Académique Documents
Professionnel Documents
Culture Documents
Whistle
Major Topics
- What is Whistle-Blowing ?
- Internal and External Whistle-
Blowing ?
- The Ethics of Whistle-Blowing.
- When is Whistle-Blowing Ethical ?
- When is Whistle-Blowing Unethical ?
- The Duty to respond.
- Addressing the needs of Whistle-
Blowers.
What is Whistle-Blowing ?
First,
Second,
External Whistle-Blowers:
An employee discovering corporate
misconduct and choosing to bring it to the
attention of law enforcement agencies
and/or the media.
The Ethics of Whistle-Blowing
Whistle-Blowers provide an invaluable service to their
organizations and the general public.
Helps organization,
The discovery of illegal activities before the situation is
revealed in the media could potentially save organizations
millions of dollars in fines and lost revenue from the
inevitable damage to their corporation reputations.
Helps general public,
Some argue: that such action is not brave at all, they are
actions motivated by money or by personal egos, they
challenge the policies and practices of their employers.
Or
Cynthia Cooper
of Worldcom
Coleen Rowley
of the FBI
Sherron Watkins
of Enron
Cynthia Cooper of
WorldCom
Cynthia Cooper was Vice-president of MCI internal
audit. During a 2002 audit, Cooper discovered
that some of WorldCom's financial practices were
shady. The company had been classifying
operating costs as capital expenditures, thereby
inflating its profits. She took her findings to the
audit committee of WorldCom's board. Within
days, the board fired WorldCom's high-flying CFO,
Scott Sullivan, and revealed that the company
had overstated its profits by what ultimately
proved to be $11 billion. It was the biggest fraud
in U.S. corporate history. WorldCom declared
bankruptcy in July 2002, after its stock's value
had declined by $180 billion and its founder,
Bernard Ebbers, had left the company.
Coleen Crowley of the FBI
Coleen Rowley was chief counsel of the FBI's
Minneapolis field office. In a 13-page memo, she
outlined how FBI headquarters thwarted agents'
attempts to investigate Zacarais Moussaoui, the
alleged 20th hijacker. The bombshell memo led
bureau chief Robert Mueller to reorganize the
agency. Rowley testified before the Senate Judiciary
Committee about the FBI bureaucracy that
frustrates agents' attempts at innovative
investigation and mires them in paperwork.
Scandal
The real Enron scandal lies not in the nervous contacts with cabinet members when the giant
corporation was sliding down the tube, but in its ability to manipulate a government awash
in campaign contributions in the days when the company was flying high.
That President Bush called CEO Kenneth Lay "Kenny Boy" was not a scandal. What was a
scandal was that Enron profited from a climate of regulatory laxity that it helped to dictate.
Mr. Lay and other Enron executives met several times last year with Vice President Dick
Cheney, who was heading the president's energy task force. Mr. Cheney is still stonewalling
congressional efforts to find out what happened in those meetings.
But the task force recommendations for "reforming" the utility regulation law to provide
"greater regulatory certainty" (read: deregulation) could have been written by Enron. Enron
helped create what some called a regulatory "black hole."
The Bush White House was deeply penetrated by a company that became the nation's
seventh-biggest corporation not by making energy but by making deals. Economic counselor
Lawrence Lindsey had been a paid adviser. Political strategist Karl Rove had been a big
investor. Republican national chairman Mark Racicot had been a paid lobbyist. Lay himself
had been on an early list of possible cabinet appointments.
So much influence did Enron wield with the Bush administration that Lay could tell Curtis
Herbert Jr., chairman of the Federal Energy Regulatory Commission, that he would be
reappointed if he changed his views on electricity regulation. Mr. Herbert didn't, and he
wasn't.
Congress was not left untainted. More than two-thirds of the Senate and 40 percent of the
House benefited - if that's the word - from Enron money, some of which is now being
returned by embarrassed lawmakers of both parties.
The $5.8 million in campaign donations from Enron sources since 1989 appear to have been
a good investment. The tax rebate provision of the House-passed economic stimulus
package alone would give Enron $254 million.
The consequences of Enron's penetration of the United States government remain to be
investigated by anyone left in government who doesn't have to recuse himself. Some day we
may know whether Enron would have been able to bilk employees, investors, and a nation,
were it not for that regulatory black hole that it bought for itself.
Enron is not unique in the annals of lobbyist interests prevailing over the public interest.
From contracts for unneeded weapons to a banana trade war, the decisions tend to come out
in favor of the big contributors. What makes the Enron story different is the drama of the
huge implosion in full view of thousands of victimized employees and investors.
http://www.csmonitor.com/2002/0118/p11s03-cods.html
Some good links for more
info
http://www.wanttoknow.info/021222t
ime.personofyear
http://www.opinionjournal.com/week
end/hottopic/?id=110007924
http://www.caslon.com.au/whistlecas
esnote.htm
http://www.forbes.com/forbes/2005/0
314/090.html