By: Juan, Princess Sañata & Sonico, Maricel N.
Divine Word College of Laoag
Abstract:
Whistleblowing
serves a vital function in promoting more transparent and accountable
organizations by unveiling illegal and unethical practices. This paper explores
the complex concept of whistleblowing, navigating not just the protection laws
on a national and international level but also the personal and professional
challenges that potential whistleblowers may face or the dilemmas that come
with speaking up. It assesses the current whistleblower protection laws, such
as the US Whistleblower Protection Act, the Dodd-Frank Act, and the European
Union’s Whistleblower Protection Directive, while presenting also that these
protections are not always effective since whistleblowers still face ethical
dilemmas and challenges such as retaliation and emotional distress.
In
today’s modern era, social media and technology shaped the changes in the way
whistleblowing can be exposed to the public, however, it imposed a risk to
privacy and security. The paper also emphasizes the terrible reality that
whistleblowers may face including being isolated from the rest of the group or
subjected to reprisals, which shows that these practices can affect
organizational ethics and public trust. To build a supportive
environment and a culture where whistleblowers feel safe, the paper provides
actionable recommendations in response to these challenges, including
strengthening compliance programs and ethics training. Finally, it advocates
for continuous legal reform, better implementation of existing protection laws,
and cultural changes to guarantee that whistleblowing continues to be an
effective weapon against corruption and promotes ethical behaviour in society.
Keywords:
whistleblowing,
legal protection, egoism, deontology, utilitarianism, organizational culture,
retaliation, compliance, and ethics programs
Introduction
Our actions lead to consequences greater than ourselves
that affect our health, safety, economic, and human rights. When it comes to
corruption, its greatest prevention is revealing the truth. Unfortunately, not
all the time employees are left to do the right thing due to a significant risk.
In 2015, Sustainable Development Goal 16, “Peace, Justice
and Strong Institutions” introduced by the United Nations played a significant
function in streamlining whistleblowing as an instrument in promoting
transparency (Høedt-Rasmussen and Voorhoof 2018). In line with the mission of
SDG 16, it recognizes whistleblowing in curbing corruption (Sørensen et al.
2020) through elevated reporting of illegal, dangerous, or unethical actions
within both government and private sectors. Whistleblowing has contributed to
bettering organizational culture by preventing or uncovering errors and
accidents (Banisar, 2011), and strategy for boosting the effectiveness and
sustainability of organizations (Önder et al. 2019). However, despite the
initiatives and protection, when it all comes down to a real situation, the
company is more in an advantageous position than the whistleblower. In
addition, instead of feeling empowered, mishandled cases of whistleblowing
further diminish the conviction of blowing the whistle.
Definition
and Concepts of Whistleblowing
Whistleblowing encompasses a variety of aspects. According
to Near, J.P. and Miceli, M.P. (1985), whistle-blowing refers to the act of an
existing or former member of an organization discovering an illegal, unethical,
or irregular behaviour in an organization and whistle-blowing to an individual
or organization that may affect the behaviour. On the other hand, US consumer activist
Ralph Nader (1971) described it as “An act of a man or woman who, believing
that the public interest overrides the interest of the organization he serves,
blows the whistle that the organization is involved in corrupt, illegal,
fraudulent or harmful activity.” Similarly, Duska
et al. (2011) defines whistleblowing as “the practice in which employees who
know that their company or colleague is engaged in activities that: cause
unnecessary harm; violate human rights; are illegal; run counter to the defined
purpose of the instructions or the professions; are otherwise immoral informs
superiors, professional organizations, the public, or some government agency of
these activities”. Other academics like author Peter Jubb have
focused on whistleblowing as mostly an element of free speech and the right of
individuals to express dissent. According to him, it is a necessary public
action that involves deliberate and voluntary disclosure. He also added that it
is an act by someone with current or former privileged access to an
organization’s data or information, addressing significant illegal activities
or other misconduct—whether real, suspected, or anticipated—that the
organization controls. This disclosure is made to an external entity capable of
addressing the issue. In that sense, whistleblowing involves negative or
sensitive information regarding potential misconduct in an organization (Lazar,
2022; Skivenes & Trygstad, 2010) which is why individuals who have a potential
role in uncovering organizational fraud (Dyck et al., 2010) are hesitant due to
the high risk it comes within the responsibility (Lee & Fargher, 2018;
Mesmer-Magnus & Viswesvaran, 2005).
