Whistleblowing involves employees reporting wrongdoing, such as financial mismanagement or corruption. It helps ensure transparency and integrity in financial reporting. Effective whistleblowing policies within organizations, that protect anonymous reporting and whistleblowers, can help establish strong internal controls and corporate governance. Without such policies, employees may make external whistleblowing disclosures that damage the organization.

2. Sowmya S M.com
Research Scholar-JRF-UGC-DoS in Commerce,
Manasagangotri, University of Mysore,
Mysore-6
sowgowri@yahoo.co.in
9008231522
Under the guidance of
Dr.Rajashekar M.com, Ph.D
Associate Professor, DoS in Commerce,
Manasagangotri, University of Mysore, Mysore-6
rajashekarh1@yahoo.co.in

4.  Whistle Blowing is a sign of Zero-tolerance attitude by
employees against the corruption and fraud taking place with
respect to various aspects especially financial dealings by
organizations.
 The best whistle blowing cases which made world to learn about
financial misleading by the global giant corporations were
Sherron Watkins of Enron, Coleen Rowley of the FBI and
Cynthia Cooper of WorldCom who were recognized and awarded
as persons of the year 2012 by Times magazine.
 These cases are role model lesson for each and every
organizations mainly who have reached and recognized at the
global level. These cases are negative role model lesson to
organizations and positive role model lesson to employees.

6.  Does whistle bowing of financial crime leads to
economic and social consequences. If so what kind of
economic and social consequences does organization
faces in by external whistle blowing? And what is its
impact on the stock market and what is the
shareholders reaction?

7.  (James S. Ang1993) Do you believe maximizing
shareholders' wealth is consistent with ethical
behavior? Bingham: Not only is maximizing
shareholder wealth consistent with ethical behavior,
but maximizing wealth for shareholders in the long-
term are only possible by behaving ethically. Unethical
behavior is bad business. It incurs costs and damages a
company's reputation. Both affect the bottom line.

8.  (Robert M. Bowen, Andrew C. Call and Shiva Rajgopal
2009) This empirical study revealed that whistle-blowing
allegations were characterized by unique firm-specific factors
that led employees to expose alleged financial misdeeds. Second,
on average, whistle-blowing announcements were associated
with a negative 2.8% market-adjusted five-day stock price
reaction and this reaction was especially negative for allegations
involving earnings management (-7.3%). Third, compared to a
control group that exhibits similar characteristics, firms subject
to whistle-blowing allegations were associated with further
negative consequences including earnings restatements,
shareholder lawsuits, and negative future operating and stock
return performance. Finally, whistle-blowing targets exposed by
the press were more likely to make subsequent improvements in
corporate governance.

9.  To understand the concept of whistle blowing and financial
reporting.
 To study the objectives and importance of financial
reporting as the best corporate governance practice.
 To understand the need and importance of whistle blowing
as emerging trend in financial reporting.
 To identify the key issues and challenges of whistle blowing
with respect to financial reporting.
 To suggest a model of financial reporting incorporating
whistle blowing procedures.
 To suggest suitable measures for effective financial
reporting for good corporate governance.

10.  Whistle blowing is the act of disclosing or reporting
wrong doing.
 Whistle blowing is the disclosure by a person, usually
an employee in a government agency or private
enterprise, to the public or to those in authority, of
mismanagement, corruption, illegality, or some other
wrongdoing.

12.  The main purpose of financial reporting is to disclose or provide
information about the organization’s financial happening and
transactions to all the stakeholders which helps them in their
decision making process.
 Truth and fairness is one of the prime factors to be considered
while reporting by corporate sectors.
 “LOKASAMASTA SUKINOBHAVANTU – Let all stake holders be
Happy”, when this principle has been adopted by the
organization in its dealings then such organization can have
good corporate governance practice. When truth and fairness
factor is not considered in financial reporting then it ultimately
trying to cheat the stakeholders.

13.  Anti-non disclosure is a disclosure by whistle blowing. Anti-non disclosure
elements are those elements of financial reporting, where the items to be
disclosed but not disclosed are finally alerted or made aware of disclosing by
whistle blowing allegations.
 The financial statements are prepared according to the Generally Accepted
Accounting Principles and are reported according to International Accounting
Standards and currently with IFRS (International Financial Reporting
Standards).
 When the concept of full-disclosure is not considered in financial reporting
then such concerns can be raised by the employees for partial disclosure or
non-disclosure or improper disclosure of financial aspects.
 The employees have a responsibility to report accounting and auditing
concerns and suspected fraudulent activities like incorrect financial reporting,
alleged earnings management, insider trading, tax fraud, violation of securities
regulation, falsification and destruction of business or financial records ,
misrepresentation or suppression of financial information, non-adherence to
internal financial reporting policy and auditor independence concerns etc.,

14.  Confidentiality
 Protection
 Demographic Influences:
 External Whistle Blowing:
 Whistle blowing policy:
 Whistle blowing rewards:

15. CORRECT
RECTIFIED
DOING
SAFE 
FINANCIAL
REPORTING
NOT
RECTIFIED

INCORRECT/WRONG DOING
(WHISTLE BLOWING
MECHANISM) INTERNAL EXTERNAL
CONTROL SYSTEM WHISTLE
BLOWING
NOT SAFE

16.  The organizations must have whistle blowing policy
and all employees must be made aware of such policy.
 The whistle blowing policy must assure for keeping
anonymity of whistle blowers and their protection.
 Misleading reporters must be penalized and punished.

17. An effective internal whistle blowing making
strong financial reporting system leads to good
corporate governance.
“Not late the best even now the organizations can alert
themselves of unethical behavior by having effective
whistle blowing mechanism , otherwise their
employees will alert the world about the same by
whistle blowing. Whistle blowing a dangerous alert:
Caution.”-
Sowmya.S