case willful whistel blower


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Buisness Ethics

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case willful whistel blower

  1. 1. Presented By: Kanwar Sachit Singh Kartik Kapoor Manish Jounwal
  2. 2. A whistleblower is defined as someone who exposes wrongdoing, fraud, corruption or mismanagement. • A whistleblower is a person who alleges misconduct • Most whistleblowers are Internal whistleblowers, who report misconduct to a fellow employee or superior within their company. • External whistleblowers, however, report misconduct to outside persons or entities like Media • Whistle blowing is a strong means to deter corporate wrong doing
  3. 3. • Fairway Electric is among the most reputed companies in US market for building nuclear power plants • Jim Bower, loyal employee of Fairway Electric, accidentally comes across an old Fairway report regarding a flaw in the design of the Radon II reactor • While it didn’t amount to a safety hazard, the flaw would’ve resulted in additional costs for customers
  4. 4. • Jim brings the issue to the notice of his boss Bob, who turns to the CEO Ken Deaver • Ken tells Bob to suppress the issue • Jim then takes matters into his own hand and anonymously reports the issue to the media • This results in a public outcry and damages the reputation of the company • Jim’s peers say they don’t wish to work with him • At the end there is a talk of transfer/firing Jim
  5. 5. • Clients were kept in the dark about the structural flaw even when Fairway became aware of it • The additional costs resulting from the flaw would not be borne by the company customers and the rate payers • Ken’s reaction to Jim’s discovery was to hush up the entire matter as soon as possible
  6. 6. • Ken’s priorities seemed to be focused on avoiding any short term losses and not on company values • The identity of the whistle-blower was not kept confidential and became common knowledge to everyone in the company • No attempt was made to make the situation easier for Jim, instead Ken directs Bob to transfer Jim to another division to avoid any problems
  7. 7. • Whistle blowing makes the organisation more responsible • Employees following unethical practices are caught and actions can be taken on them • Companies having sound whistle blower policy are fined much less in case of any stray event happening • Employees prefer using internal channel to highlight the problem than taking it to outside media • Increased employee satisfaction as all instances of neglect is noticed and acted upon • Helps strengthen employees as well as the customers trust
  8. 8. • Whistle blowing can often bring to light issues which are of great significance • This serves as a way to deter unethical practices by companies • At times, new laws and practices are introduced which may benefit the whole society • Having a whistleblower policy framework in place keeps an internal check on the organization
  9. 9. • Establish staff confidence that their issues will be taken seriously by management • A clear and well-communicated anti-retribution policy • Staff involvement in the development of policies relating to whistle blowing • Offering prompt and continuous responses to internal complaints • Promote organization's code of conduct • Switch from an internally operated anonymous tip hotline to one that is managed by an outside party
  10. 10. • Virtue ethics : Jim Bover • Teleological (Utilitarian) approach : Bob & Ken • Rationalizations : o “Best interest of the company” o “Not really illegal (no safety hazard)” o It is “safe” and will not be caught
  11. 11. ◦ US: Whistleblower Protection Act of 1989, Corporate and Criminal Fraud Accountability Act ◦ UK: Public Interest Disclosure Act of 1998 ◦ India:  Public Interest Disclosure (Protection of Informers) Bill, 2009 was prepared by the department of personnel and training (DoPT),  Central Agency (per Public Interest Disclosures and Protection of Informers Resolution, 2004): CVC