Whistle Blowing
Whistle Blowing
Whistle Blowing
What is Whistle-Blowing?
The term whistle-blower was initially used to describe
government employees who went public with complaints of
corruption or mismanagement but it is now applied to
employees in the private sector as well. Whistle-blowing is
ethically problematic because it involves a conflict between
an employees obligation to his or her company and a
general obligation to the public. Employees are required not
only to do the work they are assigned but also to be loyal to
their employer, preserve the confidentiality of company
information, and work in the best interest of the company.
Deciding when whistle-blowing is morally justified and when
it is not requires a balancing of many different obligations.
From: John Boatright , The Ethical Conduct of Business
Why is it morally
problematic?
Conflict of interest
Loyalty to employer
Moral
Legal (contractual)
Utility
Beneficence
Nonmaleficence
Harm to others
Harm to self
Liberty
Justice
Conflict of Obligation
Employee Obligations
Self and Family
Employer
Society
Employer Obligations
Stakeholders (stockholders, employees, suppliers etc..)
Employee
Loyalty
Loyalty as a moral obligation
Agency Problem
Employee to employer
Employer to employee
Other Stakeholders
Utility
Whistle-Blowing and Harm
Degree of harm being reported
Degree of harm resulting from whistleblowing
Beneficence
Advance the most important
interests of others and remove harms
Whose interests are at stake?
Non-maleficence
Do no harm
Harm of act being reported
Harm of Whistle-blowing
Stockholders
Employees
Consumers
Suppliers
Financiers
Local Community
Liberty
Liberty of Employee
Right to free speech
Liberty of Employer
To conduct business as it sees fit
Justice
Treat equals equally and unequals
unequally.
Justice in distribution
Justice in retribution
Components of a Whistle-Blowing
Policy
An effectively communicated statement
of responsibility.
A clearly-defined procedure for
reporting.
Trained personnel to receive and
investigate reports.
A commitment to take appropriate
action.
A guarantee against retaliation.
Stockholder Theory
Approach
Free Market Approach
Liberty
Whistle-blower
Corporation
Whistle-Blowing Policy
Employer/employee contractual negotiations
Result: The free market will punish ill-advised whistleblowing and ill-advised retaliation by employers.
Stakeholder Theory
Approach
Corporations are persons and have
both moral and legal obligations.
Categorical Imperative
Treat Persons as Ends not Means
Truth-Telling
Whistle-Blowing Policy
A public matter requires government
oversight