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Whistle Blowing

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Figuur 1

Figuur 1

Maak die Wet op Beskermening van Bekendmaking werklik verskil in bekamping teen onreëlmatighede in ’n onderneming

Deur: Lourens Els
Studente no: 20034423
Vak: Besigheidsreg en Etiek
Dosent: P Greyling

A country should be defended not by arms, but by ethical behavior

Bestuursopsomming.
Die drastiese verhoog van interne onreëlmatige en onwettige bedrywe in ondernemings het drasties verhoog oor die dekades. Korporatiewe skandale wat begin om alhou meer koop uit te steek. Maatskappye soos byvoorbeeld, Fidentia, Samba, Leisure Net, Kriol en 'n meer onlangse geval Sharemax. En in die internasionale front het Enron, WorldCom en Tyco vir korporatief skandale gesorg. Die korporatiewe het groteliks deel uitgemaak van mense se allerdaagse lewens. Die vraag is, kon die val van die korporatiewe reuse gekeer geword het as meer mense hulle stem dik gemaak het en die inligting bekend gemaak het.
Deel een van die studie bespreek die Wet op Beskerming van Bekenmaking, Wet 26 van 2000. Die Wet word op verskeie vlakke bespreeks soos: * Die Wet op Beskermde van Bekendmakings, 2000 (Wet 26 van 2000) – Definieer. * Wie kwalifiseer vir beskerm deur die Wet? * Wat is die vereiste om deur die Wet te beskerm word. * Watse prosedures moet die persoon volg volgs die Wet. Deel 2 van die studie word daarna gekyk, hoekom is werknemers ongewillig om navore te kom en inligting openbaar te maak oor onreëlmatige bedrywe binne die organisasie? Daar word na 2 voorbeelde verwys van persone wat wel die fluitjie geblaas het op onreëlmatige bedrywe. Daar word ook gekyk wat met die 2 persone gebeur het na die aksies. Die laaste deel in deel 2 handel oor wat n persoon sal verander aan die Wet om werknemers meer te beskerm. Daar word ook gekyk na eksterne meganisme wat die bekendmaking vergemaklik en werknemers meer motiveer om inligting beken te maak. Deel 3 van studie word die Vertroulikheid Rappoterings Beleid van Anglogold Ashanti krities behandel en vergelykings word met die Wet van Beskerming op Bekendmaking gemaak. Daar word ook bespreek of die beleid wel openbaarmaking van werknemers aan moedig. ( Sien asb Bylaag 1) Die leser moet asb daarop let dat die opdrag net 'n opsomming van die Wet op Beskerming van Bekendmaking en van die Vertroulikheids Rapportering Beleid van Anglogold Ashanti is en mag nie gebruik word vir regsadvies nie.

Inhoudsopgawe Bladsy 1. Inleiding 5

1.1. Die wet op Beskermde van Bekendmakings, 2000 (Wet 26 van 2000) 5 1.2. Wie kwalifiseer vir beskerm deur die Wet? 5 1.3. Wat is die vereiste om deur die Wet te beskerm word. 5 1.4. Die prosedures wat 'n persoon moet volg volgs die wet. 6 * ’n Regsteenwoordiger. 6 * Werkgewer of ander geskikte persoon. 6 * Minister of ’n lid van ’n die Uitvoerende Raad van ’n provinsie. 6 * Publieke Beskermer of Ouditeur-Generaal. 6 * Die algemene persoon. 7

1. Bespreking van die onwilligheid van werks om na vore te kom en inligting te openbaar. 7

2.5. Gevalle Studies. 7 * Jimmy Mohlala. 7 * Vicky Engelbrecht. 8 2.6. Aanbevelings. 8

2. Die "Whistle-blower" beleid van Anglogold Ashanti. 9

3.7. Inleiding. 9 3.8. Kritiese bespreek van Anglogold Ashanti. (AGA) 9 3.9. Gevolgtrekking. 10

3. Konklusie. 10

4. Bibliografie. 11

Lys van Bylae.
Bylaag 1 – Wet op Beskerming van Bekendmaking.
Bylaag 2 – Vertroulikheids rapportering van Anglogold Ashanti.

