Corruption
in any organization will be identified by the employees
of that particular organization in the first instance. Employees
of an organization are privy to many secrets and information
pertaining to the organization that they are working for.
Any unethical, immoral or illegal actions that are taking
place come to the notice of the employees. The employees
are actually within the 'crime vicinity'. In most of the
situations the employee does not react to these unethical
activities whatsoever maybe the reason. They either turn
a blind eye towards these or relinquish their job. But there
are others who would like to bring these discrepancies to
the notice of the authorities. Such an employee, or member
of an organization, especially a business or government
agency, who reports misconduct to people or entities that
have the power and presumed willingness to take corrective
action is termed as 'whistleblower'. The misconduct reported
in such a manner is generally something which has a potential
to become a direct threat to public interest. Although the
term `whistleblowing' is not a new phenomenon, it has made
entry into the vocabulary of public and corporate affairs
recently.
The
term whistleblower has its origin in United Kingdom. The
term can be attributed to the action of the 'English bobbies
(police constables)' who blew their whistle when they noticed
the commission of a crime. This whistleblowing is done with
an intention to alert the law enforcement authorities as
well as the public. Thus to save the public. The motive
behind the act of whistleblowing 'then and now' is similar
i.e., for safeguarding the public good.
Modern
time whistleblower can be an employee or other person with
inside knowledge of wrongdoing either inside a company or
a government agency. Whistleblowing can be classified into
two i.e., internal whistleblowing and external whistleblowing.
Internal whistleblowers report misconduct to another employee
or superior within their company or organization whereas
an external whistleblower reports misconduct to outside
persons or entities like the media or law enforcement authorities.
Internal whistleblowing is often helpful to the organization
or company itself, as it helps them to correct their discrepancies
internally and save themselves from embarrassment before
the public. Instead of giving a serious thought about the
discrepancies pointed out by the 'employee' and rectifying
it, the organization generally try to keep the issue under
wraps by harassing the employee. The downfall of Enron Corporation,
USA is an example for this. The then Enron Vice President
for corporate development Sherron S. Watkins pointed out
the inconsistency in Enron's accounting practices in 2001.
Whatever
be the type of disclosure, the whistleblowers are often
harassed. Most of the employers view whistleblowing narrowly
and try to limit the impact of whistleblowing by trying
to prove the 'so called malicious interest' of the whistleblower.
More often the action of these employees is categorized
under 'disloyalty'. The fellow employees also join hands
with the employer and mete out harassment to these whistleblowers.
The act of harassments includes victimization, legal actions,
assault etc. Most of these people are under constant death
threat. Joe Darby who brought out the Abu Gharib prison
(at Iraq) abuse is under constant government protection
as his life is under threat. There are instances wherein
the whistleblowers were murdered in order to hush up the
misconduct that they brought out to the public. In India
Satyendra Dubey who was project director at the National
Highways Authority of India (NHAI) was murdered because
he uncovered a large-scale breach of NHAI rules regarding
sub-contracting and quality control. Though the act of whistleblowing
is done with an intention to 'correct a wrong' it is not
often perceived so. This kind of response to a noble act,
time and again deters the 'employees' to turn a blind eye
towards the misconduct that they are witness to, and continue
with their day to day activities.
Whistleblowing
if encouraged can root out many evils that are existing
like corruption. Unless the people are assured that they
will be protected by law after their act of 'disclosure'
not many will come forward to do such an act. Realizing
this need the USA, UK, Australia etc., have enacted certain
legislations. In the United Kingdom, the Public Interest
Disclosure Act 1998 was enacted with an objective to protect
those individuals who disclose information so as to expose
malpractice. In USA, the first enactment regarding protection
for whistleblowers was Lloyd-La Follette Act of 1912. This
enactment granted protection only to federal government
employees. The Sarbanes-Oxley Act, was enacted in 2002 specifically
for corporate fraud whistleblowers. In Australia the Public
Service Act was enacted in 1999 to provide protection for
employees of Australian Public Service Agencies. Though
these enactments are in place, there is no proper definition
of the types of disclosures that need to be granted protection.
Every legislation is vague on this regard. Countries like
India do not have a specific legislation to protect the
whistleblowers. After the murder of Satyendra Dubey an Ordinance
for whistleblowers' protection was promulgated in India
in 2004. Unless a specific policy is framed which gives
ample protection for the whistleblowers, people will not
be confident to reveal the misconduct that they are witness
to in their organization.
The
articles in this book gives an introduction to the concept
of 'whistleblowers' and the related legislations that are
existing around the world. The articles also try to analyze
the existing legislations, the shortcomings in them and
emphasizes the need for a well defined legislation on whistleblowers
and their protection.
Any
'discrepancies' in an organization comes first to the notice
of the employees. Most of the time they do not react to
this. This silence of employees can be attributed to their
fear of harassment, isolation, dismissal. The article 'Whistleblowing
the State of the Art' (The Role of the Individual, Organisations,
The State, The Media, The Law and
Civil
Society) by Guy Dehn and Richard Calland takes a look at
the different types of whistleblowing, the manner in which
the disclosure of such people are looked into and analyses
the need for a concrete policy on this issue.
