Whistle Blower: An Employee Who Reports Employer's Violation of Law

August 25, 2024 4 min read Social Sciences Law Management Whistleblower Legal Violations Employer Misconduct Employee Protection Ethics

A thorough exploration of whistle blowers - individuals who report their employer's legal violations, including their importance, protections, and historical context.

A whistle blower is an employee who reports employer’s violation of a law, regulation, or other type of illegal activity. This act of revealing wrongdoing within an organization can take various forms and relates to a wide array of potential infractions, including corruption, fraud, and public safety concerns.

Legal and Ethical Significance

Whistle blowers play a crucial role in maintaining ethical standards and legal compliance within organizations. Reporting misconduct helps to:

Uphold the law: Correct and prevent violations.
Protect public interest: Guard against harm.
Promote transparency: Encourage accountability and integrity.

Historical Context of Whistle Blowing

Whistle blowing is not a modern phenomenon. Throughout history, individuals have exposed wrongdoing. One of the earliest documented cases involves the Massachusetts Bay Colony in 1777, where navy sailors reported the torture of British prisoners by their superiors, resulting in legislative protections for whistle blowers.

The term “whistle blower” originates from a whistle used by referees and police to indicate foul play or illegal activity.

Types of Whistle Blowing

Internal Whistle Blowing

This involves reporting misconduct within the organization to internal management or compliance departments.

External Whistle Blowing

Here, the whistle blower reports violations to external entities such as regulatory agencies, media, or law enforcement.

Anonymous Whistle Blowing

An individual can report misconduct without revealing their identity to avoid retaliation or backlash.

Legal Protections for Whistle Blowers

United States

Whistleblower Protection Act (1989): Protects federal employees who disclose government corruption, fraud, and waste.
Dodd-Frank Wall Street Reform and Consumer Protection Act (2010): Includes provisions that reward whistle blowers financially for information leading to securities law enforcement actions.

European Union

EU Whistleblower Protection Directive (2019): Strengthens protections for whistle blowers within EU member countries, including creating safe reporting channels.

Examples of Whistle Blowing

Edward Snowden (2013): Exposed global surveillance programs run by the NSA.
Erin Brockovich (Mid-1990s): Investigated and took legal actions against the Pacific Gas and Electric Company (PG&E) for contaminating drinking water in Hinkley, California.
Sherron Watkins (2001): Alerted the board of directors to accounting irregularities at Enron.

Challenges and Considerations

Retaliation

Whistle blowers often face the risk of retaliation including job loss, harassment, and reputation damage.

Moral Dilemma

Whistle blowing can involve difficult moral decisions, balancing loyalty to the organization against the need to expose wrongdoing.

Legal Processes

Reporting mechanisms must ensure confidentiality and protect the whistle blower’s rights.

Case Example

Consider a case where an employee, observing financial irregularities, reports the issue internally, resulting in corrective measures without external intervention. This scenario illustrates how effective whistle blower policies can resolve issues while maintaining organizational integrity.

Advantages and Disadvantages

Advantages

Enhanced Transparency: Improves organizational integrity.
Legal Compliance: Averts legal penalties and liabilities.
Public Trust: Bolsters credibility and stakeholder confidence.

Disadvantages

Possible Retaliation: Risks for whistle blowers.
Organizational Conflict: Potential internal strife.
Economic Consequences: Financial impacts due to lawsuits and penalties.

Whistleblower Protection: Legal measures designed to shield whistle blowers from retaliation.
Corporate Accountability: Mechanisms and practices ensuring that organizations adhere to legal and ethical standards.
Ombudsman: An official appointed to investigate and address complaints within organizations, often serving as an intermediary for whistle blowers.

FAQs

What qualifies someone as a whistle blower?

An individual qualifies as a whistle blower if they report specific instances of illegal or unethical conduct within their organization.

Are whistle blowers protected by anonymity?

Many legal frameworks and policies support anonymous reporting mechanisms to protect whistle blowers from retaliation.

Can whistle blowing lead to legal action?

Yes, disclosures by whistle blowers can lead to investigations, legal actions, and potential reforms to prevent further misconduct.

Summary

Whistle blowers are critical to the enforcement of legal standards and ethical practices within organizations. While they face significant challenges, including potential retaliation and moral dilemmas, the protections and policies in place aim to support their vital contributions to transparency and accountability. Historical cases and modern legal frameworks illustrate the ongoing evolution and importance of whistle blowing in safeguarding public interest and institutional integrity.

References

“Whistleblower Protection Act of 1989,” U.S. Government Publishing Office.
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, U.S. Securities and Exchange Commission.
European Union Whistleblower Protection Directive 2019.

This comprehensive entry ensures readers understand the depth and breadth of whistle blowing, its implications, and its historical and legal contexts.