WHISTLEBLOWING "Our lives begin to end the day we become  silent about things that matter."  -Martin Luther King...
Overview <ul><li>What is Whistleblowing? </li></ul><ul><li>Reactions </li></ul><ul><li>Laws Protecting whistle Blowing </l...
What is Whistleblowing? <ul><li>Whistleblowing is… </li></ul><ul><ul><li>'raising concerns about misconduct within an orga...
TYPES OF WHISTLE-BLOWING <ul><li>Internal whistleblowing:   who report misconduct to a fellow employee or superior within ...
REACTIONS <ul><li>Selfless Martyrs v/s Snitches </li></ul><ul><li>IMPACT: </li></ul><ul><li>Termination  </li></ul><ul><li...
LAWS PROTECTING WHISTLEBLOWERS <ul><li>Federal Whistleblower Protect Act 1989 </li></ul><ul><li>Federal False Claims Act <...
WHISTLEBLOWER WEEK IN WASHINGTON <ul><li>The week of May 13-19 2007, whistleblowers from all over the country gathered in ...
What to think about <ul><li>The “mom” test: </li></ul><ul><ul><ul><li>“I’m going to be in this industry a long time.  Will...
How to Blow the Whistle <ul><li>Do it anonymously </li></ul><ul><ul><ul><li>let the evidence speak for itself and protect ...
Risks of Whistleblowing <ul><li>WB rarely works out well for the whistleblower </li></ul><ul><ul><ul><li>Viewed as a “rat”...
Statistics <ul><li>Polling Group: </li></ul><ul><ul><ul><li>233 individuals polled, 40% responded </li></ul></ul></ul><ul>...
Statistics <ul><li>Negative Effects: </li></ul><ul><ul><ul><li>51% of Govt employees lost their job </li></ul></ul></ul><u...
Ethical Dilemma <ul><li>The Mum Effect --reluctance to blow the whistle </li></ul><ul><li>The Deaf Effect --reluctance to ...
2002:  Year of the Whistleblower Cynthia Cooper  WorldCom Coleen Rowley FBI Sherron Watkins Enron
Sherron Watkins <ul><li>Former Vice President of Enron Corporation </li></ul><ul><li>Alerted then-CEO Ken Lay in August 20...
Cynthia Cooper <ul><li>WorldCom’s Director of Internal Audit </li></ul><ul><li>Her team discovered $3 billion in questiona...
Case Study:  Challenger <ul><li>January 28, 1986 </li></ul><ul><li>Space Shuttle Challenger </li></ul><ul><li>exploded 72 ...
Challenger:  What Went Wrong <ul><li>Explosion caused by O-ring failure between segments of the booster rockets. </li></ul...
Challenger:  Major Players <ul><li>Roger Boisjoly, seal specialist at Thiokol </li></ul><ul><ul><li>Directed task force fo...
Challenger:  Timeline <ul><li>July 31, 1985 </li></ul><ul><ul><li>Boisioly wrote a memo saying, “it is my honest and very ...
Challenger:  Timeline  <ul><li>January 27, 1986, the day before lift-off </li></ul><ul><ul><li>McDonald was worried about ...
Challenger:  The Explosion <ul><li>O-rings partially failed on ignition (picture) </li></ul><ul><li>Melted metal sealed th...
Challenger:  Timeline <ul><li>After the explosion </li></ul><ul><ul><li>McDonald </li></ul></ul><ul><ul><ul><li>Went publi...
Challenger:  Questions <ul><li>What effects did Boisjoly and McDonald face when they blew the whistle? </li></ul><ul><li>W...
THANK YOU
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  • Whistleblowingfinal.....

    1. 1. WHISTLEBLOWING &quot;Our lives begin to end the day we become silent about things that matter.&quot; -Martin Luther King, Jr.
