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Contemp Issues in HRM - Whistleblowing

http://www.youtube.com/watch?v=8n2OcGMr5zk (2:00-2:51)
by

Amit Bains

on 13 March 2013

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Transcript of Contemp Issues in HRM - Whistleblowing

WHISTLEBLOWING LEARNING OBJECTIVES Group 13

Amit Bains, Anna Kelly, Jamal Sido, James Anderson, Sally Lu Definition of whistleblowing

Types of whistleblowing

Reasons for whistleblowing

Consequences for the individual and organisation

Legislation and support functions

Whistleblowing and organisational culture "The disclosure by organisation members (former or current) of illegal, immoral or illegitimate practices under the control of their employers, to persons or organisations that may be able to effect action” [Near and Miceli, 1985] DEFINITION OF WHISTLEBLOWING TYPES OF WHISTLEBLOWING Internal - Informing relevant members within the organisation

External - Disclosing potential illegal or unethical activities or behaviour outside the organisation EXAMPLE OF WHISTLEBLOWING REASONS FOR WHISTLEBLOWING CHARACTERISTICS OF A WHISTLEBLOWER CRITERIA FOR JUSTIFIABLE WHISTLEBLOWING Thank You For Listening

Any Questions? WHISTLEBLOWING AND ORGANISATIONAL CULTURE De George (1986) established three moral principles Morally Prohibited “The most plausible and most commonly stated rationale for not blowing the whistle is given in terms of loyalty” [De George, 1986] Morally Permitted 1) If the unaddressed issue will cause harm to the public or employees

2) If the issue is reported to the immediate supervisor

3) If all internal procedures have been exhausted Morally Required 4) Documented evidence is available

5) Reasonable belief that positive results and success will be achieved Limitations

Lacks consideration towards personal impact of whistleblower
A focus on the effects of public disclosure
Restrictive
Does not consider individual differences In Internal vs. External Whistleblowing Internal - Should be encouraged by the company
External - Considered an ethical failure and disloyal What can HR and the organisation do to encourage internal whistleblowing? Contextual variables
Clarity
Supportability
Discussability
Sanctionability
[Kaptein, 2011] Morally compelled

Profitability or reward - control manager at GSK awarded £61m

Retaliation 'Tragic hero battling the system' [Grant, 2002]

Utilitarian ethics

Loyalty

Job satisfaction and job level [Meser-Magnus and Viswesvaran, 2005] CONSEQUENCES OF WHISTLEBLOWING
FOR THE INDIVIDUAL Personal impact Psychological
contract Future career
[Danekar, 1990] Financial difficulties,
divorce and suicide
[Fisher and Lovell, 2006] CONSEQUENCES OF WHISTLEBLOWING
FOR THE ORGANISATION Lower employee commitment
and performance 3% negative stock price reaction
[Bowen, Call and Raigopal, 2010] Damage to reputation
and image Fines –
Barclays and
Libor-fixing scandal Loss of customers and profitability CONSEQUENCES OF NOT WHISTLEBLOWING
FOR THE INDIVIDUAL Fear of management retaliation Emotional impact and
psychological withdrawal
[Miceli and Near, 1992] Reduction in job performance,
motivation and satisfaction Sacrificed personal ethical principles
[Sims and Keenan, 1998] CONSEQUENCES OF NOT WHISTLEBLOWING FOR THE ORGANISATION Lose of skillful employees Unpredictability of
employee actions Threat to organisational survival and
long-term success
[Baucus and Near, 1991] SUPPORT FUNCTIONS Sarbanes- Oxley Act (SOX) – USA Costly legal battles [Example from The Telegraph, February 2013] WHAT GARY WALKER DID He initially accepted the money, but recently blew the whistle to the media.

Stephen Dorrell, a former health secretary, says "we need to deliver a fundamental change in a culture which thinks this kind of practice is acceptable.” Group 13

Amit Bains, Anna Kelly, Jamal Sido,
James Anderson, Sally Lu Legal framework to promote responsible whistleblowing
Offer employees protection Public Interest Disclosure Act 1998 – UK
Charities - Public Concern at work You are aware of unsafe working conditions, which has potentially resulted in the deaths of 500 patients.

You internally blew the whistle, and have now been dismissed. To keep quiet the NHS have offered you £500,000.

If you speak out, you will be blacklisted and can't work in health services again and are subjected to any legal action

What would you do - refuse money and blow the whistle externally or accept the money and remain silent? [Cited in The Telegraph, February 2013] PEANUT CORP. VIDEO
Full transcript