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1. 1
Chapter 7
Blowing the Whistle

2. Contents
I. Review of Previous Lesson
II. Lesson Objectives
III. Introduction
IV.New Lesson
V. Summary
VI.Key Terms
VII.Discussion Questions
VIII.Homework / Journal Writing

3. I. Review of Previous Lesson
- What is the meaning of corporate
governance?
- What are the responsibilities of the board
of directors and the major governance
committees?

4. II. Lesson Objectives
1. Identify the five key pieces of U.S. legislation designed to
discourage, if not prevent, illegal conduct within organizations.
2. Understand the purpose and significance of the Foreign
Corrupt Practices Act (FCPA ).
3. Calculate monetary fines under the three-step process of the
U.S. Federal Sentencing Guidelines for Organizations (FSGO).
4. Compare and contrast the relative advantages and
disadvantages of the Sarbanes-Oxley Act (SOX).
5. Explain the key provisions of the Dodd-Frank Wall Street
Reform and Consumer Protection ct.

5. II. INTRODUCTION
“The word whistleblower suggests that you’re
a tattletale or that you’re somehow disloyal…
But I wasn’t disloyal in the least bit. People
were dying. I was loyal to a higher order of
ethical responsibility.”
Dr. Jeffrey Wigand, ‘The Insider’

6. What is Whistle-Blowing?
អ្នកផ្តល់ព័ត៌មានWhistleblower
• និយោជិតដែលរកយ ើញការប្រប្ពឹតតិខុសររស់ប្ក ុមហុន យហើយយប្ជើស
យរ ើសនាំយកវាយៅឱ្យអ្នកែទៃចារ់អារមមណ៍ An employee who
discovers corporate misconduct and chooses to bring it to the attention
of others.
ការផ្តល់ពត៌មានខាងក
ន ុងInternal Whistle-blowing
• យៅយពលដែលនិយោជិតមា
ន ក់រកយ ើញការប្រប្ពឹតតិខុសររស់ប្ក ុមហុន
យហើយនាំយកវាយៅឱ្យអ្នកប្ររ់ប្រងររស់គាត់ ដែលរន
ា រ់មកអ្នុ
វតតតាមនីតិវ ិធ
ី ដែលបានរយងកើតយ ើងយែើមបីយ ោះប្ាយការប្រប្ពឹតត
ខុសយៅក
ន ុងអ្ងគភាពWhen an employee discovers corporate
misconduct and brings it to the attention of his supervisor, who then
follows established procedures to address the misconduct within the
organization.

7. What is Whistle-Blowing?
• ការផ្តល់ពត៌មានខាងយប្ៅ
External Whistle-blowing
យៅយពលដែលនិយោជិត រកយ ើញការប្រប្ពឹតតិខុស
ប្ក ុមហុន យហើយយប្ជើសយរ ើសនាំយកវាយៅឱ្យភា
ន ក់ងារអ្នុវតត
ច្បារ់ និង/ឬប្រព័នធផ្សពវផ្ាយ
When an employee
discovers corporate
misconduct and chooses
to bring it to the attention
of law enforcement agencies and/or the media.

8. When is Whistle-Blowing Ethical?
Ethical whistle-blowing must meet 5 conditions:
1. យៅយពលដែលប្ក ុមហុន តាមរយៈផ្លិតផ្ល ឬការសយប្មច្បច្បិតតនឹងរងកយប្គាោះថ្ន
ន ក់ធងន់ធងរ
និងសនធឹកសន
ធ រ់ែល់ាធារណជន (ក
ន ុងនមជាអ្នកយប្រើប្បាស់ ឬអ្នកឈរយមើល) ឬ
រាំពានច្បារ
់ ដែលមានប្ារ់ និយោជិតរួរដតរាយការណ៍យៅា
ា រ័ន
When the company, through a product or decision, will cause serious and
considerable harm to the public (as consumers or bystanders), or break existing
laws, the employee should report the organization.
2. យៅយពលនិយោជិតកាំណត់អ្តតសញ្ញ
ា ណការរាំរាមក
ាំ ដហងធងន់ធងរទនយប្គាោះថ្ន
ន ក់ គាត់រួរដត
រាយការណ៍ពីវា យហើយរញ្ញ
ា ក់ពីកងវល់ខាងសីលធម៌ររស់គាត់ When the employee
a serious threat of harm, he or she should report it and state his or her moral concern.
3. យៅយពលដែលអ្នកប្ររ់ប្រងភា
ា មៗររស់និយោជិតមិនយធវើសកមមភាព និយោជិតរួរដត
ហត់យនឿយនូវនីតិវ ិធីទផ្ាក
ន ុង និងដខសសងា
វ ក់រញ្ញ
ា យៅកាន់ប្ក ុមប្រឹកាបិបាល When the
employee’s immediate supervisor does not act, the employee should exhaust the
procedures and chain of command to the board of directors.

