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Depending on who one asks, different definitions of
whistleblowing exist. Eaton and Akers
(2007) stated that “In its simplest form, whistleblowing involves the act of
reporting wrongdoing within an organization to internal or external parties”
(para. What is Whistleblowing). Most
organizations have Whistleblower hotlines.
Conducting a quick Google search searching for hotlines resulted in most
state government, state schools, and major corporations.
Sarbanes-Oxley Act of 2002 (SOX)
Of impetus in the creation of Sarbanes-Oxley Act of
2002 (SOX) was the scandalous affairs of Enron, WorldCom, and Tyco (Eaton &
Akers). SOX set forth rules for
corporate governance that were not in place prior to 2002, thus the
scandals. “After all, SOX was developed
in response to high-profile corporate scandals that included Enron, WorldCom,
and Tyco, and was not designed to address problems in other sectors” (Eaton
& Akers, 2007, p. 1). From the
WorldCom and Enron situations two whistleblowers emerged. “In 2002, Time magazine named whistleblowers
Cynthia Cooper of WorldCom, Sherron Watkins of Enron” (para. What is
Whistleblowing).
From the WorldCom and Enron situations, two
whistleblowers emerged. “In 2002, Time
magazine named whistleblowers Cynthia Cooper of WorldCom, Sherron Watkins of
Enron” (para. What is Whistleblowing).
One of the most famous whistleblowers was Sherron Watkins who turned in
Ken Lay in the Enron scandle. It seems
that the employees who lost money have found ways to make money from the
situation. Right after the company filed bankruptcy, Enron-related products
appeared all over eBay, the online auction.
At one point, in 2002, there were up to 4200 auctions (Hageman, 2002).
Sherron Watkins Today
Sherron Watkins is now presenting on ethics and
reminds college students today of the importance of ethics in the workplace.
Don’t be afraid to speak the truth. The real tragedy
is when people stay silent.” And, don’t allow big bucks to lure you into
overlooking wrongs.
Students entering the workforce should pay attention
to the tone set by an employer’s CEO, and associate with those who demonstrate
pristine ethics and values, and who love the organization. “I used to think the
person at the top didn’t matter, but now, I believe the complete opposite. The
one person at the top makes all the difference,” Watkins said. (Heidleberg
University, 2010)
Dr. Jeffrey Wigand
Interesting, there is another tale of whistleblowing
that was made into a movie called The Insider.
This movie was based on another corporate whistle blower, Dr. Jeffrey
Wigand. (“A research chemist comes under
personal and professional attack when he decides to appear in a "60
Minutes" expose on Big Tobacco”)
“Dr. Wigand decided to go public by delivering a
damning courtroom deposition against his employer – a move that eventually led
to the tobacco industry’s $246 billion litigation settlement in 1998 to help
pay for smoking-related health care bills in the U.S." (Thomas,
2010). Although Dr Wigand endured severe
retaliation, much like Sherron Watson, he advises young people to stand up for
ethical behavior. “With regard to Dr.
Wigand's advice to young people, what astonishes me is that despite his own
experience of severe retaliation and negative effects on his life, he advises
young people to try to change the system” (Marcia, 2004, para. 4).
More on whistleblower retaliation in future
articles.
Author: Dr. Andree Swason
References
Eaton, T. V., & Akers, M. D. (2007).
Whistleblowing and good governance: Policies for universities, government
entities, and nonprofit organizations. The CPA Journal Online. Retrieved from
http://www.nysscpa.org/cpajournal/2007/607/essentials/p58.htm
Enron whistleblower: Ethics matter in corporate
culture. (2010). Heidleberg University. From
http://www.heidelberg.edu/newsevents/2010/patadamsfall2010
Hageman, W. (2002, Jan 28). Enron ethics manual and
much more for sale on eBay. Knight Ridder Tribune Business News. Retrieved from
http://search.proquest.com/docview/462313204?accountid=32521
Marcia, P. M. (2004). Whistle-blowing research and
the insider: Lessons learned and yet to be learned. Journal of Management
Inquiry, 13(4), 364-366. Retrieved from
http://search.proquest.com/docview/203306587?accountid=32521
Thomas, C. (2010, Nov.). Whistleblowing is dangerous
to your health. The Ethical Nag. Retrieved from
http://ethicalnag.org/2010/11/20/whistleblowing-is-dangerous-to-your-health/
