April 2nd, 2019
Most people believe they would do the right thing if they discovered the corporation they worked for was doing something illegal or unethical. The truth is, being the whistleblower can come with risks. You face the possibility of repercussions, such as being ostracized by your fellow employees or losing your job.
Formal Structure to Protect Whistleblowers Is Lacking
Few companies have a formal structure to support people who choose to disclose company problems. Most seem to prefer to keep things under wraps for fear of damaging the reputation of their business. In 2018, the EU took steps to strengthen the protections for whistleblowers from a legal standpoint and several other countries have followed suit, an action long overdue.
Whistleblowing Is Actually Good for Business
Studies have shown that the presence of an internal reporting system made to support whistleblowers was relative to a 6.9 percent drop in pending lawsuits. Plus, aggregate settlement amounts decreased by as much as 20.4 percent. Things that get swept under the rug tend to come out eventually, and when they do, they come out in a drastic way that can totally compromise a company’s ability to continue operation. There are numerous examples of this fact throughout history, such as Enron and Lehman Brothers, who both had early accounts of issues raised by whistleblowers that were initially ignored.
Even with formal reporting systems in place internally across some businesses, and more laws going into effect to protect whistleblowers, it can still be hard to be the one who stands up and says something is wrong. Reach out to us at The Whistleblower.com to get the support that you need to ensure your interests are protected when you decide it is time to speak up.