Ethics and the Conduct of Business

Eighth edition

Chapter 4

Whistle-Blowing
By
Dr. Nezar AL-Samhi

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 Corruption

• Corruption

• Corruption is a complex social-political and

economic phenomenon that affects all
countries and obstacle the rule of law.

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 What is Whistle-Blowing?
• Whistle-Blowing
– The release of information by a member or
previous member of an organization
• proof of illegal or unethical behavior in the
organization.

• behavior in the organization that is not in the public

interest

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 Whistle-blowing in business ethics?

• The ethics of Whistle-blowing: refers to that

action from organization members, either
previous or current, to spread information on
illegal and unethical practices within the
organization to parties internal or external to the
organization, who can take action.

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 Whistle-blower Examples

• Whistle-blower Examples Include Employees

Who Report Corruption, Discrimination,
Harassment, and Fraud. Examples of
whistleblower cases?

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 Whistle-blower Examples

• Some of the most common whistle-blower

cases involve employees reporting:
• Corruption: This type of case includes reporting a
clear range of illegal conduct. Bribery is one of the
best-known examples, but corruption also covers
fraud, embezzlement, robbery and bribes.

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 Whistle-blower Examples

• Racism & discrimination: If two employees in similar

situations are treated differently as a result of one
person’s race, color, origin, national, or immigrant status,
this is legally considered Racism discrimination.
therefore, many of these factors are often used to
unfairly determine who receives a job, promotion, or
other benefits in the workplace.

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 Whistle-blower Examples

• Sexual harassment: There are many laws and

policies in place to protect workers from
unwanted sexual advances or abusing remarks,
but these are often under-enforced. As a result,
many cases of sexual harassment which
unreported.

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 Whistle-blower Examples
• Fraud: Fraud refers to any wrongful or criminal cheating
undertaken to gain financial or personal benefits. so
Fraud can be committed in almost any field, including
business, education, and government. The most common
examples are price fixing, over-billing or billing for
services not performed, concealing safety concerns. or
Hiding the Exact Income in order non giving the income
tax, So There are a lots of complain Against those who
commit fraud against the government.

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 Whistle-blower Examples

• These cases are the most common, but

whistle-blowing covers the reporting of any
safety or legal wrong doing, including the
unethical disposal of industrial chemicals
or requiring employees to work in unsafe
conditions.

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 The Sincere Agent

• The Sincere Agent Argument is

– An argument against the right of an
employee to blow the whistle because
• An employee is an agent of an employer
– The main duty of an agent is to act in the interest of
the chairperson

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 Exit, Voice, and Loyalty, honesty
• Exit, Voice, and Loyalty,
– Members of organizations can respond to
non-satisfaction by
• Leaving the organization
• Speaking up and making the non-satisfaction known in
the hope of bringing the change to the Organization.

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 Exit, Voice, and Loyalty
• Loyalty is
– A factor that keeps people from exiting an
organization and activates the voice option
• According to Loyalty, those people who speak up are
the most loyal
– They want to get organization back on the right
track

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 Is whistle-blowing ethical?

• The ethics of whistleblowing is a difficult

matter. that whistle-blowing brings two
moral values, justice and loyalty.

• Therefore loyalty is a powerful moral value

but, it may prevent those who wish to a
whistleblower

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 Current Legal Protection

• Civil Service improve that rules to stop taking

revenge against:
– Employees who report case of waste and
corruption in government

• It also set up the feature of System Protection

to receive and acts on complaints of revenge.

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 The Arguments for Whistle-Blower
Protection
• If the whistle blowers appear
– The Danger will harm and involve the
public as well as the blower.

• We have a moral right to the freedom of

speech and should be protected.

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 Benefits and Dangers of this Policy

• Benefits
– Company learns about problems early

• Can take correction of action before the

problems become public
– company’s confirm the commitment to good ethics

• Creates an ethical climate for the companies

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 Benefits and Dangers of a Policy

• Dangers
– Encourages the employees to report on each
other.

– Can create untrusted environment.

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 The element of a Whistle-Blowing
Policy
• The Whistleblower Policy is planned to encourage
employees and others to make good faith reports of
suspect fraud, corruption, or other illegal
governmental activity, or health and safety trouble
within any sectors.

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 The element of a Whistle-Blowing
Policy
• A clearly defined procedure for reporting
• Well-trained personnel to receive complaint and
doing the investigation reports.
• A commitment to take appropriate action or Judgment

• A guarantee against revenge

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 Complaint And Whistle-blowing
• What is the difference between making a
complaint and blowing the whistle?
1. A complaint normally relates to an individual
personally. This could be unfair treatment by a
colleague or something against their contract of
employment. therefore, the individual has an
interest in the outcome of the complaint.

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 Complaint And Whistle-blowing
2. report of information by a whistle-blower
normally relates to something that may not
personally impact the individual but will impact
on all the employer or a third party or majority.

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 Anti-Corruption

Anti-Corruption

•Principle : Companies and government should

work against corruption in all its forms,
including blackmail and bribes.

•And ???

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 • 1. prevention of corruption by publishing awareness
about its effects .

• 2. Imposing sanction or penalty for those who are

proved to depend on corruption in their action .

• 3. offering rewards to those who report corruption .

• 4. provide protection for them.

• 5. Good governance to eliminate this phenomenon

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