Whistle blowing

"Our lives begin to end the day we become silent about things that matter." -Martin Luther King, Jr.

Overview 
      

What is Whistle blowing? Stages involved History of whistle blowing Few instances Laws in India Protection of whistleblowers Managing whistle blowing Whistle blowing in U.S.A

What is Whistleblowing? 

Whistle blowing is«  'Raising concerns about misconduct within an organization or within an independent structure associated with it' (nolan committee on standards in public life) 

'Bringing an activity to a sharp conclusion as if by the blast of a whistle' (oxford english dictionary) 'Giving information (usually to the authorities) about illegal and underhand practicesµ
(Chambers Dictionary) 

Stages involved in the process 
  

There is a misdeed or illegal activity in the organization A perception that either the management can prevent it or that it has been initiated by management or certain employees. The presence of an individual or group of people who view that some action should be taken against the illegal activity. Finally, there is a process by which the individuals or group try to expose the problem to the authorities who can take action

ILLEGAL ACTIVITY

Concerned individuals or groups

Rumours

Stake holders Organizat ional response

Whistle blowing

History of whistle blowing 

Hughes microelectronics case in 1980s. A series of environmental tests were specified by the government contract. But pressure to ship chips out on time to customers got in the way of complete testing. "Hot" chips, those needed right away for shipment This case is about what happened when employees of Hughes Microelectronics noticed that these tests were being skipped. The decisions they made to report this makes this one of the classic cases in the history of whistle blowing. blowing.  

Whistleblowers 

Vijay Bahadur Singh, a Superintendent of Customs at the Singh, Vigilance Directorate of Customs & Central Excise in Mumbai, sent an email dated 28th February 2003 to the APJ 28th Abdul Kalam President of India when he observed that manipulation was being committed by senior officers of the Finance Ministry and Senior Counsel. Counsel. Satyendra Dubey, who accused employer NHAI of corruption Dubey, in highway construction projects in India, in letter to Prime India, Vajpayee. 27, Minister Atal Behari Vajpayee. Assassinated on November 27, 2003  

S. Manjunath, a formerly manager at Indian Oil Corporation Manjunath, Ltd (IOCL), and crusader against adulteration of petrol. He was shot dead on November 19, 2005, allegedly by a petrol Pradesh. pump owner from Uttar Pradesh. Amit Jethwa was an environmentalist and social worker and an RTI activist was murdered on 20th July 2010, for filing a PIL against illegal mining lobby. 

Laws in India 

India does not have a whistleblowers protection law yet. However since the Public Interest Disclosure and Protection of Informers Bill, 2002 is still being examined, the centre agreed to making the Central Vigilance Commission, the sole authority in protecting future whistleblowers. Like whistle blowing law, a properly implemented witness protection program would also help get at powerful evil doers.  

continued 

India neither has any witness protection programmed like the one in the USA nor does our criminal penal code carry any provision concerning this. A short while ago a preliminary analysis of the Public Interest Disclosure and Protection of Persons Making Disclosure Bill, 2010 (the Whistleblower Bill) has been tabled in the Lok Sabha. Sabha. 

Whistle-blower policy in India Whistle

While the government still has to bring out a comprehensive whistlewhistle-blower policy, the Securities and Exchange Board of India (Sebi), the market regulator, included guidelines for (Sebi), companies in an amendment to Clause 49 of the listing agreement in August 2003. Under the guidelines ‡ An employee wanting to report a fraud or malpractice in his organization has direct access to his company¶s audit committee and can approach it without seeking the consent of his superiors  

The company will send a circular or other correspondence to all its employees informing them that they enjoy this right; it will also protect them from harassment such as termination of services or otherwise discriminate against them ‡ The company will confirm that it has adhered to the above practice in its annual report, in the Board report on Corporate Governance 



Protection of whistle blowers 

From the management point of view the important aspect would be keeping the issue from getting out of control, avoiding criticism from public and preventing image loss. HR is considered a neutral department in organizations and can play a critical role in hearing the voice of employees Assigning accountability officers and providing special telephone numbers and e-mail accounts encourage employees eto bring out issues and will help in maintaining anonymity.   

