Evaluating Government Support for External Whistleblowing

This essay delves into the effectiveness of government support for external whistleblowing, exploring arguments both for and against its impact. The introduction defines organizational misconduct and whistleblowing, setting the stage for a discussion on whether government incentives and legal protections effectively encourage the reporting of misconduct. Proposition 1 argues in favor of government support, highlighting monetary incentives, legal protections, and the effectiveness of external whistleblowing. Proposition 2 presents a counter-argument, suggesting that government support can negatively impact organizations and internal reporting systems. The conclusion synthesizes these viewpoints, emphasizing the importance of balancing external and internal whistleblowing mechanisms to foster ethical organizational practices.

Sustainability and Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
Proposition 1....................................................................................................................................3
Proposition 2....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Organisational misconduct can be defined as behaviour in and behaviour by organisation
that can be judged as transgress a line separating right conduct and act from wrong conduct. This
means that act that is illegal, unethical and socially irresponsible. In organisation those who
report such misconduct of the organisation to external agencies such as media or government are
known as whistle blowing and act of reporting to external agencies is known as whistle blowing.
This assignment will involve an argument that consists of arguments in favour of government’s
support for external whistle blowing effective or not. Effective is the one in which organisation
and individuals both get benefit or neither of the party get harmed.
Proposition 1
Yes. Government support for external whistle blowing is effective. Government is
offering monetary incentives to those reporting misconduct of the organisation. This is an
effective measure taken by the government to encourage whistle blowers to report misconduct
they have experienced or they have seen happening in the organisation. Many times external
whistle blowers do not report misconduct and there are many reasons for that. They may fear
losing job and being victim of any kind of misconduct if they report organisational misconduct.
Government support through financial means help individuals who report misconduct and an
effective way they benefit society (Nielsen, 2020). This is important that misconducts of the
organisation are reported to external agencies and government because doing this also help in
informing other organisations about some of the repercussions they can face if they are also
doing the same or other kind of misconduct.
It is important that government supports external whistle blowing because some of the
studies have found that external whistle blowing is more effective than internal whistle blowing.
This has been found that many of the organisations changed their practices resulting from their
disclosure.
Concerned with reporting of misconduct and effective of government support in this
many of the laws also have been enacted to encourage members. Followed by this whistle
blowers are also protected through the laws and number of government agencies that deal with

fraud and other corrupt practices of the organisation. Providing legal protection to whistle
blowers is important because legal protection protect whistleblowers from retaliation (Jeon,
2017). External whistle blowing laws encourage whistle blowing safer and foster a favourable
environment for whistle blowers who disclose misconduct of the organisation.
On this basis it can be considered that government is providing effective support for
external whistle blowing. Whistle blowing plays important role in reducing corruption and unfair
practices not in some organisation but in country organisations are operating. This means that
presence of independent, fair, strong, and effective laws and law enforcement agencies play
important role in reducing corruption and encouraging whistle blowers to report misconduct.
External whistle blowing is more effective than internal and this is why it is very important that
countries have laws to protect those who have reported misconduct. This on country level helps
in promoting fair organisational practices and strict adherence to laws and regulations because
organisations and individuals and groups are aware that it is easy to report their misconduct and
they can also not do anything to counter them because whistle blowers are protected (Dinc and
et.al., 2018). External whistle blowers many times do not get good treatment and find difficulty
in finding and getting employment and this is why these laws and regulations for their protection
can help them in avoiding these situations. On this basis and this situations suggests that
government support is effective in external whistle blowing this protect whistle blowers and
encourage people to report if they witness any incidence that is related to organisational
misconduct. Sarbanes-Oxley Act, U.S. Department of Labour (DOL) directly protect whistle
blowers who report violations of law and refuse to engage in any action made unlawful. The
Corporate and Criminal Fraud Accountability Act (CCFA) protects employee of those firms that
trade publically from retaliation if they report violation of any rule or regulation to the Securities
and Exchange Commission or any provision of federal law relating to fraud against shareholders.
Other than this Dodd-Frank Act proposed additional incentive for whistle blowers, according to
this rule whistle blowers whistle blowers who provides information that aid in recovery of over
$1 million can receive 10-30 percent of the amount (Scheetz and Wall, 2019). The belief behind
this is that monetary incentives will encourage those who observe any kind of misconduct will
come forward and government and legal agencies will be able to take suitable action, if this does
not possess scope of government involvement than in this situation organisation will change their
policies and practices and deal with misconduct.