Upon presenting themselves, whistleblowers are
confronted with unfair treatment and termination from companies. Regulators
intervene by enforcing laws to minimize these risks and protect whistleblowers.
In the Philippine setting, the Whistleblower Protection Act of 2019
acknowledges whistleblowers play a vital role in reporting improper conduct
within public offices, thereby aiding in the fight against corruption and
ensuring high standards of integrity. The proposed measure aims to enhance the
protection, security, and benefits for whistleblowers who are admitted into a
designated whistleblower protection program managed by the Whistleblower
Benefits and Protection Council. Even though the legal framework of the
policy continuously evolves and strengthens to protect whistleblowers, there are
gaps and the effectiveness of these protections can vary greatly. Such
protection must be meaningful and incorporated into organizational structures
and policies (Fotaki, 2016). Some scholars believe that whistleblower
protection law cannot be truly effective. For example, Martin (2003) argued that
whistleblower legislation is often ineffective and can even create an illusion
of protection that is dangerous for whistleblowers. He proposed that
whistleblowers should focus on acquiring practical skills such as grasping
organizational dynamics, gathering data, writing clear reports, forming
alliances, and engaging with the media, rather than depending solely on
official procedures, legal frameworks, or ombudspersons. He contended that
these skills are central to the effectiveness of official procedures.
Encouraging the development of these skills could be a more effective approach
to empowering and safeguarding whistleblowers (Martin, 2003). This statement
further emphasizes the heavy responsibility of the whistleblowers- this
requirement adds to the individual’s burden, making the process of whistleblowing
more daunting and intimidating that leading to discouragement in coming
forward.
The landscape for whistleblowers has evolved
significantly over recent decades, influenced by various societal changes. Today,
various web-based platforms are developed as way to deal with the challenges of
whistleblowing. This technology is intended to improve the accessibility of the
channels, confidentiality and anonymity protection, as well as report
management. The existence of social media also contributed to whistleblowing
practices, which some scholars refer to as virtual whistleblowing (Lam &
Harcourt, 2019; Latan et al., 2021; Lazar, 2022). With internet technology and
social media, any stakeholders (including employees) can share negative or
sensitive information about companies online—and even anonymously—through
employee review websites. Still, it is a double-edged sword, while it offers anonymity and reach, it can also potentially
compromise security and privacy.
In the past, whistleblowing was associated with
the concept of gaining information on revolutionary movements or political
activities. Consequently, in some countries, the concept of reporting
misconduct has become associated with negative connotations such as in the Czech
Republic, Ireland, Romania, and Slovakia, “whistleblower” is associated with
being an informant. In Bulgaria and Italy, it’s associated with being
a traitor or spy while in Hungary, Latvia, Estonia, and
Lithuania, it’s associated with being a snitch.
Therefore,
the mistrust of whistleblowers is a learned behaviour passed down from families
and communities which leads to the stigma of speaking up is life-threatening,
and it’s safer to stay quiet. Ultimately,
the historic feeling that making a report even if it’s to report wrongdoing is
“wrong” could contribute to fewer people blowing the whistle in these countries.
Without widespread support for the
idea that blowing the whistle is the correct course of action, many potential
whistleblowers feel pressured to stay quiet. Therefore, corruption
goes unchecked for longer, often putting people at risk.
Theoretical Frameworks
Whistleblowing involves exposing
unethical or illegal activities within an organization. According to Duska et al. (2011), when it comes to Egoism,
individuals always act in their self-interest. This suggests that the decision
to blow the whistle depends on what they can gain-- such as career advancement,
recognition, incentives, etc. Conversely, if the action does not offer personal
gain, there is no motivation to blow the whistle. For this reason, Egoism is
generally rejected often because it promotes selfishness and disregard for
others' welfare. On the other hand, Duska et al. (2011), also argued that
recent mindset research has shown that self-interest and concern for the self are
not entirely bad but it is worse when certain individuals start pushing their goals
at the grief of another. However, egoists contend that if one does not look out
for the self, who will? Therefore, the very nature of egoism undermines the
moral and professional values typically associated with whistleblowing when it
should be done in honour of the profession in the first place and not for
self-advancement. Duska et al. (2011) state that even though professionals may
not concur, there are times when they will be obliged to expose unethical
secrets.