Ms jayashree¶s attempt to save her husband M.N Vijayakumar, a bureaucrat in the southern state of Karnataka, is trying hard to protect whistleblowers like her husband is path breaking.

Managing whistleblowing

Legal History of U.S 

The first U.S. law adopted specifically to protect whistleblowers was the Lloyd-La Follette Act of 1912. It Lloyd1912. guaranteed the right of federal employees to furnish information to the United States Congress. Congress. The first U.S. environmental law to include an employee protection was the Water Pollution Control Act of 1972, also 1972, called the Clean Water Act. Similar protections were included Act. in subsequent federal environmental laws including the Safe Drinking Water Act (1974), Resource Conservation and 1974), Recovery Act (also called the Solid Waste Disposal Act) Act) (1976), Toxic Substances Control Act (1976), Energy 1976), 1976), Reorganization Act of 1974 (through 1978 amendment to protect nuclear whistleblowers), Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, or the Superfund Law) (1980), and the Clean Air 1980), Act (1990). 1990)  

Similar employee protections enforced through OSHA are included in the Surface Transportation Assistance Act (1982) 1982) to protect truck drivers, the Pipeline Safety Improvement Act (PSIA) of 2002, the Wendell H. Ford Aviation Investment and 2002, Reform Act for the 21st Century ("AIR 21"), and the 21st 21"), Sarbanes-Oxley Act, enacted on July 30, 2002 (for corporate SarbanesAct, 30, fraud whistleblowers). whistleblowers).

2002: Year of the Whistleblower in U.S.A

Cynthia Cooper WorldCom

Coleen Rowley FBI

Sherron Watkins Enron

ISSUES 
 

PROTECTION OF WHISTLE BLOWERS ROLE OF WHISTLE BLOWER IN A CORPORATE SCAM WHISTLE BLOWING POLICY AND THE POSITION IN INDIA

PROTECTION OF WHISTLE BLOWERS  

Why protection is necessary? "If you must sin, sin against God, not against the bureaucracy. God may forgive you, but the bureaucracy never will!" ² U.S. Admiral Hyman Rickover The high cost of `going public¶ fired, demoted or punished  

PROTECTION INITIATIVES
The sarbanes-oxley act of 2002(US) sarbanes2002(US) Public interest disclosure act of 1998 (u.K.) Protected disclosures act of 2000(south africa ) 2000(south A number of countries such as australia, canada, south australia, canada, korea, argentina, russia, slovakia, korea, argentina, russia, slovakia, mexico and nigeria have enacted or are in the process of enacting whistleblowers protection legislation (but only to government employees). employees).   

PROTECTING WHISTLEBLOWERS IN INDIA 

There is NO act for protection of whistle blowers in India After a long wait, a legislation aimed at protecting whistleblowers will be taken up by the cabinet on Thursday, 2nd dec 2010. 2010. Once the Cabinet approves the draft, government intends to introduce it in the current session of Parliament.   

The bill has provisions to prevent victimization or disciplinary action against those who expose corruption in government. The legislation makes central vigilance commission (CVC) the nodal authority CVC will have powers to ensure all steps are taken to protect the whistleblower & to punishment.  

Role of Whistle Blower in a Corporate Scam 

To make the wrong doings of the scamsters public. To check the irregularities within any corporate body. No personal vendetta Good faith   

Whistleblower Protection Act of 2007 

The U.S. Supreme Court dealt a major blow to government whistleblowers when, in the case of Garcetti v. Ceballos, it ruled that government Ceballos, employees did not have protection from retaliation by their employers under the First Amendment of the Constitution. The free speech protections of the First Amendment have long been used to shield whistleblowers from retaliation by whistleblower attorneys. In response to the Supreme Court decision, the House of Representatives passed H.R. 985, the Whistleblower Protection Act of 2007. President George W. Bush, citing national security concerns, promised to veto the bill should it be enacted into law by Congress. The Senate's version of the Whistleblower Protection Act (S. 274), which has significant bipartisan support, was approved by the Senate Committee on Homeland Security and Governmental Affairs on June 13, 2007. However, it has yet to reach a vote by Senate as a hold has been placed on the bill by Senator Tom Coburn (R(ROK). According to the National Whistleblower Center, Coburn's hold on S. 274 has been done to further President Bush's agenda. 

