The History of Whistleblowing
Whistleblowing is a significant accountability tool in today’s corporate world. The practice is traceable to as early as the eighth century. However, in essence, it truly came into light when the Lincoln administration adopted the first ever whistleblowing law in 1863. Dubbed the Federal False Claims Act, the law outlawed the use of false statements in the name of blowing the whistle against an organization. In 1989, the Bush administration adopted the Whistleblowers Protection Act (1989). This law acted as a form of protection to federal whistleblowers who expose the government’s wasteful and fraudulent practices (Barnett, 1992).
The most present whistleblowing law in the US is the Sarbanes-Oxley Act (2002). The country adopted this law in response to the WorldCom and Enron scandals. The SOX Act concentrates on internal control and financial reporting requirements as a way of protecting whistleblowers (Meinert, 2014). Birley (1996) notes that whistleblowing has always been external through appropriate channels of communication such as the media or the Secretary of State. The author’s general findings concerning traditional whistleblowing are as follows. First, whistleblowers are historically low-rank employees or concerned members of the public with access to facts. Second, individuals and organizations treat whistleblowing as a measure of last resort after several unsuccessful attempts to change the status quo. Third, whistleblowers would often become victims of verbal, physical, and legal intimidation (Birley, 1996, p.49).
The Challenge of Whistleblowing Employees
Employees know that whistleblowers are subject to significant controversy. On one hand, their supporters call them honest individuals, who are willing to sacrifice careers to expose questionable organizational practices. Contrarily, critics call them out for being disgruntled individuals who use malicious accusations for their selfish personal gains. Nonetheless, the latter is often the case in the contemporary corporate world. Therefore, employees find it difficult to blow the whistle for fear of retaliation from the organization, colleagues, and members of the public. Also, they lack access to the adequate information required to qualify their accusations. Finally, whistleblowing most likely disrupts the workplace, causing serious damage both the accused and organizational health (Barnett, 1992).
The impact of Whistleblowing to the Culture of an Organization
The practice can affect the culture of an organization in two major ways. However, whistleblowing may also result in a general lack of trust in the status quo, the accused, and the whistleblower. Such an environment could become counterproductive since employees become suspicious of each other concerning organizational behaviors and policies. As a result, the company might lose its quality workforce to a competitor. This explanation is proof that whistleblowing has detrimental impacts on a company’s culture (Birley, 1996).
Contrarily, whistleblowing most definitely prompts an organization to improve its governance policies. The practice acts as a way of reminding other employees of the importance of organizational integrity. Such changes encourage the existence of ethical and legal practices. Since the enactment of the SOX Act, for instance, more company CEOs insist of strict internal finance controls and reporting techniques (Meinert, 2014). The result shows the existence of a governable corporate culture that banks on employee accountability.
The role of HR in Whistleblowing Promotion
I understand that whistleblowers go through a lot of sacrifices to blow the whistle on errant company executives. As an HR manager, I will adhere to the legal requirements that help protect employees against unlawful retaliation. I would also constitute organizational policies that help in protecting and encouraging corporate informers. Knowing that they have the freedom to report any suspicious activity is enough to bring about positive changes in the company’s operations (Guriev & Friebel, 2012). The following roles are specific to my roles as an HR Manager.
First, most companies often perceive whistleblowers as disloyal employees. As a result, they risk termination and other forms of punishment upon information release. In my capacity as the HR manager, I recognize that it is illegal to punish employees for rightful whistleblowing. It would be appropriate to grant such individuals adequate protection against unlawful termination and unnecessary punishment from senior management (Barnett, 1992).
Second, I understand that whistleblowing can be very stressful for individuals. Notably, most whistleblowers remain at their workplaces after coming forward. However, they experience various health risks such as insomnia and anxiety. Therefore, I will encourage them to seek to counsel as a way of coping with the effects of whistleblowing (Meinert, 2014).
Third, there are other less controversial actions that whistleblowers can take before reporting questionable practices. Besides, whistleblowing should only become a priority if all other channels prove ineffective. Thus, I will encourage my employees to seek alternative courses of action before blowing the whistle. Some of the reasonable alternatives include strict supervision, continuing education, and restitution (Birley, 1996).
Whistleblower v the Status Quo
In my organization, it is better to be a whistleblower than follow the status quo. Miceli and Janet (1996) described whistleblowing as the practice of disclosing a company’s illegal and immoral practices under an employer’s control to relevant public authorities for action. Many instances, whistleblowers would have made an attempt at internal communication concerning the problem and received no substantial response from management. During such times, I believe in two principles that direct whistleblowers as follows. First, informers blow the whistle on an organization to protect the interest of the public as well as their colleagues. Second, whistleblowing shows a moral obligation to expose illegal and unethical practices (Arora, 2014, p. 2). If these assumptions are true, then, I am certain that the pros of whistleblowing outweigh its visible drawbacks.
References
Arora, R. (2014). Whistle Blowing. Golden Research Thoughts, 4, 1-4.
Barnett, T. (1992). Why Your Company Should Have A Whistleblowing Policy. Sam Advanced Management Journal, 37-42.
Birley, J. (1996). Whistle blowing. Advances in Psychiatric Treatment, 2 (2), 48-54.
Guriev, S., & Friebel, G. (2012). Whistle-blowing and Incentives in Firms. Journal of Economics & Management Strategy, 21 (4), 1007-1027.
Meinert, D. (2014, June). Are you listening? . HR Management .
Miceli, M. P., & Janet, N. P. (1996). Whistle-blowing: Myth and reality. Journal of Management, 22 (3), 507-526.