Utilitarianism is an ethical approach
that advocates the greatest good for the greatest number (Mill, 1863). He
advocated that an action that brings about more good consequences is viable
while an action that brings about bad consequences is harmful. (Duska et al.,
2011). Therefore, if exposing wrongdoing prevents harm, protects public
interest, or promotes justice, then the act of whistleblowing can be seen as
morally right. This makes whistleblowing fits into the utilitarian framework of
ethics because it is grounded on the consideration of the larger society and
the greater good over the potential harm or discomfort experienced by a few
individuals or organization
Deontology is based on the
belief that if one acts to fulfil his desires then they are not acting out of a
moral motive. There are two formulas Immanuel Kant articulated based on the
principle of this theory. The first formula is that one should “act so that you
can will the maxim of your action to become a universal law”. Therefore,
whistleblowing is valid under the ethics of deontology if one wants it to be universally
accepted as a moral act. The second formula is to “act to never be to treat
another rational being merely as a means”. In the context of whistleblowing, by
bringing to light the practices that harm individuals or the public, the
whistleblower respects the dignity and rights of those affected by the
unethical behaviour—unlike in egoism wherein the main concern is themselves or
utilitarianism which centres on outcomes.
Legal
Protections for Whistleblowers
Whistleblower
protection legislation aims to shield people from retaliation when they reveal
illegal, unethical, or improper activity within corporations. These laws encourage
the reporting of misconduct by providing legal protection to whistleblowers.
Such protections' scope, effectiveness, and enforcement vary significantly
across countries and regions. Here is an overview of some of the National and
International laws in place to protect whistleblowers.
National
Whistleblower Protection Laws
The
most advanced procedures for protecting whistleblowers are found in the United
States. This includes the "Whistleblower Protection Act of 1989,"
which shields federal workers who provide information that demonstrates legal
infractions, flagrant financial mismanagement, hazards to public health and
safety, or other miscellaneous misconduct. Retaliation in the form of
termination, demotion, or other unfavourable job measures is prohibited. Another
is the "Dodd-Frank Act" which protects people from retribution and
offers incentives to expose financial wrongdoing, including violations of
securities laws. Anonymous reporting of infractions is permitted, and
whistleblowers may be compensated with up to 30% of the fines obtained through
legal action.
The
"Whistleblower Protection Directive" of the European Union ensures
that whistleblowers have access to efficient mechanisms for reporting
violations of regulations confidentially, both internally and externally. And
these reports are appropriately looked into and handled by the concerned
authorities and organizations. Whistleblowers are also protected against all
forms of retaliation.
The
United Kingdom’s "Public Interest Disclosure Act of 1998" protects
workers from detrimental treatment or victimization from their employer if, in
the public interest, they blow the whistle on wrongdoing such as breach of
legal obligation, danger to the health and safety of any individual, and damage
to the environment. The Act protects most workers in the public, private, and
voluntary sectors.
International
Whistleblower Protection Laws
In
Article 33 Protection of Reporting Persons of the “United Nations Convention
Against Corruption,” each State Party shall consider incorporating into its
domestic legal system appropriate measures to provide protection against any
unjustified treatment for any person who reports in good faith and on
reasonable grounds to the competent authorities any facts concerning offences
established following this Convention.
The
“Council of Europe’s Recommendation CM/Rec(2014)7” has developed a legal
instrument for protecting individuals who report or disclose information on
acts and omissions in the workplace that represent a serious threat or harm to
the public interest. The report analyses whistleblower protection frameworks in
Council of Europe member states since the adoption of the Recommendation
CM/Rec(2014)7 and identifies good practices and positive developments.