Lys van Figure.
Figuur 1 – Uit persoonlike versameling
Figuur 2 – Vanaf Microsoft Clip Art verkry

Lys van Akronieme
WBB – Wet op Beskermde van Bekendmaking.
RSA – Republiek van Suid-Afrika.
AGA – Anglogold Ashanti.
Informant – Whistle-blower.

Figuur 2

1. Inleiding.
Die dryf van onreëlmatige en onwettig aksies is alledaagse kwessie wat voortkom in die RSA. Korporatiewe skandale is iets wat al hoe meer sy kop uitsteek soos bv. Saambou, LeisureNet, Fidentia en onlangse skandaal Sharemax. Daar was wel ook gevalle op die internasionale fronte soos Enron en WorldCom. Die skandale het duisende mense se lewens geskud. Persone het werke, pensioenfondse, behuisings en groot beleggings verloor a.g.v. die skandale. Die vraag nou is kon die skandale voorkom geword het as daar ’n standvastige "Whistle Blower" beleid in plek was.
Dit was vir die regering en onderneming ’n uitdaging om ’n beleid of ’n Wet in plek te kry om werknemers en ondernemings te beskerm teen onreëlmatige bedrywe. Die regering het ’n stap in die regte rigting gemaak met die opstel van die Wet op Beskermde van Bekendmakings. 2.1. Die wet op Beskermde van Bekendmakings, 2000 (Wet 26 van 2000).
Die Wet op Beskermde Bekendmakings is op 16 Februarie 2001 inwerkstelling. Volgens die WBB (2000:6) is die objektief van die Wet om die werknemers in die privaat, maar so ook in die publieke sektor te beskerm teen viktimisering en beroepsbenadeling omdat die werknemer ’n beskermde bekendmaking gemaak het.
Dit is noodsaaklik dat die kollig op sekere aspekte van die Wet geplaas word. Daardeur sal ’n persoon die Wet beter verstaan en die effektiwiteit van die Wet begryp. 2.2. Wie kwalifiseer vir beskerm deur die Wet?
Volgens die WBB (2000:4) word enige werknemer beskerm deur die Wet wat ’n beskermde bekendmaking gemaak het. Die Wet stel dit ook uitdruklik dat onafhanklike kontrakteurs nie beskerm word deur die Wet nie. Die WBB (2000:4) sien ’n werknemer as 'n persoon wat werk vir 'n werkgewer of 'n persoon wat op enige wyse te help in die beoefening van die werkgewer se besigheid, inruil vir vergoeding. 'n Werkgewer word gedefinieer as die persoon wat die werknemer in diens neem of laat die werknemer toe om hom by te staan in die uitvoer van sy besigheid, in ruil vir betaling. 2.3. Wat is die vereiste om deur die Wet te beskerm word.
'n Bekenmaking is beskermde as dit volgens die Wet aan die korrekte persone of liggame gemaak is. Volgens die WBB (2000:4) word n bekenmaking gedefineer as enige bekenmaking van inligting raken enige optrede van n werkgewer of 'n werknemer van daardie werkgewer wat gedoen word, deur enige werknemer wat rede het om te glo dat n misdaad gepleeg is, of waarskynlik gepleeg gaan word, besig om n wettig obligasie te versuim, onreg aan die regpleging gedoen word, bedreiging van iemand se gesondheid en veiligheid of die natuur, onreëlmatige diskriminasie of die verberging van enige van die bogenoede stellings.
Soos in die eerste reel van die paragraaf genoem is moet n persoon toe sien dat hy die korrekte kanale volg om die korrekte persone of entiteit bereik om sy inligting bekend te maak. Daardeur word sy bekendmaking beskerm en kan hy op die middele van Wet staatmaak. 2.4. Die prosedures wat 'n persoon moet volg volgs die wet.
As ’n werknemer besluit om onreëlmatige of onwettig bedrywe se inligting openbaar te maak is daar roetes om te volg. Daar is 5 verskillende roetes om te volg nl. * ’n Regsteenwoordiger: * Alle openbaarmakings is ’n beskermde openbaarmaking. * Alle openbaarmakings moet aan ’n regsteenwoordiger gemaak word of persoon wat se beroep is om wet advies te gee aan persone. * Die openbaarmaking moet gedoen word tydens die verkryging van regsadvies * Werkgewer of ander geskikte persoon: * Alle openbaarmakings moet gemaak word in goeie vertroue. * Die regte prosedures moet gebruik word volgens die beleid om inligting openbaar te maak aan die regte persoon * As daar nie ’n beleid in plek is nie moet die openbaarmaking van inligting aan die bestuurder gemaak word. * Minister of ’n lid van ’n die Uitvoerende Raad van ’n provinsie: * Alle bekendmaking moet gemaak word in goeie vertroue. * Die informante: * Moet aangestel wees deur ’n lid van die Kabinet.of Uitvoerende Komitee * Moet ’n lid wees van ’n Liggaam wat ook aangestel is deur ’n lid van parlement of Uitvoerende Komitee. * Publieke Beskermer of Ouditeur-Generaal: * Alle openbaarmakings moet met goeie vertroue gemaak word en die werknemer moet glo dat * Die beweerde openbaarmaking wat aangevoer is onder die persoon se juristies val waaraan geopenbaar is. * Die inligting en gedrag moet aansienlik waar wees. * Die algemene persoon: * Die openbaarmaking moet op goeie vertrou gedoen word met geen intensies vir persoonlik wins nie, uitsluitlik vergoeding deur die onderneming aan die werknemer. * Die informant moet glo dat die inligting is aansienlik waar.

