Thursday, March 24, 2016

Should You Become a Whistleblower? (Part 1)

Should You Become a Whistleblower? (Part 1)

Those who work or volunteer in organizations see wrongdoing around them all the time.  One study of federal employees found that about 7% had reported to someone (including friends) that they had seen illegal or wasteful activities[1].  About 1% of all employees of companies that use two compliance hotline services reported wrongdoing,[2]  which means about 1 million people become whistleblowers each year in the U.S.

That is reassuring because whistleblowers are potentially useful in modern business[3].  Employees seldom have power or control over the entire cycle of a production or service, and they rarely have meaningful responsibility for the final result of their work.  Focusing on how the work is accomplished distracts employees from the ethical grounds of their actions.  Organizations are so complex that workers are not granted the liberty to question the legitimacy of their leadership[4]

Less able to rely on workers to correct wrongdoing directly, organizations need the whistleblower as a control measure.  Because they are familiar with company practices and infrastructure, whistleblowers are well situated to ask questions and gather data to understand whether a wrong was done.  A 2007 survey of mostly large (1,000+ employees) companies from more than 100 countries determined that internal whistleblowers, outside of formal corporate controls, discovered 24% of fraud incidents[5].

In the broader society, values that support whistleblowing, such as freedom of speech and civil rights, are strengthened by the whistleblower[6].  Whistleblowing also fits in a broad tradition of righteous dissent.  Harold Laski wrote,

“No man ever remains free who acquiesces in what he knows to be wrong.  His business as a citizen is to act upon the instructed judgment of his conscience.  He may be mistaken, but he ought unceasingly to be aware that the act he opposes is, after all, no more that the opinion of men who, like himself, are fallible.”[7]

Whistleblowers tend to have good job performance ratings, to be more highly educated, to hold higher-level or supervisory positions, to score higher on tests of moral reasoning, and to value whistleblowing in the face of unethical behavior[8].   The whistleblower’s job responsibilities, such as internal audit or, in my case, compliance oversight, can facilitate whistleblowing[9].  Situational factors, like the seriousness of the misconduct and the organizational climate that tolerates wrongdoing, can also help drive whistleblowing[10].

While whistleblowers are sometimes described as unstable or rogue characters, studies have found slight evidence of personality predictors of whistleblowing[11].  Interviews of whistleblowers have revealed generally conservative people who built their careers by conforming to requirements of bureaucratic life and believed that they defended the true mission on the organization by revealing illicit practices.  Many whistleblowers find strength in belief systems or external supporters who encouraged their decision[12]

The whistleblower is seldom the heroic warrior standing between the organization and the deaths of hundreds.  The whistleblower is more likely to be an ordinary employee making a good faith attempt to stop what he perceives to be a serious wrongdoing[13].  Often whistleblowing involves speaking out in a situation that is morally ambiguous[14]; the facts are not always clear, and the conclusion of wrongdoing is not agreed by all.

C. Fred Alford warned that the potential whistleblower must forsake some commonly accepted understandings in order to manage the tasks she is about to undertake.  In particular, the whistleblower must be willing to abandon her belief that:

-          The individual matters
-          Law and justice can be relied on
-          Ours is a government of laws, not men
-          The individual will not be sacrificed for the group
-          Loyalty is not simply herd instinct
-          One’s friends will remain loyal if colleagues do not
-          The organization is not fundamentally immoral
-          It makes sense to stand up and do the right thing
-          Someone, somewhere, who is charge knows, cares, and will do the right thing
-          The truth matters, and someone will want to know it
-          If one is right and persistent, things will turn out all right in the end
-          Even if they do not turn out all right, other people will know and understand
-          The family is a haven in a heartless world
-          Even if these beliefs prove false, the individual need not become cynical

Civilization is marked by the surrender of power by individuals to government, and revolution represents the withdrawal of that surrender[15].  No less do employees surrender power in expectation of compensation and reasonable treatment by their employers.  When individuals embark on revolt in large social movements or in the quotidian insurrections of whistleblowers, they do so with qualms, trepidations, and guilt.  But with all their inner turmoil they also think that they are right and just in their actions and that the established rules and rulers are unjust.