The
“G20 Anti-Corruption Working Group” established the High-Level Principles for
the Effective Protection of Whistleblowers. These principles intend to
establish, modify, or strengthen protection frameworks, legislation, and
policies for whistleblowers and are intended to complement existing
anti-corruption commitments and not weaken or replace them. The High-Level
Principles offer flexibility to enable countries to apply them by their respective legal traditions effectively. The principles can also
guide those responsible for setting up and operating protection frameworks for
whistleblowers in the public and private sectors.
These
laws were designed to make whistleblowers feel safe and protect them from
reprisals. However, its effectiveness may vary from different locations. The
Whistleblower Protection Act and Dodd-Frank Act have been effective in the
United States to expose wrongdoing, especially in the federal government. With
the financial incentives offered by the Dodd-Frank Act, numerous whistleblowers
have disclosed financial fraud. In Europe, the Whistleblower Protection
Directive united the member states in protecting the whistleblowers. By
creating a way for people to report issues internally, it has helped make
things safer for whistleblowers. The Public Interest Disclosure Act in the UK
has led to more whistleblowers stepping forward, particularly in both the public
and private sectors.
Certainly,
whistleblower protection laws have come a long way in promoting transparency
and accountability but there is still much room for improvement. The extent of
their effectiveness lies mostly on the strength with which these laws are
enforced and their acceptance culturally as well as in how much legal
protections different sectors get. Continued uniformity in the adoption of
international practice and limitations around resources for protecting
whistleblowers are ongoing challenges. Further legal reform, enhanced
enforcement, and a shift away from the stigmatization of whistleblowing are
necessary to make these laws more effective worldwide.
Challenges
faced by the Whistleblowers
As
an employee of any organization or company, you are expected to become loyal to
the company at all times, that is why whistleblowing has been a pressing issue
inside and outside the organization when one commits this act specifically to
your employer. And as a result of that action, whistleblowers often face
different challenges.
One common challenge is Retaliation, your employer might take revenge and fire you, harass you, or demote you from your current position in the company. However, since retaliation is illegal with all the whistleblower protection laws on hand, you can ask for legal advice from lawyers and fight for your rights. Another is that you may go through Emotional Distress. As a result of revealing your employer’s misdeeds, you may face criticism and discrimination from your employer and colleagues and this could result in panic attacks and depression on your part. Next, since the whistleblowing process is often too lengthy to be proven in court, this may become tough for you as you pay for expenses such as hiring a lawyer and attending court hearings and this might become harder on your part if your employer chooses to fire or terminate you. Whistleblowing also compromises trust since the company prefers if issues and concerns are addressed internally thus creating harmony and good relationships among employers, employees, and the staff. Another is the possibility of getting an unfavorable judgment on the wrongdoing you have filed against your employer. If you can keep up with the legal technicalities that the court may require you and if you could provide strong evidence to prove your claim. It might also become challenging for you to get employed in other organizations once they happen to know your background as a whistleblower in your previous company. Lastly, you may also experience gender-based discrimination especially if you’re a female whistleblower. This will cause you greater criticism for your actions. So, it would be best to contact first a whistleblower lawyer before coming out.
Organizational
and Societal Impacts
Despite the encouragement and
transparent communication regarding whistleblowing in organizations, once the
deed of disclosing information on wrongdoings is executed, whistleblowers are
isolated as being the “troublemakers” as their colleagues and superiors become
progressively less friendly (Rothschild, 2008). In such a way, whistleblowing
is perceived as a form of betrayal that leads to retaliation by the
organization (Uys, 2008). Organizations maltreat whistleblowers through
work-related retaliations such as blacklisting, constructive dismissal,
transfers to another section, personal harassment, character assassination, and
the implementation of disciplinary proceedings discrediting the employee
(Glazer & Glazer 1989; Gummer 1985; Hunt 1995; Mesmer‐Magnus & Viswesvaran 2005; Rothschild &
Miethe 1994). These companies are the same organizations that advertise
themselves with good values and ethics but dispute their principles. What makes
it worse is that retaliation frequently takes place faster than protection,
which places the employer at a strategic advantage (De Maria (2006). Miceli et
al (2008) developed a model to understand the reason why organizations would
retaliate against a whistleblower and provided insights on the constructive ways of
facilitating whistleblowing by creating an organizational culture that
discourages retaliation. He emphasized that it has something to do with
compliance that strongly discourages wrongdoings which reduces the need for
whistleblowing. This creates a perception of a receptive attitude toward
dealing with complaints, thereby minimizing the likelihood of reprisals. If
important values are not being shared by employees, it implies the
organizational culture is weak and ethics are easily compromised (Dorasamy
& Pillay, 2011). On the other hand, it could also be argued that “emphasis
on compliance creates so much bureaucracy or over‐controls
employees that it undermines the development of ethical values, good decision
making and trust in management” (Miceli et al, 2008) but this approach can
streamline in setting dominate organizational culture leading to consistent
practice of values. This is further supported by Tsahuridu and Vanderckhove
(2008) who argued that by institutionalizing employees into the ethical culture
of the organization, the ethical autonomy of employees in the organizational
context is enhanced. Hence, the environment for potential whistleblowing is
more conducive. When values are enacted in an organization, it can be suggested
that employees are less likely to fear retaliation.