2. Bespreking van die onwilligheid van werknemer om na vore te kom en inligting te openbaar.
Die werknemers sien onreëlmatige en onwettige bedrywe gewoonlik eerste, maar inmenige gevalle word die bedrywe nie bekende gemaak deur die werknemer nie. In so gevalle is die werknemer bang hy verloor hoofsaaklik meer uit die situasie as die beskuldige of werkgewer. Dus vind die werknemer homself in drie verskillende dilemmas sodra onreëlmatige en onwettige bedrywe geidentifiseer. Die werknemer kan stil bly en maak of hy nie die onwettige bedryf gesien het nie, die werknemer kan die onwettige bedryf openbaarmaak aan sy werkgewer of hy kan sy kommer buite die onderneming neem.
In die eerste geval bly die werknemer stil, omrede werknemer bang is dat ’n bordjie word om sy nek gehang wat hom as ’n verraaier klassifiseer en ’n teiken op sy rug plaas vir sy mede-werkers en werkgewer. Dit is dan makliker vir die informant om stil te bly, omrede die informant glo dat hy: * finansieel afhanklik is aan die werkgewer en sy werk, * moet die organisasie kultuur eerste stel en respekteer teenoor sy eie kultuur, * dat die openbaarmaking nie die voldoende sal aanspreek nie, * die werkgewer se bedrywe konfidensieel moet hou.
Die media vergemaklik ook nie die besluit vir ’n werknemer nie, omrede baie artikels se hooffokus is op werknemers wat inligting openbaar gemaak het en na ’n tydperk nie meer ’n werk of ’n loopbaan gehad het nie. 3.5. Gevalle Studies.
Soos die 2 gevalle studies sal wys van persone wat informante was oor onreëlmatige en onwettige bedrywe * Jimmy Mohlala.
Volgens die internet artikel van Archer (2009) was Jimmy Mohlala deel van die Mbombela plaaslike munisipaliteit en vorige uitvoerder van die Suid Afrikaanse Voetbal Assosiasie. Met die bou van die 2010 Wêreldbeker stadion in Nelspruit het Jimmy Mohlala onreëlmatige en onwettig bedrywe begin raak sien. Een onreëlmatige bedryf wat hy raak gesien het was die betaling van die gronde waarop die die stadion gebou is.
’n Stuk grond is verkies deur die raad waarop die stadion gebou moet word in Nelspruit. Die grond was gekoop by 'n trust wat die grond "besit" het. Jimmy Mohlala het begin ondersoek instel en gevind dat die administrateur van die trust het die 6000 hektaar grond (wat nie wettig die trust sinne was nie) waarop die stadion gebou gaan word vir 1 rand verkoop aan die raad.
Jimmy Mohlala het op ’n later stadium uitgevind dat die administrateur ’n besigheid vennoot is van die plaaslike munisipale Burgemeester Jacob Dladla en ’n plaaslike Politikus. Jimmy Mohlala het gewerk om nog meer onreëlmatige en onwettig bedryf openbaar te maak.
Op 4 Januarie 2009 het 3 mens met maskeer die huis van Jimmy Mohlala betree en hom koelbloedige vermoor. Die plaaslik polisie het ’n verklaring uitgereik wat sê, "daar is geen klaarblyklike motiewe vir die moord nie". ’n Man wat in die waardheid geglo het moes met sy lewe betaal het sodat die inligting openbaar gemaak word. * Vicky Engelbrecht.
Volgens (Binikos 2007:26) was Vicky Engelbrecht werksaam by Kwamhola Sekondere skool. Sy het inligting openbaar gemaak dat daar ongeruimhede is met eksamen vraestel by die Mpumalanga se departement van onderwys. Vicky Engelbrecht het na die aantuigings nie weer terug gekeur na haar pos toe nie. Sy is toe op ’n later stadium afgedank omrede sy haar siek verlof uitgeput het. Vicky Engelbrecht was na haar aantuigings gedreig met die dood en haar salaris was opgeskort deur die Departement. Vicky Engelnrecht was weer in Junie 2005 heraangestel deur die departement, omrede die saak publisiteit begin kry, het en die Departement in ’n swak lig geplaas het. 3.6. Aanbevelings.
Na aanleiding van die bogenoemdes ontledings en bevindings sal daar seker aanbevelings gemaak word interm vandie Wet en ’n meganisme:
Die wet: I. Daar sal ’n voorsien gemaak moet word vir vergoeding of 'n beloning vir die informant in die Wet, omrede die werknemer sy toekoms op die spel plaas om inligting openbaar te maak. II. Die Wet moet alle persone (Pensionaris, aandeelhouers en kontrakteurs) beskerm sodat hulle ook onreëlmatige bedrywe kan openbaarmaak aan die geskikte persoon of persone. III. Die las om bewyse te voorsien moet deur die onderneming en die beskuldigde gedra word en nie deur die informant nie. IV. Die onderneming moet verantwoordelik wees vir alle onkoste (bv. regskoste, salarisse en reiskoste) wat aangegaan is deur die informant as die bekendmakend inligting waar is en die informant word negatief beinvloed.
Ontwikkel van ’n eksterne meganisme: I. Daar moet ’n eksterne meganisme ontwikkel word, wat ’n informant kan nader om inligting deur te gee van onreëlmatige bedrywe. II. Die werknemer wat die inligting openbaarmaak se identiteit moet anoniem gehou word. III. Die meganisme moet as ’n middelman dien tussen die werknemer en die organisasie. IV. Die onderneming mag geen kontak met die werknemer hê nie. V. Die meganisme moet dadelik intree en ouditeure aanstel om saam met die onderneming se interne ouditeurs die saak te ondersoek. VI. As die onderneming die werknemer wil kontak moet die meganisme die spreekbuis wees vir die werknemer om so sy anonieme identiteit te behou.

