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7 views

Whistle

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Uploaded by

alexjaneth10
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What Is a Whistleblower?

A whistleblower is anyone who has and reports insider knowledge of illegal, illicit, and fraudulent
activities occurring in an organization. Whistleblowers can be employees, suppliers, contractors, clients,
or any individual who becomes aware of dubious business activities. Whistleblowers are protected from
retaliation under various programs created by the Occupational Safety and Health Administration
(OSHA), Sarbanes-Oxley Act, and the Securities and Exchange Commission (SEC). Federal employees are
protected under the Whistleblower Protection Act of 1989.1

Origin of the Term

The use of the term "whistleblower" dates back to the 19th century. However, Ralph Nader is
sometimes credited with coining the modern usage of the term in the 1970s as a way to avoid the
negative connotations of alternatives like "informer." The term combines "whistle," a device used to
alert or call attention to, and "blower," referencing the person issuing the alert by the blowing of the
whistle.

Less commonly, sports referees were also called whistleblowers as they alerted the crowd, players, and
coaches of illegal sports plays. Journalists and other political activists, such as Ralph Nader, excessively
used the term during the 1960s, changing the public's understanding of the term to what it is today.

Whistleblower Protection

Whistleblowers are protected from retaliation should the information provided be confirmed to be true.
This protection includes prohibiting the accused company from taking adverse or harmful actions
against the reporter. Antagonistic activities include demotion, termination, reprimands, and other
punitive reactions. Whistleblower protection also prohibits the company from pursuing legal action
against the whistleblower to recoup losses incurred during the investigation or imposed penalties.

In certain circumstances, more protection may be offered where threats of physical violence against the
whistleblower or associates and family of the whistleblower are found.

Whistleblower Rewards

Often the whistleblower may be entitled to a reward as compensation for reporting illicit activities.
Usually, this reward is a percentage of the dollar amount recuperated by the government or regulating
agency resulting from the whistleblower's information. Recovery of a minimum amount may be
necessary to qualify, and the information provided must be unique or otherwise not previously
reported.

Many companies have mechanisms to inform management of wasteful practices. These practices may,
or may not be, illegal in nature. Therefore, persons reporting wasteful practices may not receive
protection as a whistleblower. However, many organizations encourage suggestions from all associates
to improve operations and practices. The reporting person may be recognized for their efforts in
improving efficiency and may be entitled to some nominal reward.

In incidences involving the discovery of gross waste, or waste involving a significant dollar amount of
value, especially within government agencies, the reporting of waste can qualify the person as a
whistleblower.

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