This website uses cookies to ensure you have the best experience. Learn more

Whistle Blower Essay

1537 words - 7 pages

A person who discloses the misconduct and criminal activities occur in an organization is called the whistle-blower. Basing on the case, Cynthia Cooper who worked in WorldCom is a whistle-blower. The trip of being a whistle-blower started from 2002, when Cynthia realized the financial fraud in WorldCom. Without the help of the whistle-blower hotline process, she decided to unravel the fraud with her colleagues. However, she would never imagine how difficult it is. Whistle-blower hotlines are special procedures provided to employees or third parties for reporting misconduct and wrongdoing within the companies in a safe and anonymous way. Through ...view middle of the document...

Keeping a good reputation do not only attract customers but also get skillful staffs. In order to maintain a good image in the eyes of the public, the companies should avoid any illegal activities and fraud. In WorldCom's case, without the hotline process, the fraud could not be detected earlier by the management of WorldCom. It is too late to solve the fraud internally when Cynthia reported the issue to the audit committee chairman. The fraud was disclosed to the public and led to a significant impact on WorldCom's reputation. WorldCom faced the risk of bankruptcy at that moment. -Motivating staffs speak out their concern. As the result of the call can be made anonymously and secretly, the employees are encouraged to report the unethical activities without the fear of retaliation and termination of employment. In the case, the investigation which Cynthia carried out was already knew by her boss, Scott Sullivan and her boss were involved in the fraud. This caused tremendous resistance and pressure to Cynthia. She and other staffs were forced to continue the investigation at night. Without the help of whistle-blower hotline, Cynthia continued her research transparently, which may place herself in danger. Through the effective corporate whistle-blower hotlines, the businesses do not only create a culture of openness but also manage wrongdoing internally. Therefore, the way to run an effective corporate whistle-blower hotline becomes the primary concern for every business. Here are some assumptions on operating an efficient whistle-blower hotline: -Making sure the hotline process is reliable and complying with the Sarbanes-Oxley Act. The most important thing for an effective whistle-blower hotline process is the whistle-blower protection. The whistle-blowers are the sensitive people in the business and they will ensure the reliability of the process before they report the illegal activities. In order to let the whistle-blowers be confident in the hotline procedure and apart from the fear of retaliation, the personal data or reports should be kept 100% securely and the hotline process should be independently from the organization or the person that the whistle-blower complain about so that the influence on the reports caused by the interests and conflicts will be minimized. In addition, the whistle-blower hotlines also need to comply with the Sarbanes-Oxley Act. According to the section 806 and 1107 in the SOX, the whistle-blowers will be protected against discrimination and retaliation. Any retaliation caused by employers during the investigation is illegal and will be charged. Complying with the SOX is essential for an effective whistle-blower hotline. In the case, Cynthia's boss-Scott Sullivan played a major role in the fraud. Therefore, the hotline should be separately from Scott to avoid the impact of the outcomes caused by...

Find Another Essay On Whistle Blower

Whistle-blowing in Auditing Essay

2426 words - 10 pages Question 1 Introduction At the start of this century, unprecedented collapses of Enron and WorldCom have sparked heated world discussions over corporate whistle-blowing. In light of this, legislations and professional codes of conduct are implemented to provide framework on ethical and financial decision-making particularly for auditors. This essay covers prerequisites for an effective corporate whistle-blower hotline, measures to avoid

Wise Decision: Sherron Watkins Letter to Kenneth Lay

946 words - 4 pages . Was Sherron Watkins a whistle-blower or not? Explain your position. A whistle-blower is a person who exposes misconduct, alleged dishonest or illegal activity occurring in an organization. The alleged misconduct may be classified in many ways. For example, a violation of a law, rule, regulation and/or a direct threat to public interest, such as fraud, health and safety violations, and corruption. Whistleblowers may make their allegations


2012 words - 9 pages protection under the law, because they should not have to worry about any repercussions The act of being a whistle blower will always have repercussions. Both articles make valid points on whether or not they should be protected under the law. Three different ethical theories were presented and argue the points that they would make. It was decided that the Mill utilitarian point of view made the most sense. It makes sense to ensure the whistle blowers have protection under the law because the public has the right to be protected from potential harm.

A Look Inside The WorldCom Scandal

1024 words - 4 pages anonymous whistle-blower hotline, and help to institute audit standards. The establishment of a code of ethics would help employees throughout the company understand the difference between right and wrong. In WorldCom’s case, the lower level employees that allowed their superiors to intimidate them into adjusting figures may genuinely not have known that they were doing anything wrong. Robbins and Coulter (2009) say that a whistle-blower hotline

Edward Snowden: Political Martyr or Tyrant?