Though
whistleblowers are treated as an asset to the society they
suffer enormously for their 'disclosure'. More often the
actual 'issue' which they disclose is forgotten and they
turn out to be the target of ridicule and harassment. Five
methods of inhibiting outrage are followed by the perpetrators
of any wrongdoing or crime in general (cover up, devaluate
the target, reinterpretation, using official channels to
give only the appearance of justice and intimidation and
bribery). The article 'Bucking The System: Andrew Wilkie
and The Difficult Task Of The Whistleblower' by Brian Martin
describes the manner in which Andrew Wilkie, an analyst
in the office of National Assessments, Australia dodged
the five methods to bring out the wrongful act.
Employees
who ascend the success ladder in a company using unethical
means fetch more respect than the whistleblowers. Yet, the
whistleblowers are increasing. The consequences of a whistleblower's
actions generally are equivalent to the consequences of
committing a criminal act. The attempt of the whistleblower
to 'correct' the wrong doing is often forgotten. The article
'The Necessary Illegitimacy of The Whistleblower' by Kim
Sawyer, Jackie Johnson and Mark Holub emphasizes the need
for whistleblower legislation which has to be designed to
protect the whistleblower against the retaliatory actions
of the organization, and safeguard whistleblower's moral
integrity.
Whistleblowing
is treated as a 'socially responsible dissent' in Australia.
Employees opt for external whistleblowing, as the internal
whistleblowing will place them in an embarrassing position.
Internal whistleblowing is actually beneficial for the companies
themselves as they can save themselves from public humiliation.
Though legislations are in place regarding protection of
whistleblowers in Australia and New Zealand there is no
clear bifurcation between the internal and external whistleblowers.
The article 'Whistleblowing: The Advantages of Self-Regulation'
by Andrea Bather and Martin Kelly emphasizes the need for
an effective whistleblower policy that will be beneficial
both for the organization as well as for the whistleblowers.
Problems
and scandals exist both in government as well as corporate
sectors. Whistleblowing is not a new phenomenon and it existed
even in the 1850s. The need for implementation of a whistleblowing
policy and certain best practices to be followed is the
main theme of discussion in the article entitled 'Whistleblowing
and Good Governance' by Tim V Eaton and Michael D Akers.
The article is concluded by providing certain guidelines
which has to be followed while drafting a whistleblowing
policy
.The
abuses at Abu Gharib was brought to the notice of the authority
by a major whistleblowing after USA declared 'global war
on terrorism'. Darby who was the whistleblower, received
and is still receiving death threats and is under permanent
government protection. The 'first amendment' in USA is looked
upon as a provision which if invoked would protect the whistleblowers
which in reality speak otherwise. Michael P Scharf and Colin
T McLaughlin in their article 'On Terrorism and Whistleblowing'
argue that the government whistleblower who in good faith
discloses information to the press should no longer be treated
as an enemy of the state, and provide a legislative proposal
to give them a greater degree of protection from retaliation
than that which exists under current legislation.
Sarbanes
Oxley Act 2002 (SOX) of USA grants civil remedies to certain
corporate Whistleblowers'. It prohibits 'retaliation' by
the companies against the whistleblowers'. The article 'Sarbanes
Oxley Whistleblower Law: Summary and Review' by Debra S
Katz discusses various cases wherein whistleblowers were
granted protection and vice versa. It also discusses about
the rules promulgated regarding the reporting requirements
of attorneys who are practicing before the Securities Exchange
Commission, on any material violation of the Securities
Act, by their clients.
Sarbanes
Oxley Act 2002 was enacted to restore investor confidence.
Though the Act was intended to address domestic concerns
the impact was felt globally due to the important role played
by USA capital markets internationally. The Act provides
terms for protection of whistleblowers in certain disclosures,
but these are not extended to foreign workers employed by
the overseas subsidiaries of US companies. The article 'Between
A Rock and A Hard Place: The Sarbanes-Oxley Act and Its
Global Impact' by Paul Lanois explores the extraterritorial
application of Sarbanes-Oxley and US securities law.
Voicing
concerns over matter that are of public interest, both in
public and private sectors is a recognized thing. The article
'Symbols or Substance? Priorities for the Reform of Australian
Public Interest Disclosure Legislation' by A J Brown and
Paul Latimer takes a brief look at Australia's eleven recent
public sector laws as well as bills that is pertaining to
Australian public interest disclosure laws. The article
tries to define a 'whistleblower' (none of the statutes
actually define a whistleblower) and the types of wrongdoing
that can form subject of disclosures which are to be granted
protection. The article emphasizes on the fact that there
is a need to strengthen employers' obligations to protect
the whistleblowers irrespective of whether they are found
in the public or private sectors.
Employees
of any organization have the option of either internal or
external whistleblowing. Before opting for external whistleblowing
the employees should exhaust the available internal whistleblowing
mechanisms. To encourage employees to decide on whistleblowing,
a specific legislation which identifies the types of 'disclosure'
that ought to be protected is necessary. The existing statutes
in Canada regarding whistleblowers both in private and public
sector are confined only to 'disclosures' on specific issues.
The article 'The Need for Whistleblowing Legislation in
Canada: A Critical Defense' by Jonathan Carson suggests
that the objective of whistleblowing legislation must be
to define a mechanism for reporting and protection for the
whistleblower within the proper channel.