – Origin, Meaning, Problems Involved in it.

What is Whistle Blowing?

Correcting a wrong action in any place, whether at work, or any other place, is a part of a person’s responsibility to society. Whistleblowers take such role, which is a major part of correcting the wrong practices performed at the work place. 

Whistle Blower

Simple Definition?

Whistle blowing is the “disclosure by organization members of illegal, immoral, or illegitimate practices under the control of their employers, to a person or organizations that may be able to effect action”

Origin of the word “Whistle Blowing”?

Where did the word Whistle Blowing come from? The term is derived from the act of a referee in a sport event where the referee blows the whistle to stop the action, usually on account of an illegal play.

Problems face by a Whistle blower/ Ethical Issues involved in WB?

Although the act of whistle blowing might be morally justified and there are whistleblower protection acts, whistleblowers often face retaliation from employers when they attempt to stop inappropriate, actions.

Should an employee report the wrong doing (whistle blow) keeping his/her career at stake?

Yes, it’s the employee’s duty to report to the concerned person regarding any illegal actions is being carried by any person(s) and should curb such actions. 

For example, it is a nurse’s moral duty to expose her boss (doctor) if she finds out that her boss is conducting unnecessary surgery to enrich himself.

Undoubtedly, the nurse might suffer harassment and even end her career because she whistleblowed. By whistle blowing, she might have saved the life of an individual who might have died from a complication involving an unnecessary surgery.

Repercussions involved in Whistle blowing with suitable examples.

Whistle blowing in Public Sector:

The Public Sector is more bureaucratically structured rather than the private sector. The public sector are all kinds of from federal to local government agencies.

A well-known whistleblower, quoted “if you have God, the law, the press and the facts on your side, you have a fifty-fifty chance of defeating the bureaucracy” - Hugh Kanfman.

One of the reasons why whistleblowers have difficulty finding a job is that they tend to have a special position which for the most part is not available in the same industry or other industries.

Case Study Example: Jim Boyd, who has twenty years of experience as an associate with Senator Thomas Dodd got fired after he blew the whistle on the Senator. Boyd exposed Senator Dodd for misusing over $200,000 of campaign money for personal expenses. Despite months of searching,

Boyd had difficulty finding a job for two reasons.

i)     No Senator wants to hire him after he exposed a well known Senator.

ii)   His position’s turnover rate in the political arena is very low, and thus it was very difficult finding an open spot.

Most of the times the employers put the whistleblower’s name on a blacklist and making them difficult in finding a new job in same field.  This will terrify the employees and force them not to expose any wrong doing and prevent themselves by not hitting the blacklist.

Whistle blowing in Private Sector;

In this sector usually either matrix or team structure is followed.  Although in the private sector changing careers will be easier than in the public sector, those individuals who blew the whistle still have difficulty finding re-employment.

Whistle Blowing

Case study Example: For instance, Ronald Brown, a stockbroker, complained of illegal conduct at Wheat First. Mr. Brown alleged that brokers in the firm excessively used clients’ accounts without their authorization (Nash, 1999). Mr. Brown was harassed, fired, and black-listed after he blew the whistle. Most security firms would not hire him after he blew the whistle at Wheat First because the information he revealed to the outside world harmed the company financially.

Another example involves a top executive, Mark Whitecre, who got fired from Archer Daniels  Midland Company (ADM) after he had made secret tapes for the FBI regarding the company’s price fixing (Kelley, 1996). The company not only fired and black-listed him, it accused him of embezzling nine million dollars.

Other Factors for a whistleblower not getting a Job:

·         Since a whistleblower is usually old, age is another important factor in prohibiting re-employment of a whistleblower.

·         Employers are reluctant to hire whistleblowers is because their action is seen as a breach of loyalty.

·         Some of the whistleblowers who are fired sue their past employer for unfair termination. Instead of looking for a job, they await a legal resolution hoping to regain their previous job.

Possible solutions from the Employers for the Whistle Blowing Issues:

The Whistle Blowing Policy has to be build in such a way that apart for strengthening the whistleblower laws are

·         Employees should be encouraged to communicate their ethical concerns internally.

·         Employees need to believe that their concerns will be taken seriously.