9. When is Whistle-Blowing Ethical?
• និយោជិតប្តូវដតមានឯការបស
ត ុតាង
ដែលរញ
្ ុ ោះរញ
្ ូលអ្នកសយងកតការណ៍សម
យហតុផ្ល យ យមិនលាំយអ្ៀងថ្ន ៃសសនៈ
ររស់គាត់ច្បាំយពាោះា
ា នភាពរឺប្តឹមប្តូវ
និងបស
ត ុតាងដែលថ្នការអ្នុវតត
ផ្លិតផ្ល ឬយគាលនយោបាយររស់
ប្ក ុមហុនរាំរាមក
ាំ ដហងោ
៉ា ងធងន់ធងរ និង
រងកយប្គាោះថ្ន
ន ក់ែល់ាធារណជន ឬអ្នក
យប្រើប្បាស់ផ្លិតផ្ល។
• 5. និយោជិតប្តូវដតមានយហតុផ្លប្តឹម
ប្តូវយែើមបីយជឿថ្នការលាតប្ត ងអ្ាំយពើ
ខុសឆ្គងជាាធារណៈនឹងនាំឱ្យមាន
ការផ្ល
ា ស់រ
ត ូ
រចាាំបាច្ប់យែើមបីយ ោះប្ាយ
ា
ា នការណ៍។
4. The employee must have
documented evidence that is
convincing to a reasonable,
impartial observer that his or her
view of the situation is accurate,
and evidence that the firm’s
practice, product or policy
seriously threatens and puts in
danger the public or product
user.
5. The employee must have valid
reasons to believe that revealing
the wrongdoing to the public will
result in the changes necessary
to remedy the situation.

10. When is Whistle-Blowing Unethical?
• Whistle-blowing must be questioned if:
– Motivation is the opportunity for financial
gain or media attention
– Employee is carrying out a vendetta against
the company
• Key point – better be very sure of your facts
and your evidence better be irrefutable before
blowing the whistle

11. Qui Tam Lawsuits
• A lawsuit brought on behalf of the
federal government by a whistle-blower
under the False
Claims Act of 1863

12. The Year of the Whistle-Blower
- Sherron Watkins
- Coleen Rowley
- Cynthia Cooper

13. The Duty to Respond
• មុនឆ្
ន ាំ 2002 - ការការពារផ្
ល ូវច្បារ់សប្មារ់
អ្នកផ្តល់ព័ត៌មាន មានដតតាមរយៈច្បារ់
រ៉ាុយ្
ណ ោះ។Prior to 2002 – legal protection for
whistle-blowers existed only through legislation
• ច្បារ់ការពារអ្នកផ្តល់ព័ត៌មានឆ្
ន ាំ ១៩៨៩៖
The Whistleblower Protection Act of 1989:
- បានយ ោះប្ាយរញ្ញ
ា ទនការសងសឹកយលើ
រុរគលិកសហព័នធAddressed the issue of
retaliation against federal employees

14. The Whistleblower Protection Act
• កាំណត់កាលររ ិយច្បេៃែាំយណើរការជាក់លាក់ទនរ
ណ
ត ឹង
Imposed specific processing deadlines
of complaints
• ធានមិនរយញេ ញយ្
ម ោះររស់អ្នកផ្
ល ុាំកដញេ
Guaranteed anonymity of the whistle-blower
• ទាមទារការៃូទាត់ភា
ា មៗទនដផ្នក្មួយ
ទនការៃូទាត
់ ដែលមានសិៃធិយៅអ្នកផ្
ល ុាំកដញេ
Required prompt payment of any portion of
the settlement entitled to the whistle-blower

15. The Duty to Respond
• Employees who prevail in whistle-blowing
cases are entitled to damages, which may
include:
– Reinstatement to the same seniority status
– Back pay
– Interest
– All compensatory damages
to make the employee whole
– “Special damages”

16. The Duty to Respond
• Mechanisms that employers need to put in
place:
– A well-defined process to document how
such complaints are handled
– An employee hotline to file such complaints
– A prompt and thorough investigation of all
complaints
– A detailed report of all investigations

17. Whistle Blowing As a Last Resort
• Becoming a whistle-blower and taking a story
public should be last resort
• After blowing the whistle on fraud:
– 90 percent were fired or demoted
– 27 percent faced lawsuits
– 26 percent had to seek
psychiatric or physical care

18. Whistle Blowing As a Last Resort
– 25 percent suffered alcohol abuse
– 17 percent lost their homes
– 15 percent got divorced
– 10 percent attempted suicide
– 8 percent were bankrupted

19. Review Questions
1. What is a whistleblower?
2. What is internal whistle-blowing?
3. What is external whistle-blowing?
4. When is whistle-blowing ethical?
5. When is whistle-blowing unethical?

20. SUMMARY
The language on a whistle-blower’s
entitlement to all compensator damages to
make the employees whole “is not clear in
the SOX legislation. Considering the cases you
have read in this chapter, what would you
need to be made “whole”?

21. VI. Key Terms
1.External Whistle-Blowing
2.Internal Whistle-Blowing
3.Qui Tam Lawsuit
4.Whistle-Blower
5.Whistle-Blower Hotline

22. VII. Homework
• Please write a reflection on your journal book
( about what you learned in this lesson).