3. Die "Whistle-blower" beleid van Anglogold Ashanti. 4.7. Inleiding.
Die WBB is inwerking gestel om werknemers te beskerm wat inligting openbaarmaak van onreëlmatige en onwettig bedrywe. Daar is wel paar probleem areas in die Wet. Na die inwerkstelling van die Wet, het ondernemings ook begin beleide opstel om werknemers nog meer te beskerm teen openbaarmaking van inligting. Die maatskappye gebruike die WBB as ’n riglyn vir die beleid en spreek ook die probleem areas aan om optimale beskerm te bied vir die ondernemings se werkernemers. U sal sien in die onderstaande beleid het AGA die probleem areas van die Wet aangespreek en verbeter. 4.8. Kritiese bespreek van Anglogold Ashanti. (AGA)
Die beleid van AGA is volgens die terme van die Korporatiewe bestuur se riglyne en vereistes opgestel. Die raad het wel ook die "King Verslag op Korporatiewe Bestuur van RSA 2002", " The Sarbanes-Oxley Act 2002 van die Verenigde State van Amerika en "Die Wet op Beskermde Bekendmakings, 2000 (Wet 26 van 2000)" in ag neem met die opstel van die beleid vir Anglogold Ashanti.
In meninge gevalle beweeg ’n maatskappy weg van die WBB om meer beskerming te bied aan sy werknemers soos in die geval met die beleid van AGA.
Die beleid: * maak voorsien vir beskerming vir ’n wyer area van persone as die WBB. * stel dat enige party wat belangstelling het, mag ’n onreëlmatighede openbaarmaak maak al is hy ’n aandeelhouer of ’n lid van die publiek. * voorsien dat die informant nie die bewyslas het om aansienlik waarheid te bewys nie. * beskerm die informant al, was hy verkeerd met die ware aard van die saak.
Die beleid spreek seker tekort komme deur die Wet drasties aan soos wat bovermeld is. Dis bevorder die beleid die rapportering van onreëlmatighede in ’n organisasie. Die beleid het ook ander maatreëls aangebring om rapportering te bevorder wat nie deur die Wet voor sien word nie: * Alle openbaring word gedoen deur ’n eksterne meganisme nl. Tip-offs Anonymous. Die meganisme is onafhanklik van die bestuur en is deur middel van ’n tolvrye blitslyn. * Alle gesprekke, brief, fakse, E-pos of persoonlike kontakte sal anoniem gehou word deur die meganisme. * Die beleid vergroot die onbehoorlikheid gebeure van die groep. Die onbehoorlikheid gebeure is vergroot om die volgende in te sluit: Die verbreek van die groep se missie, visie, waarde, etiese kodes en interne beheer. 4.9. Gevolgtrekking.
Na aanleiding van die kritiese bespreking van AGA Beperk se Vertroulikheid Rapportering Beleid, kan die volgende gevolgtrekkings gemaak word:
AGA ’n geleentheid gesien tydens die opstel van die groep se beleid en het die tekort komme van die Wet verbeter sodat dit meer in die groep se strukture pas en informante nog meer beskerm. Daar kan wel nog verbeterings aan die beleid gemaak word deur vergoeding aan persone te gee wat onreëlmatighede rapporteer en die informant bystaan met regshulp of die dekking van informant se regskoste.