    2. 2. Overview <ul><li>What is Whistleblowing? </li></ul><ul><li>Reactions </li></ul><ul><li>Laws Protecting whistle Blowing </li></ul><ul><li>How to blow the whistle? </li></ul><ul><li>Risks </li></ul><ul><li>Statistics </li></ul><ul><li>Ethical Dilemma </li></ul><ul><li>Case Study: Challenger Disaster </li></ul><ul><li>2002: The Year of the Whistleblower </li></ul>
    3. 3. What is Whistleblowing? <ul><li>Whistleblowing is… </li></ul><ul><ul><li>'raising concerns about misconduct within an organization or within an independent structure associated with it' </li></ul></ul><ul><ul><li>(Nolan Committee on Standards in Public Life) </li></ul></ul><ul><ul><li>'bringing an activity to a sharp conclusion as if by the blast of a whistle' </li></ul></ul><ul><ul><li>(Oxford English Dictionary) </li></ul></ul><ul><ul><li>'giving information (usually to the authorities) about illegal and underhand practices‘ </li></ul></ul><ul><ul><li>(Chambers Dictionary) </li></ul></ul>
    4. 4. TYPES OF WHISTLE-BLOWING <ul><li>Internal whistleblowing: who report misconduct to a fellow employee or superior within their company. </li></ul><ul><li>External whistleblowing: report misconduct to outside persons or entities. </li></ul>
    5. 5. REACTIONS <ul><li>Selfless Martyrs v/s Snitches </li></ul><ul><li>IMPACT: </li></ul><ul><li>Termination </li></ul><ul><li>Demotions </li></ul><ul><li>Mistreatment </li></ul><ul><li>No Future Promotions </li></ul>
    6. 6. LAWS PROTECTING WHISTLEBLOWERS <ul><li>Federal Whistleblower Protect Act 1989 </li></ul><ul><li>Federal False Claims Act </li></ul><ul><li>State Laws </li></ul><ul><li>Whistleblower Protection Act of 2007 </li></ul>
    7. 7. WHISTLEBLOWER WEEK IN WASHINGTON <ul><li>The week of May 13-19 2007, whistleblowers from all over the country gathered in Washington, D.C., to convince the United States Congress to pass stronger whistleblower protections for both government and private sector workers. </li></ul><ul><li>During WWW dozens of nonprofit organizations, whistleblower groups and individual whistleblowers participated in a broad range of activities that included discussion panels, testimony, award ceremonies, a film night and book signing, and workshops in advocacy, stress management, whistleblower law, and mentoring. </li></ul>
    8. 8. What to think about <ul><li>The “mom” test: </li></ul><ul><ul><ul><li>“I’m going to be in this industry a long time. Will this damage my reputation with my boss, colleagues, future customers or employers?” </li></ul></ul></ul><ul><li>The personal responsibility test: </li></ul><ul><ul><ul><li>Weigh personal obligations to family and etc. that can only be met if you have an income. </li></ul></ul></ul><ul><ul><ul><li>“Will harm avoided by greater than harm incurred?” </li></ul></ul></ul>
    9. 9. How to Blow the Whistle <ul><li>Do it anonymously </li></ul><ul><ul><ul><li>let the evidence speak for itself and protect yourself if possible </li></ul></ul></ul><ul><li>Do it in a group </li></ul><ul><ul><ul><li>charges have more weight and won’t seem like a personal vendetta. </li></ul></ul></ul><ul><li>Present just the evidence </li></ul><ul><ul><ul><li>leave interpretation of facts to others. </li></ul></ul></ul><ul><li>Work through internal channels </li></ul><ul><ul><ul><li>start with your immediate supervisor or follow the standard reporting procedure </li></ul></ul></ul><ul><li>Work through external channels </li></ul><ul><ul><ul><li>go public (biggest risk) </li></ul></ul></ul>
