MANAGEMENT
THE WHISTLEBLOWER’S DILEMMA: DO THE RISKS OUTWEIGH THE BENEFITS?
THE WHISTLEBLOWER IS BACK. INSTANCES OF INSIDERS CALLING OUT CORRUPTION, LAWBREAKING AND UNETHICAL BEHAVIOR ARE HAPPENING ALL THE TIME. BUT NOT SINCE THE ENRON AND WORLDCOM SCANDALS HAS THE ROLE OF THE WHISTLEBLOWER STEPPED OUT OF THE SHADOWS AS IT HAS NOW.
Less clear is whether whistleblowing as a tool will emerge bruised or burnished in the wake of recent whistleblower allegations that President Trump held back foreign aid to the Ukraine in exchange for potentially damaging information on potential 2020 election rival Joe Biden. The administration has worked hard in recent weeks to stigmatize the image of the whistleblower as an archetype, portraying him or her as an agent of treachery rather than as a servant to the common good and the rule of law itself. But even before this particular
turn of events, the decision to act on conscience in response to wrongdoing was considered “a very risky proposition for an employee who would like to stay working at the company,” says Janice Bellace, Wharton professor emeritus of legal studies and business ethics. That’s because for all of the prominence of whistleblowing in the past decade or so, there is still often no safe roadmap
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for a worker who has seen something to say something.
“Most people who perceive that
there is some wrongdoing often do not know the specifi c law that would apply,” says Bellace. “As a result, they don’t actually have a good grasp of whether unlawful wrongdoing or probable wrongdoing has occurred. Moreover, and this has happened in some cases, they begin to access material that they might not have the right to access. So, I fi nd these three points problematic from an employee’s vantage point. And even if you do know the law and do have proof, there will be a considerable period of time before you can have your position validated, and you may be without your job during that period of time. That’s a diffi cult proposition.” “It’s a really hard issue,” says
University of Pennsylvania professor of corporate law David Skeel. “You want everybody to behave ethically and you want to create
an environment where people feel comfortable reporting this behavior. But the reality of human interaction is that we often suspect that when we report, we’ll be punished. It starts at the playground when you are a kid and it doesn’t go away.” Many assume that the various systems of rewards and protections that are in place meant to encourage whistleblowing would make it easier for people to come forward. And often they do. “But none of those things makes the issue go away,” says Skeel. Deciding whether to blow the whistle is still a tricky matter. “When you add in the fact that traditionally a whistleblower has lots of relationships within the fi rm that could be jeopardized, it’s tough to stand up and do the right thing. It’s just one of those dilemmas.”
WHY DO IT? How does a worker know what warrants a whistleblower response? Anyone facing the question knows
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