Importance of Business Ethics in Government Sector

Question: Is Government Support for External Whistle-Blowing Effective? A number of laws have been enacted to encourage members of organizations to report misconduct. While most firms support internal reporting of misconduct through anonymous hotlines, many organizations are concerned about employees going public or reporting misconduct to the government. Whistle-blowers are protected through the Sarbanes-Oxley Act and a number of other government agencies that deal with fraud, stock trading, and corrupt practices. In 2010 the Dodd-Frank Act gave additional incentives for whistle-blowers. Whistle-blowers are encouraged to turn themselves in if they were part of a team or group that engaged in misconduct, and doing so could result in monetary rewards. Despite these incentives, whistle-blowers in general do not get good treatment and often have trouble finding employment after they report misconduct. It has also been found that companies with good internal reporting systems have fewer whistle-b lowers that report externally in an attempt to obtain rewards. This could be because employees feel that their concerns will be taken seriously and misconduct will be halted before it becomes a major problem. 1. Government support through financial incentives for reporting misconduct in organizations is effective and benefits society. 2. Government support of whistle-blowing should be redirected toward stronger incentives for internal reporting of misconduct, not external whistle-blowing that could be harmful to the individual. Answer: Benefits of Government incentives to external whistleblowers The security of the federal whistleblowers who report any misconduct in the agency to the government is assured by the Whistleblower Protection Act, 1986. The internal whistleblowers inform their supervisors about any illegal or unethical activities inside the organization. However, the external whistleblowers directly convey the information to the government. It is a matter of concern for the organizations as their internal activities go public but the government has complete support to these whistleblowers. Acts like Sarbanes-Oxley and other government acts were made to encourage the whistleblowers. They were given additional incentives according to the Dodd-Frank Act 2010. By doing this, Government ensures freedom of speech for them. These employees serve the public interest, and it is important that their organizations do not harass them. Any company should not do anything illegal to their employees as it damages the society too. Silence from the part of the sufferer, allow the w rongdoers to continue with it. Government enforcements would make the organizations take care of their employees. Importance of Government incentives to internal whistleblowers External whistleblowing exposes any unethical activity of the company to the government. The reputation of the organization is damaged forever as its internal activities are leaked. It does not leave any chance for future improvement too. Such can be prevented if Government encourages internal whistleblowing and not external whistleblowing. The government should give more incentives if an employee informs his organization before making it public. It would allow the organization to become aware and try to solve the situation. It ensures both organization's and individual's safety.