To make the wrong doings of the scamsters public.
What makes some employees blow the whistle against wrong practices and corruption in the organization. How it impacts the organization and the whistle blower, and what organizations can do to create an environment which helps employees to prevent organizationally and socially undesirable practices.

To check the irregularities within any corporate body.   

To check illegal, immoral or illegitimate practices under the control of their employers, to persons or organizations that may be able to affect action. While the reporting of sensitive issues may be part of the individual's role within the organization (e.g., internal auditors, inspectors), when the individual finds it necessary to reveal such findings to organizational members outside the normal chain of command, it is also considered whistle-blowing through internal channels. whistleWhistle blowing also encompasses situations where individuals go out of the organizational hierarchy and make information available to public or other external authorities to get a positive action.

No personal vendetta   

Not out of business rivalry or the vengeance Not between the people who are on inimical terms with each other Within the territorial limits of the law

Inquiries made in Good Faith   

To expose the illegal conduct of the employees and the irregularities The sensitive information must be well reasoned with understanding among the employees The issue of conformity

Satyam case and the Swarna Telecom scam  

A software company, touted as a success story, the 4th largest software company in India and one that services around 1/3rd of the Fortune 500 companies, has come as a shock for the general masses. The huge estimated surplus of more than $1.2 billion to buy companies related to the promoter (especially when the promoter held only 8% shareholding in the company) was a huge blow to all norms of corporate governance and met with huge resistance all over.

Contd«. Contd«.  

Swarna telecom scam exposure includes the names ³Barkha Dutt´ and ³Vir Sanghvi´ in connection with Dutt´ ³Vir Sanghvi´ lobbying the Congress on behalf of DMK¶s Kanimozhi for Ministerial berths. The references seem to follow a report from a website called Whispers in Corridors and based on what appear to be notes in an ³Internal Report´ summarizing telephone intercept conversations. The Swarna Telecom acted as the frontrunner for the bid on behalf of the Reliance Telecom and the latter had a 10% stake in the former company. Goes against the business ethics

WHISTLE BLOWING POLICY AND THE POSITION IN INDIA

AN INSIGHT INTO THE SANCTITY OF THE PROCESS

THE RIDER 

IT SHOULD BE IMPLEMENTED IN SPIRIT, AND NOT JUST IN FORM

What is whistle blowing? A SNEAK-PEAK INTO THE MODUS-OPERANDI SNEAKMODUSLa¶ AFFAIRE¶ COMPANIE¶  

Formulated to provide an opportunity to employees or any outsider to access to the audit of the company. Someone blows the whistle when they tell their employer, a regulator, customers, the police or the media about a dangerous or illegal activity that they are aware of through their work.

APPLICABILITY OF THE POLICY  

THIS POLICY APPLIES TO ALL THE EMPLOYEES AND MANAGERS OF COMPANY AND ITS CONCERNS IN INDIA. NO ADVERSE PERSONNEL ACTION MAY BE TAKEN AGAINST THE EMPLOYEE IN RELATION TO HIS ³DISCLOSURE¶¶ IN GOOD FAITH OF ANY UNETHICAL AND IMPROPER PRACTICE OR WRONGFUL CONDUCT.

PROCEDURE 
  

  

WHISTLE BLOWER COLLECTS THE DATA REPORT SENT TO ³COMPLIANCE OFFICER.´ PROMPT ACTION BY THE ³AUDIT COMMITTEE´ INTERNAL POLICIES OF THE COMPANY FALSE ALLEGATION THREAT CORROBORATION OF EVIDENCE NOTIFICATION ± BY THE DEPARMENTAL HEADS

CONCLUSION  

³WHISTLE BLOWER POLICY IS THE BEST WAY TO CHECK CORPORATE FRAUDS´FRAUDS´- MARK DUCHVET POST SATYAM SCANDAL EXPERTS SAY IT IS THE BEST WAY TO PREVENT CORPORATE FROM BLOWING AND TO STRENGTHEN THE CORPORATE GOVERNANCE FRAMEWORK FOR THE LISTED COMPANIES. 

THANK

YOU

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