·         Employees need to feel that they will not suffer any retaliation for their action.

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Code of Conduct - Tata Steel

The Asia First and India’s largest private sector steel company “Tata Steel” was the first company to formulate the policy called “Code of Conduct” in 1998.  The document contains the values, ethics, and business principles which the employee has to follow, which was even later extended to the stakeholders like suppliers and dealers of the company.  A position called Ethics counselor at Top level management was created, who was responsible for creating awareness among the employees, stakeholders and even among the families of the employees.  To motivate, coordinator were rewarded on the basis of quality of work and which high moral value behavior is presented on monthly basis. This was a Proactive step taken by the Tata Group.

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Steps to Avoid Unethical Decision Making?

Steps to avoid Unethical Decision Making?

·      A study says that persons with high Self-efficacy tend to more open towards Ethical choices. They need to be more encouraged.

·      As there is a chance of taking unethical decision because of lack of awareness, the organization should provide more moral awareness, through introducing Code of Ethics, conducting Seminars, conferences, and implementing Socialization by which leads to better implementation of ethical practices.

·      For avoidance of Violation of Code of Ethics,  different mechanisms should be implemented at different levels, where one has to report to the Ethic supervisor, where the information should be passed till the Top management. A proper structure, ethical policies, practices and Ethical behavior which are ought to be followed should be properly communicated and implemented.

·      Post-conventional or Principled people falls under one of the Cognitive factors, who can take ethical in decisions and behavior and can take decisions independently and acts as an Whistle blowers at any wrong or unethical things happening should be encouraged. Whistle blowing which is a moral behavior and directly related with Locus of control should be boosted up.

·      Appropriate staffing and value based selection should be done while recruiting and selection process, as the values of individual and organizational doesn’t coincide. More on, achievements or ambitious orientation plays an important variable in Ethical Decision making, as per the Bounded Ethical Model, Ambitious oriented Individuals are more focused on their goals and neglect ethical aspects while decision making, so there is a need for proper Selection of workforce.

·      There is a need of Ethical Orientation among the people who owns, manage, and work for it in carrying the business organization with Ethical Practices.  The owners and leaders of the organization should be concentrating on Organizational value more than High Profit or result oriented.  Influencing Peers into Ethical decision making found effective.


WHAT IS ETHICS AND FACTORS LEADING TO UNETHICAL DECISION MAKING

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Ethics and Factors leading to Unethical Decision Making

What is Ethics?
A set of 
standards derived from Social Values, to choose what is good and evil, Right or wrong,  ought to do and not to do is Ethical Standards.  These are the set of values in accordance to the Social norms which helps to survive in the community.  The Behavior values which are considered important presently for the existence, acts as a standard for the future ethical organization decision making.

There has been an increasing Unethical practices gained importance for being into Fair practices, things came into limelight after the Unethical practices like Financial Frauds by companies like Enron and Arthur Anderson carried on, by which there has been an Increasing pressure on the organization from the Government body and has more concerned on social responsibility and in unethical practices.

An ethical decision making should be in such a way that it should be legally and morally, acceptable by Employees and the Shareholders. May be an ethical decision doesn’t always directs to Ethical behavior, whereas an Ethical Behavior always comes before an Ethical decision making.

Factors leading to Unethical Decision Making:

·      One of the reason why there is been an increasing unfair practices are because of Competition Driven Performance Management, where the possibilities of Violation of rules are higher.

·      Since the objective of any organization is Profit maximization, the concentration of the mangers tends to be more on short term goals rather than long term, which thrust them for taking unethical norms just to meet the performance targets.

·      Intrinsic Factors, like lack of Moral Awareness about the nature of decision, can make the decision go wrong and other Individual Factor values can also arises problem in making decision as perorganization Ethical standards which influences greatly where the intensity depends on how strong one is at, at their own values.

·      Even after the implementation of Ethics policy it has been observed that, the subordinates follow what their supervisors likes rather than, what the policy says.   So, if the manager is unethical, the subordinates follow the manager in such unfair practices.

·      Problems in Ethical decision making may occur not only when the intentions are evil, but also when there is a conflict between Individual Interest and social norm.

STEPS TO AVOID UNETHICAL DECISION MAKING?

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