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Whistle Blowing

Published on July 2016 | Categories: Types, Business/Law | Downloads: 21 | Comments: 0



MBF(2012-14) 41120600605

What is Whistle Blowing ?
Whistle Blowing refers to reporting of companies wrong doings by its employees. And the reporters (employee/s) of wrong doing are known as whistle blowers.


In 1986, US adopted whistle blower law to encourage individuals to report the wrong doings in the companies. The whistle blowers, under the law, are paid as much as 30% of the fines.


This law deter companies in wrong doings or illegal activities. The whistle blower gets as much as 30% of the legal fines reaped in lawsuits.


Rather than rectifying the wrong doings internally, whistle blowers report such doings in the edacity of payoffs. Whistle blowers can be as unethical as wrong doers, if this right is abused. Whistle blowers face unemployment.

Analysis and Conclusion

Until the whistle blowers behaves in an ethical manner, it is beneficial to both the company and the public at large. Government must define the penalties in case of frivolous lawsuits so as to minimize such suits.

Ans. 1- Yes it is good for organizations as well as for public as it leads to fair trading but when followed by edacity for money, it proves to be devastating for the organization. Ans. 2- The self fulfilling prophecy changes the whole view of reporting the wrong doings. A whistle blower uses various wrong tricks to accumulate evidences.

Ans. 3- Frivolous lawsuits affects the lawsuits filed or to be filed even with valid claims as frivolous lawsuits affects the company adversely. Future whistle blowers will be cautious in filing any suit and will consider all the aftereffects of it. This may reduce the number of lawsuits against the companies. A committee must be formed to evaluate the claim and further investigate the case, after which the case may be dealt in public. Government and companies must penalize the blowers of frivolous lawsuits and must appoint a committee take care of such cases.

Ans. 4- Firstly, an employee must discover the whole story and act thereupon. If members of company are themselves involved in the wrong doing then blower must approach to government authorities directly and if any superior is involved then it must be first informed to the members of company that will resolve it internally without disclosing it to the public.

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