WHISTLE BLOWING 1

•WHISTLE BLOWING 1
BUSINESS ETHICS
NET MANAGEMENT

•     DR SHASHI AGGARWAL

•     MEANING AND INTRODUCTION OF WHISTLE BLOWING

1.       WHISTLE BLOWING INVOLVES CALLING PUBLIC ATTENTION TO THE WRONGDOING MAINLY IN ORDER TO AVERT HARM.

2.       ACT OF PUTTING THE SOCIETY ON ALERT ABOUT THE RISK INVOLVED

3.       WHISTLE BLOWING CAN BE EXPLAINED AS AN ACT OF CONFIDENTIAL DISCLOSURE OF AN INFORMATION BY PERSON ( WITH IN OR OUTSIDE AN ORGANIZATION ) WHICH IS OTHERWISE NOT ACCESSIBLE TO PUBLIC AND IS RELATED TO SOME ACTIVITIES OF THE ORGANIZATION WHICH IS GENERALLY PUBLIC INTEREST

•     DEFINITION OF WHISTLE BLOWING

1.       ROSTHSCHILD AND MIETHE, 1994,” THE DISCLOSURE OF ILLEGAL, UNETHICAL OR HARMFUL PRACTISES IN THE WORKPLACE TO PARTIES WHO MIGHT TAKE ACTION.”

2.       RICHARD T DE GEORGE : WHISTLE BLOWING AS THE INSTANCE OF REPORTING IMPROPER ACTIVITIES TO AN APPROPRIATE PERSON

•     MEANING AND INTRODUCTION OF WHISTLE BLOWING

•     THE MISCONDUCT REPORTED UNDER WHISTLE BLOWING MAY BE CLASSIFIED :

1.       A VIOLATION OF ANY LAW,RULE OR REGULATION

2.       AN ABUSE OF AUTHORITY

3.       GROSS NEGLIGENCE AND MISMANAGEMENT

4.       WASTAGE OF FUNDS AND CORRUPTION

5.       A CONSIDERABLE AND SPECIFIC DANGER TO PUBLIC HEALTH

6.       A CONSIDERABLE AND SPECIFIC DANGER TO PUBLIC SAFETY

•     CHARACTERISTICS OF WHISTLE BLOWING

1.       IS DONE VOLUNTARILY AND INTENTIONALLY BY THE WHISTLE BLOWERS. NO LEGAL OBLIGATION

2.       DONE IN PUBLIC INTEREST AND NOT FOR ANY PERSONAL OR SELFISH MOTIVE

3.       THE WHISTLE BLOWER HAS REASONABLE BELIEF THAT THE CONDUCT OR DEED REPORTED IS NOT APPROPRIATE

4.       THE ACT OF WHISTLE BLOWING KEEPS ATTENTION OF PROPER AUTHORITY TO THE PREVALENT MAL PRACTISES IN AN ORGANIZATION

5.       CAN BE EXTERNAL OR INTERNAL

6.       OBVIOUSLY EXPECT THE ORGAIZATION OR THE EXTERNAL AGENCIES TO RESPOND POSITIVELY

7.       CAN BE CARRIED AGAINST A PERSON,AN ORGANIZATION OR A GOVERNMENT

•     MEANING AND DEFINITION OF WHISTLE BLOWER

•     A WHISTLE BLOWER IS ONE WHO BLOWS THE WHISTLE ON CORRUPTION, CRIME AND OTHER CONDUCT OF MISCONDUCT INCLUDING UNETHICAL CONDUCT. HE IS THE PERSON WHO BLOWS THE WHISTLE I.E RAISES HIS VOICE AND INFORMS THE PUBLIC OR CONCERNED PERSON ABOUT ANY INAPPROPRIATE OR UNDESIRABLE ACTIVITY GOING ON INSIDE THE ORGANIZATION. HE MAY OR MAY NOT BE AN EMPLOYEE AND COULD BE ANY PERSON WHETHER ANY OUTSIDER OR INSIDER

•     FIRST MODERN DEFINITION BY US CONSUMER ACTIVIST RALPH NADEL IN 1971 WAS AN ACT OF A MAN OR WOMEN WHO BELIEVING  THAT THE PUBLIC INTEREST OVERRIDES THE INTEREST OF THE ORGANIZATION HE SERVES,BLOWS THE WHISTLE THAT THE ORGANIZATION IS INVOLVED IN CORRUPT,ILLEGAL ,FRAUDULENT OR HARMFUL ACTIVITY

•     AS PER WHISTLE BLOWER PROTECTION BILL 2011,” WHISTLE BLOWER IS A PERSON MAKING PUBLIC INTEREST DISCLOSURE RELATED TO ACT OF CORRUPTION,MISUSE OF POWER OR CRIMINAL OFFENCE BY PUBLIC SERVANT

•     HISTORY OF WHISTLE BLOWING

1.       IS OF BRITISH ORIGIN AS IT WAS DERIVED FROM THE PRACTICE OF ENGLISH POLICE OFFICERS WHO BLEW THEIR WHISTLES TO ALERT OTHERS AGAINST WRONG DOING

2.       ORIGIN OF WHISTLE BLOWING IN US CAN BE TRACED TO 1863 IN RESPONSE TO THE FRAUD COMMITTED WITH IN THE GOVERNMENTAL SECTOR

3.       FEDERAL FALSE CLAIMS ACT 1863 WAS IMPLEMENTED TO LIMIT FAKE INVOICES OF GUNPOWDER BY DEFENCE CONTRACTORS DURING THE WAR IN THE US

4.       THE FALSE CLAIMS ACT WAS AMENDED IN 1986 TO AUTHORIZE WHISTLE BLOWERS TO SHARE SOME PERCENTAGE OF MONEY RECOVERED IN CASES WHERE THEY HAD PROVIDED INFORMATION WHICH LED TO SUCH RECOVERIES.