Whistleblowing
plays an important role in promoting public trust and transparency. Brown et
al. (2014) stated that the relationship between whistleblowing, transparency,
and public trust is complex and nuanced. Whistleblowing exposes any misdeeds in
an organization and is regarded as a critical instrument for transparency. A
result of the study by the authors from Australia, the UK, and International
surveys show that the public supports whistleblowing as part of transparency
reforms. However, the public’s support of whistleblowing doesn’t necessarily
mean that they don’t trust organizations, rather they see it as a corrective
action to any wrongdoings. This highlights how whistleblowing as a transparency
mechanism contributes to trust rather than as a substitute for it.
Moreover,
public whistleblowing such as to media is often seen as a last resort when
internal mechanisms fail. This serves as a warning against any wrongdoing by
organizations and helps build trust by ensuring that organizations are held
liable.
Promoting ethical behaviour in the organization
Whistleblowing
might seem ethical since you as an employee have the moral duty to report any
wrongdoing of your company. However, many employees hesitate to come out once
they discover illegal activities in their organization, partly because they
might find themselves struggling with ethical dilemmas and challenges they may
face as a whistleblowers. That is why in creating a culture of ethics and
transparency in an organization, ethics should be the top priority of a company
from the very first day, so employees know and feel at ease to come forward if
they discover something.
To
prioritize ethics, an organization can set up a compliance hotline where
employees can report misconduct anonymously. Signage where employees can see
when, where, and how to report. Another is the onboarding process of new
employees, making ethics part of their training. These could help the
organization create a culture of ethical behaviour and foster an environment
where employees feel safe coming out. If you make ethics an integral part of
your corporate culture, then there would be nothing wrong for whistleblowers to
report.
Conclusion
Whistleblowing even though when done with good intentions,
is still frowned upon due to the consequences it leads to both employee and
employer but most damage is directed to the whistleblowers extending outside
the workplace. Over the years of significant progress and advancements in legal
protection, conflicts continue to arise despite the ethical theories such as
egoism, utilitarianism, and deontology providing insight and justifications
making it difficult to apply due to complex actual circumstances.
Legal frameworks have made notable strides in
safeguarding whistleblowers. However, not every whistleblowing case is handled
effectively since it varies widely; gaps in enforcement are also a hindrance
and cultural acceptance persists. The challenge of retaliation and the stigma
associated with whistleblowing implies the need for stronger and universally
applied protection measures.
To truly foster an environment where whistleblowing can
thrive as a tool for ethical oversight, organizations must go beyond mere
compliance. Organizations must live up to their core values of embedding a culture
of ethics in their workplace, providing clear and confidential reporting
mechanisms, and supporting whistleblowers through effective legal and
organizational frameworks. In addition, corporate practices should incorporate
education and training on ethical behaviour, ensuring that employees are both empowered
and protected when reporting wrongdoing, without the fear of retaliation.
Ultimately, to achieve an organizational culture that promotes transparency and accountability, effort must come from all the stakeholders including policymakers, corporate leaders, and the public. By addressing the underlying issues that undermine whistleblower protections and embracing a proactive approach to ethics, organizations can protect the integrity of their operations and contribute to the broader fight against corruption.
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