Pros And Cons Of Whistleblowers

NSA’s Edward Snowden, FBI’s Mark Felt, White House Staffer Linda Tripp, Kerr-McGee’s Karen Silkwood and Sherron Watkins of Enron are all on the same list of famous whistleblowers. All of these people have become famous because they provided information with the sole purpose of revealing wrongdoings by someone or a company. Some believe whistleblowers are traitors and should be punished: while others believe they are heroes and should be honored. Whistleblowers are being acknowledged as a great threat to companies and managers are realizing that they need to know who they are and what they will do if their company is faced with this situation.
Summary
Tim Barnett, Assistant Professor of Management at Louisiana Tech University, wrote an article expressing why he thinks companies should adopt a whistleblowing policy. Whistleblowers are individuals that call attention to possible wrongdoing and are exposed to a great deal of controversy. Some believe whistleblowers sacrifice themselves, professionally and personally to reveal practices that are fraudulent or harmful to the public. Others believe they are just disgruntled employees who are accusing people that have mistreated them. The truth probably lies somewhere between the two opinions. In some ways it is beneficial to have whistleblowers out there because they
do make known abuses of some powerful people or companies. However, sometimes they are wrong and in the process they have ruined the reputation of those involved. Barnett believes every organization should seriously consider this issue and its ramifications. Because of potential damaging costs to your organization, it is not an issue that can be ignored. Barnett’s review of whistleblowing incidents showed that among the whistleblowers surveyed, 62% lost their jobs, 18% felt that they were harassed or transferred, and 11% had their job responsibilities or salaries reduced. Fifty-one percent of the incidents resulted in external investigations of the companies involved, 37% in management shake-ups, 22% in criminal investigations, and 11% in indictments. Barnett points out that research suggests the following conditions are necessary for whistleblowing to be managed effectively within an organization:
1. Employees must be educated in the process in which to communicate their concerns internally.
2. Employees must believe that their concerns will be taken seriously.
3. Employees must feel that they will suffer no personal retaliation.

The author believes there are legal, practical and ethical essentials that make whistleblowing policies a must. There is an increase in both state and federal protection for whistleblowers. Most of these laws state that employees have a right to report illegal or dishonest actions of their employers to regulatory agencies without consequence of reprisal. Many courts have awarded assistance for whistleblowers. In the absence of any whistleblower policies, a company could be susceptible to employee lawsuits. Barnett claims there are practical reasons for adopting a policy because wrongdoing is almost sure to happen. Whistleblowing is on the rise and you do not want to leave your company defenseless. Whether a whistleblowers’ actions are justified or not, retaliation accomplishes little and may cost the company a great deal. Establishing a policy that allows employees to communicate their concerns internally first, can save your company time, money and reputation. The ethical imperative explained by Barnett is to create a just workplace. A just workplace is where a company is committed to high standards of ethical conduct; and employees can express concern about unethical practices without being treated unfairly. Companies need to have more than just a policy for whistleblowers.
They need to have a plan for if whistleblowing actually occurs. Managers must have a plan to minimize the possible damage to the company. Managers must listen to the complaints with respect. This is a time to gather information and build a better working relationship with the employee. Managers must respond quickly and in a manner that satisfies the employee. Ignoring the problem and hoping it will go away will only make it worse. Managers must address the issue and ensure the employee that they are taking their concerns
seriously. Whistleblowing can be harmful or helpful to a company depending how management prepares and reacts to the issue. If management encourages people to speak out and trust their managers, employees are more apt to keep it internal and not go public. If they do not feel they can trust their management they are likely to go public.