•     HISTORY OF WHISTLE BLOWING IN INDIA

1.       WHISTLE BLOWER PROTECTION ACT .2014 IS AN ACT IN THE PARLIAMENT OF INDIA WHICH PROVIDES A MECHANISM TO INVESTIGATE ALLEGED CORRUPTION AND MISUSE OF POWER BY PUBLIC SERVANTS AND ALSO PROTECT ANYONE WHO EXPOSE ALLEGED WRONGDOING IN GOVERNMENT BODIES,PROJECTS AND OFFICES

2.       THE WRONGDOING MAY TAKE THE FORM OF FRAUD,CORRUPTION OR MISMANAGEMENT

3.       THE ACT WILL ALSO ENSURE PUNISHMENT FOR FALSE OR FRIVOLOUS COMPANIES

4.       THE ACT WAS APPROVED BY THE CABINET OF INDIA AS APART OF DRIVE TO ELIMINATE CORRUPTION IN THE COUNTRY’S BUREAUCRACY AND PASSED BY THE LOK SABHA ON 27/12/2011

5.       THE BILL WAS PASSED BY RAJYA SABHA ON 21 ST FEBRUARY 2014 AND RECEIVED THE PRESIDENT’S ASSENT ON MAY 2014

•     OBJECTIVE/INTENT

•     AN ACT TO ESTABLISH A MECHANISM TO RECEIVE COMPLAINTS RELATING TO DISCLOSURE ON NAY ALLEGATION OF CORRUPTION OR WILFUL MISUSE OF POWER OR WILFUL MISUSE OF DISCRETION AGAINST ANY PUBLIC SERVANT AND TO INQUIRE OR CAUSE AN INQUIRY INTO SUCH DISCLOSURE AND TO PROVIDE ADEQUATE SAFEGUARD AGAINST VICTIMIZATION OF THE PERSON MAKING SUCH COMPLAINTS AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO

•     THE CENTRAL VIGILANCE COMMISSION PLANS TO CREATE MORE AWARENESS ABOUT CORRUPTION

•     HAS PROVIDED ON THEIR WEBSITE : LODGE COMPLAINTS ONLINE

•     SALIENT FEATURES

1.       THE ACT SEEKS TO PROTECT WHISTLE BLOWERS

2.       ANY PUBLIC SERVANT OR ANY OTHER PERSON INCLUDING A NON GOVERNMENTAL ORGANIZATION MAY MAKE SUCH A DISCLOSURE TO THE CENTRAL OR STATE VIGILANCE COMMISSION

3.       EVERY COMPLAINT HAS TO INCLUDE THE IDENTITY OF THE COMPLAINANT

4.       THE VIGILANCE COMMISSION SHALL NOT DISCLOSE THE IDENTITY OF THE COMPLAINANT EXCEPT TO THE HEAD OF THE DEPARTMENT IF DEEMS NECESSARY. THE ACT PENALIZES ANY PERSON WHO HAS DISCLOSED THE IDENTITY OF THE COMPLAINANT

5.       THE ACT PRESCRIBES PENALTIES FOR KNOWINGLY MAKING FALSE COMPLAINTS

•     TYPES OF THE WHISTLE BLOWING

1.       INTERNAL WHISTLE BLOWING: REPORTS THE MISCONDUCT TO ANOTHER PERSON WORKING WITH IN THE PLACE OF THE WORK. HE EITHER APPROACHES ANOTHER EMPLOYEE OR INFORMS HIGHER MANAGEMENT ABOUT THE ISSUE OF THE CONCERN

2.       EXTERNAL WHISTLE BLOWING : DISCLOSING ISSUES OF CONCERN TO OUTSIDE INDIVIDUALS OR GROUPS SUCH AS REPORTERS ,PUBLIC INTEREST GROUPS OR REGULATORY AUTHORITY IS CALLED

3.       PERSONAL WHISTLE BLOWING: SITUATION WHEN THE WHISTLE IS BLOWN ON THE OFFEND PERSONALLY. ALLEGATION IS AGAINST INDIVIDUAL ONLY

4.       CURRENT WHISTLE BLOWING : BY THE PERSON WHO IS CURRENTLY WORKING IN THE ORGANIZATION

5.       ALUMNI WHISTLE BLOWING :DISCLOSING THE ILLEGITIMATE BEHAVIOR OR MISDEEDS IN THE ORGANIZATION UNDERTAKEN BY AN EMPLOYEE OF THAT ORGANIZATION IS KNOWN AS ALUMNI WHISTLE BLOWING,SOME ONE BLOWS THE WHISTLE ON  FORMER EMPLOYER/EMPLOYEE

6.       OPEN WHISTLE BLOWING : WHO IS BOLD WHISTLE BLOWER AND BRINGS INTO THE PICTURES CARRIED ON WITHOUT THE CONCEALING IDENTITY

7.       ANONYMOUS WHISTLE BLOWING :-WITHOUT DISCLOSING HIS AUTHORITY