When the wrongdoing results from controllable and normal organizational causes, the observer presumes that the actor intended to commit the wrong and she becomes more likely to blow the whistle.  When it comes, the company’s retaliation may be perceived as another example of controllable and intentional wrongdoing, increasing the probability of further whistleblowing[16].

Values and emotions, rather than rational cost-benefit analyses, dominate the decision to blow the whistle[17].   The whistleblower’s initial response may be accompanied by fear of disrupting the bond of loyalty or unleashing retaliation.  When the company retaliates, the employee’s company loyalty diminishes, and the angered employee proceeds to further, less inhibited responses.  In this way, retaliation against an internal disclosure can shift the observer’s evaluations in ways that make external disclosure appear to be a more appealing or less risky option than silence.

While a self-evaluation of motives is a critical step before one undertakes the task of becoming a whistleblower, it is seldom enough[18].   Most whistleblowers are unable to say whether their action was personally or socially motivated, driven by ego, greed for a potentially large payout, revenge, or an altruism worthy of a cultural hero[19].  

For the ethicist, whistleblowing done properly requires appropriate motivations, evidence, analysis and use of channels of reporting[20].  A whistleblower, then, is on thin ethical ice if she acts out of a personal desire to get ahead or does it out of spite.  By the ethicist’s account, the whistleblower’s stance is dubious if her evidence is scant, she has not done a competent analysis, or she has not followed the proper channels.  But this traditional view sets the bar too high.  Motivations are always mixed, evidence is usually ambiguous, and proper channels are built to stifle dissent.

You have observed an incident, whose ethicality is dubious.  Your motivations to speak up or be silent are a rich mix, involving loyalties, ambitions, emotions, responses to ethical training, and other personal and organizational forces.  You cannot be entirely sure of the consequences of objecting or acquiescing in the behavior.  Still, you must decide what to do.





[1] U.S. Merit Systems Protection BoardBlowing the Whistle: Barriers to Federal Employees Making Disclosures.”  A report to the President and the Congress of the United States.  2011
[3] Miethe, Terance D.  Whistleblowing at Work.  Boulder, CO: Westview Press.  1999
[5] PriceWaterhouseCoopers “Economic crime: people, culture & controls” 2007
[6] Mansbach, Abraham. “Whistleblowing as Fearless Speech: The Radical Democratic Effects of Late Modern Parrhesia.” In Whistleblowing and Democratic Values. David Lewis and Wim Vanderkerkhove (eds.). The International Whistleblowing Research Network. 2011
[7] Laski, Harold J.  “The Dangers of Obedience.”  In The Dangers of Obedience & Other Essays.  New York: Johnson Reprint Corporation.  1968
[8] Mesmer-Magnus, Jessica R. and Chockalingam Viswesvaran. “Whistleblowing in Organizations: An Examination of Correlates of Whistleblowing Intentions, Actions, and Retaliation.” Journal of Business Ethics 62 (2005): 277–297
[11] Ibid
[13] Cassematis, P. G. and R. Wortley. “Prediction of Whistleblowing or Non-reporting Observation.” Journal of Business Ethics 117 (2013): 615-634
[15] Davies, James Chowning. When Men Revolt and Why. New Brunswick: Transaction Publishers. 1997
[17] Henik, Erika Gail. “Mad as Hell or Scared Stiff? The Effects of Value Conflict and Emotions on Potential Whistle-Blowers.” Journal of Business Ethics. 80.1 (June 2008): 111-119.
[18] Devine, Tom and Tarek F. Maassarani. The Corporate Whistleblower’s Survival Guide. San Francisco: Berrett-Koehler Publishers, Inc. 2011
[19] Miethe, Terance D. 1999

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