4. Konklusie.
Die WBB het ’n paar haak plekke soos in die studie uitgelig is, maar met die intrede van die WBB is dit ’n stap in die regte rigting vir teenkamping van onwettig en onreëlmatige bedrywe. Goeie beleid is sterk vereiste vir ’n maatskappy om nie net sy werknemers te beskerm nie maar so ook die onderneming. Die beleid van elke onderneming moet die WBB as ’n riglyn gebruik, maar moet die tekort komme van die WBB aanspreek en verbetering volgs die maatskappy se behoeftes aanbring. Daardeur kan ondernemings hulle werknemers bemoedig om onreëlmatige en onwettige bedrywe openbaar te maak. Daar het wel probleme vorendag gekom in die WBB en in die beleid, maar daar is wel genoeg beskerm vir die werknemer om inligting openbaar te maak aan die korrekte persoon of persone sonder dat hy negatief beinvloed word. Sodra ’n werknemer die vermoedigheid het om navore tekom met inligting skep dit ’n vertroue kultuur in die onderneming wat op ’n latere stadium omsit in finansiele groei.

5. Bibliografie

ANGLOGOLD ASHANTI. 2010. CONFIDENTIAL REPORTING POLICY April. http://www.anglogold.co.za/NR/rdonlyres/2EC07695-447E-4039-9AB0-3CE52C5D964F/0/CONFIDENTIALREPORTINGApril2010.pdf. Datum van toegang: 21 Feb 2012.