    10. 10. Risks of Whistleblowing <ul><li>WB rarely works out well for the whistleblower </li></ul><ul><ul><ul><li>Viewed as a “rat” who ratted out the company </li></ul></ul></ul><ul><ul><ul><li>Resented by coworkers </li></ul></ul></ul><ul><ul><ul><li>Serious contemplation of job change or personal problematic activity (drinking, drugs, self-destructive behavior) </li></ul></ul></ul><ul><ul><ul><li>Depends on the organization for a job, the job makes money, the family needs money to survive </li></ul></ul></ul>
    11. 11. Statistics <ul><li>Polling Group: </li></ul><ul><ul><ul><li>233 individuals polled, 40% responded </li></ul></ul></ul><ul><ul><ul><li>Average age: 47 </li></ul></ul></ul><ul><ul><ul><li>Employed for 6.5 years at job </li></ul></ul></ul><ul><ul><ul><li>Almost all lost job </li></ul></ul></ul>
    12. 12. Statistics <ul><li>Negative Effects: </li></ul><ul><ul><ul><li>51% of Govt employees lost their job </li></ul></ul></ul><ul><ul><ul><li>82% harassed by superiors </li></ul></ul></ul><ul><ul><ul><li>69% watched closely after blowing the whistle </li></ul></ul></ul><ul><ul><ul><li>63% lost job responsibilities </li></ul></ul></ul><ul><ul><ul><li>60% fired </li></ul></ul></ul><ul><ul><ul><li>10% attempted suicide </li></ul></ul></ul><ul><li>Positive Effects: </li></ul><ul><ul><ul><li>20% felt their actions resulted in positive changes </li></ul></ul></ul><ul><ul><ul><li>More than 50% (of responders) would do it again </li></ul></ul></ul>
    13. 13. Ethical Dilemma <ul><li>The Mum Effect --reluctance to blow the whistle </li></ul><ul><li>The Deaf Effect --reluctance to hear the whistle </li></ul><ul><ul><ul><li>“ I wrote lots of reports. I escalated things as much as I could, but in the end, they said, ‘We really appreciate your efforts, but thanks, but no thanks’” </li></ul></ul></ul><ul><li>The Blind Effect --reluctance to see the need to blow the whistle </li></ul><ul><ul><ul><li>Established audit functions do not operate effectively because they try to conceal the information from management </li></ul></ul></ul>
    14. 14. 2002: Year of the Whistleblower Cynthia Cooper WorldCom Coleen Rowley FBI Sherron Watkins Enron
    15. 15. Sherron Watkins <ul><li>Former Vice President of Enron Corporation </li></ul><ul><li>Alerted then-CEO Ken Lay in August 2001 to accounting irregularities within the company </li></ul><ul><li>Warned that Enron 'might implode in a wave of accounting scandals.' </li></ul><ul><li>Testified before Congressional Committees from the House and Senate investigating Enron's demise. </li></ul><ul><li>Lauded in the press for her courageous actions, but left her job at Enron after a few months when she wasn't given much to do </li></ul>
    16. 16. Cynthia Cooper <ul><li>WorldCom’s Director of Internal Audit </li></ul><ul><li>Her team discovered $3 billion in questionable expenses </li></ul><ul><li>Met with 4 executives to track down and explain the undocumented expenses </li></ul><ul><li>Disclosed findings, WorldCom stock frozen, corporate credit rating went from B+ to CCC- </li></ul><ul><li>Remained as VP of Internal Audit, not promoted, no gratitude, resented by employees </li></ul>
    17. 17. Case Study: Challenger <ul><li>January 28, 1986 </li></ul><ul><li>Space Shuttle Challenger </li></ul><ul><li>exploded 72 seconds into </li></ul><ul><li>its flight, killing all 7 crew </li></ul><ul><li>members. The flight received much media </li></ul><ul><li>attention because a teacher, Christa </li></ul><ul><li>McAuliffe, was on board. </li></ul>
