Whistleblowers

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Whistleblower

Our lives begin to end the day we
become silent about things that matter.
- Martin Luther King, Jr.

Who is a Whistleblower?
• A whistleblower is a person who exposes
any kind of information or activity that is
deemed illegal, dishonest, or not correct
within an organization, that is either private or
public.
• The information of this 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.

Types of Whistleblowing
• Internal Whistleblowing – is made to
someone within the organization.
• Personal Whistleblowing – is blowing the
whistle on the offender. (Here the charge is
not against the organization, but against one
individual)
• External Whistleblowing – is a person who
reports an organization's illegal, immoral,
illegitimate works to someone outside the
organization. 

Time Magazine – Cover

WORLDCOM – Cynthia
Cooper

ENRON – Sherron Watkins

FBI – Coleen Rowley
• In January 1981, Rowley became a Special Agent with
the
FBI
and
was
assigned
to
the Omaha,
Nebraska and Jackson, Mississippi divisions. Beginning
in 1984, she spent six years working in the New
York field
office
on
investigations
involving
Italian organized crime and Sicilian heroin. During this
time she served three temporary assignments in the
U.S. embassy in Paris and the consulate in Montreal.
• In
1990,
she
was
transferred
to
the
FBI's Minneapolis field office, where she became Chief
Division Counsel. There she taught constitutional law to
FBI agents and police officers.

FBI – Coleen Rowley
• After the September 11, 2001 attacks, Rowley wrote a
paper for FBI Director Robert Mueller documenting how
FBI HQ personnel in Washington, D.C., had mishandled
and failed to take action on information provided by
the Minneapolis, Minnesota Field Office regarding its
investigation of suspected terrorist Zacarias Moussaoui.
• Moussaoui had been suspected of being involved in
preparations for a suicide-hijacking similar to the
December 1994 "Eiffel Tower" hijacking of Air France
8969. Failures identified by Rowley may have left the
U.S. vulnerable to the September 11, 2001, attacks.

FBI – Coleen Rowley
• In May 2002 Rowley testified to the Senate and
the 9/11 Commission about the FBI's pre-9/11
lapses due to its internal organization and
mishandling of information related to the attacks.
• Rowley jointly held the TIME "Person of the Year"
award in 2002 with two other women credited as
whistleblowers:
Sherron
Watkins from Enron and Cynthia
Cooper of
WorldCom.

SATYAM - E Sreedharan

LEHMAN BROTHERS – Matthew Lee

7 Deadly Sins
• Wrath
The sin: Losing your temper and lashing out in anger at
a colleague/junior/boss/the wall. 

• Greed
The sin: Taking what you shouldn’t.

• Sloth
The sin: Probably the most self explanatory sin when it
comes to not just professional life, but anything and
everything. Sloth — the avoidance of physical work or a
sluggishness of soul — is just plain old fashioned
laziness.

7 Deadly Sins
• Pride
The sin: Labelled as the sin from which all others
arise, pride, or vanity, is the excessive belief in
one’s own abilities and it interferes with, well
pretty much everything. Now we’re not talking
about taking pride in what you do; in this instance
read ‘pride’ as being vain and/or arrogant.
• Lust
The sin: Desperately lusting after a co-worker. An
inordinate craving for a colleague, boss or
employee.

7 Deadly Sins
• Envy
The sin: The green eyed monster. Allowing yourself
to be overly envious of others in the workplace. This
can sabotage your self-esteem, which is one vital
characteristic every successful business person
shares.
• Gluttony
The sin: Many individuals move up the corporate
ladder so fast that they actually end up failing as a
consequence. More isn’t always better — especially
if you’re not ready for the challenge at hand.

Which of the 7 sins?
• ENRON - PRIDE
Jeffery Skilling once said, "I've never not been
successful at business or work...ever!“

• WORLDCOMM – ?
Ebbers was portrayed as one lousy leader,
distrusting of employees and micromanaging
ridiculous details.

Which of the 7 sins?
• FBI - ?
In spite of informing, the FBI personnel ignored
and did not take any action.

• SATYAM - ?

• LEHMAN BROTHERS - ?

Ranbaxy Case
• On May 13, the US Department of Justice and
Ranbaxy Laboratories announced that the
company had pleaded guilty and agreed to pay
$500 million to resolve false claims allegations,
manufacturing violations and false statements
to the Food and Drug Administration (FDA) in the
US. The case reached this conclusion thanks to
the whistleblower policy of the United States.
Dinesh S. Thakur, who between 2003 and 2005
was the director and global head, research
information and portfolio management at
Ranbaxy, was the whistleblower. 

