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Posts tagged "Whistleblower"

So You Have A Whistleblower

Initially, the news that any individual in your company has filed an Internal Report detailing potential illegal, inappropriate or unethical behavior may seem like a terrible development and it is natural to feel shocked or concerned when such an event occurs but it is better than keeping it in the dark. Simply stated, if a "whistleblower" brings up a real problem, you may want to deal with it and get it resolved before the issue can affect the business' viability. In point of fact, a recent report in Harvard Business Review written by researchers Stephen Stubben of the University of Utah and Kyle Welch of the George Washington University found that internal whistleblowing is really a sign of a company's good health. In fact, in an analysis of over one million internal whistleblower reports at United States companies, they found that those companies that had active and viable reporting systems for internal reporting were more likely to be able to address those issues before they became costly legal problems. Do not overlook the mandates under the Sarbanes - Oxley Act that require "public companies" to have in place a procedure/plan to allow employees to engage in "anonymous whistleblowing" as part of their compliance programs. It should also be noted that under the Bounty programs established through the False Claims Act and the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, those Bounty Programs may get employees to report to the government potential illegal or unethical behavior rather than to their company. When it is done internally within the organization, it is certainly better for the company than becoming embroiled in a lengthy and costly governmental investigation.

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