ARCHER, B. 2009. The Price of Whistleblowing in South Africa, , 7 Januarie. http://www.bigsoccer.com/soccer/bill-archer/2009/01/07/the-price-of-whistleblowing-in-south-africa/. Datum van toegang: 19 Feb 2012.

BINIKOS, E. 2006. A Sociological case study of the relationship between organisational trust and whistleblowing in the workplace. Ongepubliseerde Meester Proefstuk. Johannesburg: Universiteit van Johannesburg.

CIVIL SOCIETY AGAINST CORRUPTION’S (CSNAC). 2006. Transparency South Africa Convened Meeting Calls for a Co-ordinate Response to Grand Corporate Corruption. Cape Town, 13 April 2006. http://www.iss.co.za/pgcontent.php?UID=20455. Datum van toegang: 13 Feb. 2012

DIE WET OP BESKERMDE BEKENDMAKINGS: Sien Suid-Afrika

SUID-AFRIKA. 2000. Wet op Beskermde Bekendmaking, No 26 van 2000. Pretoria: Regering Drukkery

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...Whistleblowing and Sarbanes-Oxley LEG 500 LEG 500 Whistle blowing has its origins from an example of law enforcement blowing a whistle when someone finds a crime or some wrongdoing process in a government. So when wrongs are taking place in government, the public they serve suffers (Chambers, 2014). The government is supposed to be open. Whistleblowers have to care about the issues that are going on in the workplace for them to commit such energy into the act. They have ethics and morals. The whistle blower is passionate about their work and its proper execution (Chambers, 2014; Lowry, Moody, Galletta, & Vance, 2013). The recent case of September 2014, Katherine Mitchell, Paula Pedene, and Damien Reese brought to light the wrongdoing at Phoenix Veteran Affairs hospital where records on appointment data were falsified to hide delays in treatment. There was financial mismanagement in the agency which was later confirmed by the inspector general after the three exposed the issue (Hicks, 2014; Lee & Fargher, 2013). Paula was punished by the management because she spoke against financial mismanagement in the hospital. She was given a desk and a job in the basement. Katherine's supervisors tried to sabotage her career by giving her a position of overseeing quality of patient care. Given that the three were protected under the Sarbanes Oxley act, they were later promoted by the agency. In this way whistle blowing is encouraged not punished. The three were......

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Whistle Blowing

...What is a whistle blower? What is a whistle blower? To the untrained eye, you may think that a whistle blower is a person who controls a sport or game with a loud device called whistle. In reality, a whistle blower has become an important part of the American business landscape. So what is a whistle blower? According to Blacks Law Dictionary, a whistleblower is an employee who turns against their superiors to bring a[n] problem out in the open. BusinessDictionary.com states that a whistle blower is a person who discloses improper or criminal activity within an organization. Finally, under Sarbanes Oxley, “A “whistleblower” is someone, usually an employee, who reports an employer who has broken the law to an outside agency.” Under this very important act, whistleblowers are protected by federal and state laws. Employers may not retaliate against them for reporting misconduct. Whistleblowers may not be fired or otherwise mistreated, and in some instances the government may reimburse them for costs incurred as a result of reporting. Most importantly, the federally enacted statute of Dodd – Frank defines a whistle blower as, “Any individual who provides . . . information relating to a violation of the securities laws to the Commission in a manner established, by rule or regulation, by the Commission.” There are two types of whistle blowers: external and internal. An internal whistle blower is a person who reports misconduct on a fellow employee or superior within their......

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Whistle Blowing

...complainants to be treated confidentially, and for the submission process to be anonymous for employees submitting the complaints about accounting or auditing matters. 2. The key criteria to create an effective corporate whistleblower hotline, is to ensure the employers are properly protected against as many possible lash back from whistle-blowing. This is the major deterrent to whistle blowing, as although law states employee rights are protected, sometimes it is ambiguous in trying to prove that an employee is being victimized, in which case, the employee rights would be rendered useless. The remedy to this dilemma is to assure employee confidentiality. According to the AICPA, an effective whistleblowing program must ensure that submissions of complaints related to accounting, internal controls, and auditing are automatically and directly submitted to the audit committee. Management personally should not have the opportunity to filter through complaints before submission to the audit committee. AICPA also mandates the level of confidentiality and trust. The audit committee should provide strong leadership in development and maintenance of whistle-blowing programs. Program is only successful if employees dully believe that the information submitted is confidential and that a follow-up action will be taken. 3. According to the Institute of internal auditors, the chief audit executive should report to a level within the organization that allows the internal audit......

