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Whistle blowing
Case study
SWOT Analysis
Question Answer

Definition :- Perception is the process
of attaining awareness or
understanding of sensory
information's. It comes from the Latin
word perceptio which means
receiving, collecting and action of
1. The ability to see, hear, or become
aware of something through the
2. The state of being or process of

Process Of Perception

Whistle blowing
What is whistle blowing?
The term whistle blowing can be defined as raising a
concern about a wrong doing within an organization.
Who is Whistle blower:- is a person who exposes
misconduct, alleged dishonest or illegal activity
occurring in an organization.
Types of whistle blower
i. Internal :-it is blowing the whistle inside the
organization. For example designated officer, workers
or bosses in the same organization.
ii. External :-blowing the whistle to law enforcement
agencies or to teams worried with the matters for
example Lawyers, Mass media, law enforcement.

Problem identification whether the

whistle blower is a saint or sinner for
an organization?
Whistle-blowers keep companies honest. It is a strong
means to deter company wrong doings. In fact, if we had
more whistleblowers there may not have been the economic
crisis caused by all sorts of bad behavior in the banking and
lending sector. Top management needs to encourage
whistle-blowing by employees when they see unethical
At times it could become absolute a form of extortion. In
the TAP case, it looks like Durand did not do his homework
and address his concerns appropriately. 30% of the fine is a
little high. We can discourage false whistleblowers with a
more fair compensation policy.

Whistleblower Protection Act

In 2003, the Law Commission of India
recommended the adoption of the Public
Interest Disclosure (Protection of Informers)
Act, 2002.
The Public Interest Disclosure and Protection of
Persons Making the Disclosures Bill, 2010 was
renamed as The Whistleblowers' Protection Bill,
2011 by the Standing Committee on Personnel,
Public Grievances, Law and Justice.
The Whistleblowers' Protection Bill, 2011 was
passed by the Lok Sabha on 28 December
In U.K, the public interest Disclosure Act 1998
provide a framework of Whistleblowers.


Jeffrey Wigand, The Insider

Karen Silk wood, Silk wood
FDA Whistleblowers
Douglus Durand of TAP
Time Magazines 2002 Persons
of the Year

The Whistleblowers:
Time Magazines 2002 Persons of
the Year
Cynthia Cooper
of Worldcom
Coleen Rowley
of the FBI
Sherron Watkins
of Enron

TAP Pharmaceuticals
TAP Pharmaceuticals
ny headquartered inLake Forest,
IL. It was a joint venture formed
in 1977 betweenAbbott
Laboratoriesand the Japanese
pharmaceutical companyTakeda.
President &CEO
Yasuchika Hasegawa

Who is Douglas
Douglas Durand is the paragon
of a corporate whistleblower.
Shortly after stepping in as vice
president of sales at TAP
Pharmaceutical Products in
early 1995, he began to suspect
the company was conspiring
with doctors to overcharge the
U.S. governments Medicare
program by tens of millions of

TAP had several marketed
products selling within the
United States:

PREVACID (lansoprazole)
Lupron Depot (leuprolide)

Case study
Whistleblowers saints or sinners?
Douglas Durand, former Vice President of sales at TAP
Pharmaceutical products He decided to blow whistle on TAP for
collecting 2% fee from doctor as Administrative Costs which was
a kickback Next he and Ainslie again built a case against TAP .
He received bonus of $35,000 from TAP He quit the company. HE
collected 500 boxes of documents containing evidences against
TAP. Finally TAP settled the issue in 2001 & Durands take was
$126 millions But, Prosecutors filed criminal fraud against TAP to
send a strong signal to pharmaceutical industry. Then the holes in
Durands story came to know - The kick backs of Durand never
occurred. Bribing of Doctors into using their Drugs was actually
paid by Doctors themselves. Boston Federal Jury cleared of all
charges. Durand was now retired.

Case Analysis
How he was perceiving things?
There are process of perception:a. Receiving stimuli -through
b. Selection- Learning
c. Organizing- Closure
d. Interpretation- perceptual set

SWOT Analysis on whistleblower

S - He was a ethical and robust person
who had the confidence to rise
voice against unethical and wrong
activities in the company.
W He perceived the things so
and took action on it ,
he also became greedy for money.
O He had the opportunity to stop the
company from involving in unethical
or illegal activity and get a big
amount of money.
T He will never be appointed by any
other company in future.


In this case of Douglas Durand former VP of sales for TAP, it

was his good ethics and intuition to correct the wrongdoing
of the organization while using the precise process of
decision-making and chose to go through the court system
to punish the company for what they have doing illegally.
The reasoning is that having informants report on company
wrongdoings is the best way to prevent illegal activity.
The reason was for his innocence is there were 500 boxes
of evidence and the case settled. In addition, it cost TAP
over 1 billion dollars of legal fees to clear them of all

Question Answer

Question Answer
Q.1) Do you believe that whistle-blowing is
good for organizations and its members, or
is it, as David Stetler believes, often a
means to extort large financial gains from
Q.2) How might the self-fulfilling prophecy
affect a whistle-blowers search for
incriminating evidence against a company?

Question Answer
Q.3) When frivolous lawsuits occur, how might

these cases affect future whistle blowers who

have a valid legal claim against their company?
Would they be more or less likely to come
forward? How might their claims be evaluated?
What should companies and the government do
to prevent frivolous lawsuits?
Q.4) Do you believe that employee of a company
have an ethical obligation to first attempt to
report wrongdoings to member of the company
itself, or should they go straight to the
authorities when they suspect illegal activity?

Team Work
Name of team members
Parveen Bano
Mahima Bajpai
Neha Panday

Poonam kumari

For paying attention