Ranbaxy Case
• On May 13, 2013 Ranbaxy were found guilty on
seven
federal
charges
regarding
selling
adulterated generic drugs, fabricating data, and
committing fraud.
• Whistleblower Dinesh Thakur said that “the
company culture was for management to dictate
the results it wanted and for those beneath to
bend the process to achieve it.”
• He also described how Ranbaxy took its greatest
liberties in markets where regulation was weakest
and the risk of discovery was lowest.

Why Good Managers make Bad
Ethical Choices
(1) A belief that the action is not really unethical or
immoral (“everyone does it”)
(2) A belief that the action is in the best interests of the
company (growth, profits, maximizing shareholder
value, and so on)
(3) A belief that the action is unlikely to be detected and
(4) A belief that because the action helps the company,
the organization will condone and even defend such
action

NDMC Case

• http://economictimes.indiatimes.com/news
politics-and-nation/whistleblower-brijeshnarayan-singh-resigns-from-ndmc-movesback-to-homestate/articleshow/49512152.cms

Suraj Parmar Case
• 45-year-old Suraj Parmar, head of the Cosmos
Group and The Maharashtra Chamber of Housing
Industry (Thane) president, ended his life inside a
sample flat at one of his ongoing projects in Thane.
• Parmar shot himself in the head with his personal
firearm on 6th Oct, 2015, in the afternoon.
• In the 15-page suicide note that he left behind,
Parmar blamed mounting financial losses and red
tape as primary reasons for taking the drastic step.

Suraj Parmar Case
• The Thane police has registered a case under
prevention of corruption against unknown
persons in builder Suraj Parmar’s suicide case. In
the suicide note that the police has discovered,
Parmar wrote that he had paid crores of rupees as
bribes. Considering this, the Thane police will add
Prevention to Corruption Act charges in the FIR.
The money was paid to local corporators and
municipal officers, the letter stated.
• “I have wasted crores of rupees just to give
bribe,” said Suraj Parmar in his suicide note. In
the letter dated October 6, Parmar wrote how he
had grown in the past 10 years and how the

Paul Moore – HBOS
Whistleblower
• Paul Russell Moore (born October 1958) is best known as
the HBOS whistleblower following his dismissal from Halifax
Bank of Scotland in 2004. Moore was the bank’s Head of
Group Regulatory Risk and was fired from the role by HBOS
Group Chief Executive Office James Crosby following his
warnings to the Board about HBOS’s risky sales strategies.
• It was during 2004 whilst conducting reviews of the bank’s
sales culture and selling practices that Moore and his team
uncovered mis-selling and other unfair customer sales
tactics. However, when Moore reported these findings, as
his job demanded, he was fired on 8 November 2005.

Paul Moore – HBOS
Whistleblower
• Moore's complaints were investigated at the time
(before the crisis) by accountancy firm KPMG, who
concluded that HBOS had appropriate risk controls in
place; this was accepted by the Financial Services
Authority.
• He sued HBOS for unfair dismissal on the basis that
the reason for his dismissal was actually his warnings
of excessive risk, which if followed would have reduced
the bank's profits while protecting it from what proved
to be the all-too-real risk. The bank settled his claim
for over half a million pounds in mid-2005.

Whistleblowers Protection
• Whistle Blowers Protection Act, 2011 is an Act of the
Parliament of India which provides a mechanism to
investigate alleged corruption and misuse of power by
public servants and also protect anyone who exposes
alleged wrongdoing in government bodies, projects
and offices. The wrongdoing might take the form of
fraud, corruption or mismanagement. The Act will also
ensure punishment for false or frivolous complaints.
• The Act was approved by the Cabinet of India as part
of a drive to eliminate corruption in the country's
bureaucracy.

Whistleblower Dilemma
• Ethical dilemma is a choice between two options,
both of which will bring a negative result based on
society and personal guidelines.
• Whistleblowers face conflicting ethics.  An
employee who witnesses wrong doing on the part
of their employer must weigh decisions carefully. 
• On one hand the infractions of their employer have
negative impacts on the public interest. On the
other hand the employee,  constrained by
confidentiality policies, face disciplinary action and
retaliation from their employer if they expose the
wrong doing.

Positives & Negatives
Positives -

Negatives 1. Improper Behavior
Exposed
2. Legal Protection
3.  You’ll empower
other
honest people.

1. Career Damage
2. Personal Problems

Godrej Annexure
• http://www.godrejandboyce.com/godr
ejandboyce/pdf/Whistleblower.pdf

Thank You

Presented By
Karishma Hatkar PG14-17
Purva Jog PG-14-20

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