1895 words - 8 pages is a whistle-blower or a malefactor. According to Susan Milligan, a political and foreign affairs writer for U.S. News, a whistle-blower is a “dedicated employee who comes to realize that there is corruption… happening at his or her workplace” and takes appropriate action to do what is right. Snowden is not a whistle-blower because he “took an oath… to keep national secrets secret” he violated this oath, and went beyond the scope of a whistle

What Joe Darby Did

1265 words - 5 pages Which is more unethical, a soldier who has been under the stress of war and not fully trained for the job abusing enemy prisoners, another soldier who after seeing pictures of horrible prisoner abuse and becomes a whistle-blower or the Secretary of Defense leaking the name of a whistle-blower? That is the question I will look at in this paper. Being a part of a team or group is very important to most people, acceptance and friendship is

The Treatment of Whistleblowers

2056 words - 8 pages studies in this area support the notion that thing have gone awry. First, we shall look at the concept of whistleblowers Whistleblowers often make their way into the public eye, but what is a whistle blower exactly? What are the criteria? Whistle blowing is "raising the alarm in public about a wrong being committed in private" (Vickers, 2002, p.42). By definition, a whistle blower can only "blow the whistle" on an organization of which he is a

Biography of Edward Joseph Snowden

1215 words - 5 pages . This shows that the government have been unethical. If the government think they are doing the right thing then why would they want to stop doing that? In this case as I mentioned earlier there were two ways how people discussed the acts of snowden some people say it was ethical. I also support snowden in his whistle blowing act. Cooper says that in order to be a whistle blower, one has to break his/her loyalty towards the organization

Case Study Review

929 words - 4 pages insurance payments and keeping one million dollars for himself, most of which was stashed in his Manhattan apartment that he shared with his wife. Some of the money was funneled to politician’s campaigns, who then kept his nonprofit flush with government funding. The twenty year scheme is alleged to have skimmed five million dollars from the venerable charity. (Hawkins, 2013). The case was brought to light by someone known as a whistle-blower. A

The Business Software Alliance

885 words - 4 pages unlicensed software following an investigation by the a whistle-blower. The company was required to conduct a self-audit, which revealed unlicensed adobe, auto desk and Microsoft software. Reason for Whistle- Blowing The Bsa's online from for reporting software piracy anonymously is relatively straight for ward: along with name, address, size of the informant, industry sector, name of ceo and

Business Ethics

1817 words - 7 pages wants to be a whistle blower on the company that they are working for. According to Ralph Nader and his colleagues who wrote the book, Business Ethics in America, whistle blowing is, "the problem of the employee who publicly criticizes corporate policies because those policies may be dangerous to other parts of the community" (p.54). What has been learned is the willingness and ability of insiders to blow the whistle is the last line of

Similar Essays

Dr. Jeffrey Wigand: The Whistle Blower On The Brown And Williams Tobacco Corporation

1316 words - 5 pages Dr. Jeffrey Wigand is one of the most famous whistle blower’s in the United States. His testimony against the Brown and Williams Tobacco Corporation (B&W) revealed unethical tactics used to delude the American public against the cancer causing additives and the addictiveness of nicotine in tobacco. Wigand was born on December 17, 1942 in New York City. He was one of five children in a strongly devout Catholic family. His early childhood was

Problems Faced By Whistle Blowers Essay

2481 words - 10 pages With an aid of appropriate examples, discuss the problems that a whistle-blower is likely to have to consider in deciding whether or not to speak out. Whistle blowing is an attempt by a former or current employee of an organization to disclose illegality or any other wrongdoing in or by an organization. Whistle blowing can be divided into two types namely, internal and external whistle-blowing. When wrongdoing is reported to someone with a

Whistle Blowers Essay

1099 words - 4 pages that he had performed his duty as a citizen. All the above facts show us that Scott tried to do what was right for him and his society. As a whistle blower Scott knew the price he would pay for revealing this fact just like Stephen Bolsin After reviewing Stephen Bolsins¡¦ actions one can see why people become whistle blowers. First, Stephen brings attention to an injustice. The injustice involved the death of 29 babies and children in

State And Federal Systems Essay

981 words - 4 pages 90 days to make its determination (Faulkner, 2003).This is only for the those who work in or with the government; however what about those in the private sector? Currently 30 states have enacted "whistle-blower" statutes and Arizona is one of them. While these statutes vary from state to state they have three things in common. First, all of the statutes define which employees are protected public sector employees, e.g. employees working for an