    18. 18. Challenger: What Went Wrong <ul><li>Explosion caused by O-ring failure between segments of the booster rockets. </li></ul><ul><li>Several employees of the manufacturer, Thiokol, had been aware of the O-ring deficiencies. </li></ul><ul><li>No one listened to the engineers who knew about the problem </li></ul>
    19. 19. Challenger: Major Players <ul><li>Roger Boisjoly, seal specialist at Thiokol </li></ul><ul><ul><li>Directed task force for a year to study the evidence that hot gases eroded O-rings </li></ul></ul><ul><li>Allan McDonald, manager of solid-rocket motor program </li></ul><ul><li>Larry Mulloy, NASA official, manager of booster programs </li></ul><ul><li>George Hardy, NASA official </li></ul>
    20. 20. Challenger: Timeline <ul><li>July 31, 1985 </li></ul><ul><ul><li>Boisioly wrote a memo saying, “it is my honest and very real fear that if we do not take immediate action to solve the problem [the company could] stand in jeopardy of losing a flight.” </li></ul></ul><ul><ul><li>No conclusive evidence to back up memo </li></ul></ul>
    21. 21. Challenger: Timeline <ul><li>January 27, 1986, the day before lift-off </li></ul><ul><ul><li>McDonald was worried about temperatures dropping to 22 degrees overnight. </li></ul></ul><ul><ul><li>14 engineers “fought like hell” to get permission to present to NASA </li></ul></ul><ul><ul><li>All 14 Thiokol engineers recommended postponing the launch </li></ul></ul><ul><ul><li>Mulloy and Hardy challenged the recommendation </li></ul></ul><ul><ul><ul><li>Mulloy: “When do you want me to launch, next April?” </li></ul></ul></ul><ul><ul><ul><li>Hardy: recommendation “appalled” him </li></ul></ul></ul><ul><ul><ul><li>Thiokol: Management reversed the recommendation for postponement </li></ul></ul></ul><ul><ul><ul><li>What kind of dilemma was Thiokol forced into? </li></ul></ul></ul>
    22. 22. Challenger: The Explosion <ul><li>O-rings partially failed on ignition (picture) </li></ul><ul><li>Melted metal sealed the gap </li></ul><ul><li>Hit a wind shear, causing the booster to flex and the seal to dislodge </li></ul><ul><li>Loss of cabin pressure </li></ul><ul><li>Flames led to explosion </li></ul>
    23. 23. Challenger: Timeline <ul><li>After the explosion </li></ul><ul><ul><li>McDonald </li></ul></ul><ul><ul><ul><li>Went public </li></ul></ul></ul><ul><ul><ul><li>Demoted by management </li></ul></ul></ul><ul><ul><ul><li>Public outcry and Congressional investigation led to a reversal of that decision and a promotion instead </li></ul></ul></ul><ul><ul><ul><li>Became spokesman for Thiokol and new rocket boosters </li></ul></ul></ul><ul><ul><li>Boisjoly </li></ul></ul><ul><ul><ul><li>“ I hope and pray that I have not risked my job and family security by being honest in my conviction” </li></ul></ul></ul><ul><ul><ul><li>Never worked on a shuttle again because it was too painful </li></ul></ul></ul><ul><ul><ul><li>Wondered if there was more he could have done, even though the record shows he minced no words </li></ul></ul></ul><ul><ul><ul><li>Reassigned by management with altered responsibilities </li></ul></ul></ul><ul><ul><ul><li>Took leave of absence, a year later went on disability </li></ul></ul></ul>
    24. 24. Challenger: Questions <ul><li>What effects did Boisjoly and McDonald face when they blew the whistle? </li></ul><ul><li>Why did NASA not listen to the engineers? </li></ul><ul><li>Why did Thiokol to reverse its decision even though they knew it was incorrect? </li></ul><ul><li>Would you have blown the whistle differently than Boisjoly and McDonald? If so, how? </li></ul><ul><li>Did McDonald go public at the right time? </li></ul>
    25. 25. THANK YOU

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