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Whistleblowing: Internal Whistleblowing
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Whistleblowing can be defined in a number of ways. In its simplest form, whistleblowing involves the act of reporting wrongdoing within an organization to internal or external parties. Internal whistleblowing entails reporting the information to a source within the organization. External whistleblowing occurs when the whistleblower takes the information outside the organization, such as to the media or regulators. Establishment of a clear and specific definition of whistleblowing itself should be a fundamental component of every whistleblower policy.
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This is in recognition of the potential costs that are associated with whistleblowing. Some of these costs include loss of jobs, difficulty in getting a new job and loss of faith in others such as the government or the judicial system. Some may experience name-calling like traitors and troublemakers. Whistle-blower may face heavy financial burden as a result of loss of job or they may have to bear the legal cost if whistleblowing is unsuccessful. The employees ... should consider and exhaust all internal procedures and possibilities within the firm first before going public. Talk to the top managers and even the board of directors if they need to.
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Even in cases where whistleblowing occurred, it was not always heeded. In 1972, Firestone Tire Director of Development Thomas A. Robertson sent top management a memo warning that the 500 tire was inferior and subject to belt-edge separation at high speeds. His warning was ignored despite reports about poor performance from major customers such as General Motors, and the 500 tire was kept on the market. By the time Time magazine reported that accidents caused by blowouts had resulted in more than 41 deaths and hundreds of serious injuries, the company had already replaced 3 million tires and spent millions of dollars in personal injury lawsuits. If Robertson had received an internal hearing or blown the whistle externally, such disasters for the public and the company could have been avoided.
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It holds no competence for answering questions on the lawfulness of such codes or of the whistleblowing system itself under labour law (e.g. do codes of ethics comply with the provisions of the Labour Code? Do they form part of the company’s internal rules and procedures ? Is the employees’ approval of the charter required? Should a special protection for whistleblowers be provided for in the law? Is the investigative period part of the disciplinary procedure?).
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Some theorists argue that whistleblowing only takes place when the information is placed on record publicly. Dandekar (1991: 91)... argues that "…managers define whistleblowing to include going outside the normal chain of command even if not actually going public with damaging information". The reporting of information can therefore be internal where the whistleblower talks to people higher up in the organisation or external where it is reported to the media, enforcement agencies or public interest groups (Weiss 1994: 207). The correct procedure for a whistleblower to follow is often described as "internal first, law enforcement agencies second, and news media last" (Callahan & Collins 1992:942).
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The Nolan Committee recommends that further education corporations should institute codes of practice on whistleblowing. The code should encourage members of staff to raise genuine concerns about malpractice internally without fear of victimisation. The procedure should balance safeguards for those who raise genuine concerns against the need to protect staff, the governing body, students and the college from unfounded allegations.
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Internal Whistleblowing