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Whistle-Blowing

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...Blowing the Whistle Blowing the Whistle on Workplace Misconduct examines the corporate strategies that promote internal reporting when employees observe wrongdoing. Employees are more likely to blow the whistle on bad behavior when they feel good about their company and believe management has a strong commitment to ethical conduct. In 2009, more than six out of ten employees said they reported work place misconduct when they saw it. The share of workers who report negative behavior rose to 63 percent in 2009, a solid gain from 58 percent in 2007. Between 2000 and 2009 about 59 percent of employees on average said that they observed and reported misconduct, usually to an internal company authority. There is still much work to do because over the decade, four in ten employees who witnessed workplace misconduct did not typically report it. Some companies have linked ethical conduct to performance reviews to make it clear that good behavior is a job expectation. Other companies, believing that some workers do not report violations because they fear retaliation, and have set up hotlines that assure reporting can be done in private with less risk of being seen by a co-worker. Despite the prospect of retaliation, the data showed that most employees would rather report wrongdoing directly to somebody they know than to a hotline. Some employees believe their tips are more likely to be investigated when shared face-to-face instead of with a voicemail or an unfamiliar voice on the...

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Is Whistle Blowing Appropriate?

...Is whistle blowing appropriate? Whistle blowing legislation and organizational whistleblowing policies are intended to reduce the wrongdoing in organizations and protect the person that reports these wrongdoings. It is easier for employees to report wrongdoing when the issue of of a legal nature, as compared to wrongdoings that have an ethical issue to them. The legal wrongdoing is clearer and therefore the whistleblower has less confusion in the matter. Additionally, the whistleblower may feel that they are legally responsible if they do not report the behavior or incident (Tsahuridu & Vandekerckhove, 2008). Ethical wrongdoing is mercurial, leaving the issue open for translation, if it is not clearly stated as wrong in the company policies. Not all issues can be clearly covered even in a comprehensive policy. This leaves employees unclear about the situation and the appropriate action to take. Individuals in the workplace should feel safe reporting potential wrongdoing regardless of exact knowledge of its nature. Any circumstance that appears to be unethical to an individual should be reported and is appropriate. This will assist the individual in continuing to be a moral individual and support the development of an ethical organization (Alleyne, Hudaib, & Pike, 2013; Badaracco & Ellsworth, 1989). Does whistle blowing violate company loyalty? Whistleblowing does present itself as a conflict between the organization or organizational leader...

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...Whistle blowing is an act to disclose an organizational wrongdoing to parties that can take action. Sherron Watkins was the vice president of Enron Corporation that became a whistle blower in 2001. She sent an anonymous memo to Enron Chairman Kenneth Lay regarding the misstatements on the financial report. Enron hired lawyers from Vinson & Elkins to do an investigation on the financial misstatement allegations (Ackman, 2002). According to the memo from the investigations, after Watkins identified herself Lay held a meeting with her to discuss about her concerns regarding her allegations. The memo failed to indicate what Lay told Watkins. The investigation from Vinson & Elkins concluded that the questionable transaction that Watkins was concern about appeared proper (Ackman, 2002). Dan Ackman from Forbes argued that her action was not considered as whistle-blowing because she did not send the memo to parties that can take disciplinary action but actually provided legal cover for Kenneth Lay. Also, the fact that Watkins warned Lay about the misstatement of financial report indicates that Lay was not aware about the problem and did not do it on purpose. Watkins tries to put the blame mostly on Enron’s auditor Arthur Andersen and Vinson & Elkins and continued to provide cover to Lay and the board. Attitudes towards Whistle Blowing In today’s society, whistle blowing is viewed as misconduct and usually will cost a person’s job. In Watkins case, she said that Enron’s former......

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