Proposition 2
No. Government support for external whistle blowers is not effective. Government has
taken many actions and have developed many rules and regulations but this also contribute in
encouraging external whistle blowers. However this makes very negative impact on the
organisation and individuals in the organisation. Monetary benefits associated with external
whistle blowing encourage people to report issues and misconduct to external agencies and
government agencies and individual without reporting within the organisation. This means that
government agencies when offer monetary benefits and provide legal protection people avoid the
aspect of informing their organisation and their seniors (Lee and Fargher, 2018). However this
lead to another aspect that in case government is taking action and supporting whistle blowing in
this situation government support should focus on redirecting towards stronger incentive for
internal reporting. This means that government should ensure that people in case found any
misconduct then they should firstly inform organisation and report to organisational authorities
for that. Because many times when individual and group of individual when is involved in any
kind of misconduct that organisation and authorities in organisation are unaware, in this situation
they should firstly inform organisational authorities regarding this. This will avoid publicity of
organisational misconduct because this can harm goodwill and image of the organisation in
public and organisation gets involved in legal practices, which is also not right and desired for
organisation. other than this, organisations that have strong internal reporting system also does
not require external whistle blowing and government support for external whistle blowers
encourage whistle blowers to disclose issues and misconduct of the organisation to external
agencies and government agencies that can be reported within organisation. Support and focus
of the government to external whistle blowers also affect internal reporting system of the
organisation. External reporting and whistle blowing also affect employees and their can
endanger their employment and also affect their reputation as employer and this is also one of the
reason because which it becomes difficult for employees to get employment. External whistle
blowing also requires whistle blowers to have powerful and effective proof that they can present
to external agencies (Kenny, Vandekerckhove and Irfan, 2020). This means that even if the
employee or whistle blower is sure regarding some kind of misconduct happening around them
in absence of effective and powerful proof they will not be able to proof that they are right and
there is any kind of wrong and misconduct is happening. Many times people who are whistle

blowers are also considered to be disloyal for their organisation and this is also one of the
reasons that external whistle blowing is not effective and government supports intensify the
situation. In place of external whistle blowing if individual chose to report the misconduct
internally there is high possibility that organisation can consider the reporting even without
effective proof and work on identifying the fact, which is not possible in external whistle
blowing.
Support of government to improve internal reporting system and encourage internal
whistle blowing can positively affect both employee this means whistle blower as well as
employer or organisation. Effectiveness of internal reporting system and encouraging internal
whistle blowing also helps in ensuring that internal organisational concerns remain within
organisation (Chen, 2019). Government support to internal whistle blowing also enhances and
strengthens internal reporting and whistle blowing. Many of the times organisations face several
kinds of difficulties even when organisation and management is unaware about misconduct of
some selected people and group within organisation. This requires government to support
internal reporting and whistle blowing system rather than supporting external whistle blowers.
CONCLUSION
On the basis of above discussion it can be concluded that it is important that government
along with external whistle blowing also support internal whistle blowing. This is because
external whistle blowing and reporting misconduct to external agencies have several negative
impact and effects on the organisation and their image. This means that organisational
misconduct when are disclosed publically this effect image of the organisation. Government
when support internal whistle blowing this strengthen internal whistle blowing and reporting
system. However when internal organisation reporting fails and does not work in such situation
government should support and encourage external whistle blowing. External whistle blowing
also is useful and should be supported by government when whistle blowers cannot disclose and
report the misconduct to organisation and only option left to whistle blower is disclosing the
misconduct to organisation.

REFERENCES
Books and Journals
Chen, L., 2019. A Review of Research on Whistle-Blowing. American Journal of Industrial and
Business Management. 9(2). pp.295-305.
Dinc, M.S and et.al., 2018. Exploring predictors of internal, external and anonymous whistle-
blowing intentions: a quantitative analysis of accounting professionals. International
Journal of Applied Statistics and Econometrics. 1(1). pp.18-29.
Jeon, S.H., 2017. Where to report wrongdoings? Exploring the determinants of internal versus
external whistleblowing. International Review of Public Administration. 22(2). pp.153-
171.
Kenny, K., Vandekerckhove, W. and Irfan, M., 2020. Whistleblowing as escalating voice.
In Handbook of Research on Employee Voice. Edward Elgar Publishing.
Lee, G. and Fargher, N.L., 2018. The role of the audit committee in their oversight of whistle-
blowing. Auditing: A Journal of Practice & Theory. 37(1). pp.167-189.
Nielsen, R.P., 2020. Reformed National Security Internal Whistleblowing Systems and External
Whistleblowing as Countervailing Ethics Methods. Administration & Society. 52(5).
pp.660-689.
Scheetz, A.M. and Wall, J., 2019. Making Crime Pay: Timing of External Whistleblowing.
In Research on Professional Responsibility and Ethics in Accounting. Emerald
Publishing Limited.