BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Christel Jean M. Canja Grade 12-Lannister ABM

ETHICAL ISSUE IN BUSINESS/CORPORATE WORLD

“WHISTLEBLOWING”

I. Reference

https://www.0.freebasics.com/https/www.ukessays.com/essays/business/the-ethics-of-whistleblowing-in-
business-business-essay.php
file:///storage/emulated/0/Download/Free%C2%A0Basics%20(26).mhtml
https://www.0.freebasics.com/https/careertrend.com/info-8366554-effects-whistleblowing-business.html
https://www.0.freebasics.com/https/www.delta-net.com/compliance/whistleblowing/faqs/why-is-
whistleblowing-important

II. Summary of the case

Whistleblowing refers to the act of organization members, either former or current, disclosing

information on illegal practises within the organization to parties’ internal or external to the

organization, who can take action. It is becoming increasingly common as more and more

employees speak out about their ethical concerns. It cannot be denied that whistleblowing is

accompanied by a range of problems, for both the whistleblower and the organization.

However, it can be argued that whistleblowing is an important and valid method of endeavoring

to control possible unethical behaviour by organizations, as well as helping to establish a level

of social responsibility. For these reasons, it is important for society to maintain a level of

support and encouragement towards whistleblowers, so that their often valuable contribution

towards eliminating corporate wrongdoings can continue. In most of the cases, the employees

manage to keep their spirits high and dedicate their effort to the company for which they are

working. However, at times, situations arise during which a particular employee speaks ill of

the company after witnessing some unethical practices within the walls and outside. In these

cases, the employee who has revealed his or her company to the outside world is termed as a
 Whistle Blower. In the same vein, business owners must be able to respect and not penalize

employees who are deemed whistleblowers to either regulatory authorities or on social media.

This means that employees should be encouraged, and cannot be penalized, for raising

awareness of workplace violations online.

III. Analysis Report

a. Ethical Issue

Whistleblowing is a term used when individuals disclose information of wrongdoing or illicit

activity within a company or organization. There have been some well-documented cases

of whistleblowing over the years that have had effects on the organization and the

individuals who come forth. However, it is often an act that brings some form of justice to

those who are involved in the unscrupulous behavior.

The widespread nature of social media has made employees conduct online a factor in

their employment status. The question of the ethics of firing or punishing employees for

their online posts is complicated. However, the line is usually drawn when an employee’s

online behavior is considered to be disloyal to their employer. This means that a social

media post complaining about work is not punishable on its own but can be punishable if it

does something to reduce business. Though the company looks down upon a Whistle

Blower, it has to be admitted that being disloyal to his or her company, the Whistle Blower

actually shows loyalty to the society which is more ethical than unethical as this leads to the

development of the society in the long run. Thus, instead of cursing the Whistle Blower and

taking unfair actions against him or her blaming the person for committing treachery, the

company must resort to other relevant tasks so that the name of the company is not spoilt.

In this case, though the employee is bonded to his or her company by loyalty, he or she

feels the necessity to be loyal to the society first and save many lives from further harm.
b. Gravity of offense, Harm done, Cost, People affected

Stress

For those who engage in whistleblowing on a company or organization, the stress can

become overwhelming. Many whistleblowers remain at their place of employment after

coming forward since it is illegal to fire someone for it. However, those people often

experience symptoms such as anxiety, insomnia and headaches. In these types of

situations, there are sometimes retaliatory acts against the whistleblowers causing them

heightened stress and discomfort in their job. Stress can also be caused by being closely

supervised or alienated by fellow employees.

Termination

Some people have been terminated for whistleblowing even though it is illegal. If you are

terminated, you have to prove a whistleblowing violation. For example, an employee needs

to prove that he engaged in a protected activity such as asking for overtime pay, reporting

sexual harassment or applying for medical leave, and that the employer took action to

prevent it. If you are fired for whistleblowing, it is within your right to file a lawsuit against

the employer.

Mistrust

One of the effects whistleblowing can have on a company or organization is a lack of trust

in the internal system. This can be counterproductive to a company if its employees start to

become suspicious of the policies and behaviors of the employer. Whistleblowing can have

adverse effects on a company if the employees believe that management is not held to the

same standard. It can result in employees quitting the company.

 Positive Effects

There are also positive effects that can result from whistleblowing. It can change policies

that benefit employees as well as other individuals. For example, in 1996 Jeffrey Wigand, a

tobacco researcher, blew the whistle on the Brown & Williamson Tobacco Corporation,

claiming the company knew tobacco was addictive. The result was a change in public

policy, as well as a change in public perceptions of the tobacco industry. This had a far-

reaching positive effect on society as a whole.

c. Whistleblowing in Action

The recent failings of the Mid Staffordshire NHS Foundation Trust have been plastered

across headlines in recent years. Though a large proportion of healthcare workers were

scared to speak out, the bravery of a few sought to address a multitude of local failings. It is

estimated that poor care tragically led to the deaths of between 400 and 1100 patients

across 50 consecutive months, spanning from 2005 to 2009. Therefore, a delay in

whistleblowing of a single year could have risked hundreds of lives. This highlights the

importance of prompt reporting and individual responsibility.

d. The Risks of Whistleblowing

Sadly, despite efforts to combat mistreatment of whistleblowers, risk still exists. The

potential mistreatment largely surrounds team attitudes. Whilst whistleblowers are

considered by some to be courageous, others see them as "snitches". This can result in

whistleblowers being victimised by their teammates and suffering unfair treatment. A large

proportion of whistleblowers leave their job in the year following their complaint, be this

voluntarily or forced. In order to mitigate this risk, the UK government passed the Public

Interest Disclosure Act 1998, preventing detrimental treatment of whistleblowers by their

employers.
e. The Importance of Whistleblowing

When debating whether to whistleblow, it is important to consider the bigger picture. Whilst

it can be a daunting process to enter into, the greater good of the general public must

receive priority. In essence, the benefits outweigh the risks and it is the duty of all workers

to remain vigilant for wrongdoing and act on it accordingly. It is important to familiarise

yourself, and any employees, with both whistleblower rights and responsibilities. You can

promote a whistleblowing culture in your organization by creating and advertising a

whistleblowing policy. Additionally, raising awareness of whistleblowing is fundamental to

adopting an open culture. Thorough and regular whistleblower training can help arm you

with the skills necessary to combat fraud and misconduct in your place of work.

f. The Benefits of Whistleblowing

Whistleblowing is an ethical thing to do. It addresses wrongdoing and allows justice to

reach the depths of companies that otherwise may remain unexposed. Honesty amongst

employees helps to cultivate dedication towards the company's mission. Similarly,

transparency facilitates clear and effective business communication. Whistleblowing is

vitally important in protecting a company's customers and in directly protecting your

organisation through combatting fraud and misconduct. The dire alternative is risking legal

prosecution, major fines and a public scandal, accompanied by a substantial loss of

reputation. Removing these risks means that employees can focus on more important

matters, such as core business needs and the organisation's success. On a larger scale,

fraud costs taxpayers an inordinate amount of money every year. By promoting a

whistleblowing culture we can crack down on fraud and prevent this unnecessary loss of

capital.