Dodd-Frank Act and other recent developments related to whistle

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Vlaams Netwerk Integriteit, Brussels, 29 March 2011
University of Surrey, 30 March 2011
Five Paradoxes in Managing Whistle‐blowing
Dr Wim Vandekerckhove
W.Vandekerckhove@gre.ac.uk
University of Greenwich Business School
1. Whistle‐blowing procedures work in organizations that do not need them.
Whistle‐blowing procedure
Early correction: little effort
Implementation risks
Necessary cultural conditions
(c) Wim Vandekerckhove March 2011
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1. Whistle‐blowing procedures work in organizations that do not need them.
Necessary cultural conditions
Concern rather than allegation
,
e
s
Open communication e
h
t
t
t
about operation of whistle‐
i
e
e
d
e
m
Trust among employees
e
blowing channel
u
n
o
t
y
o
If n
Raise with person directly o
d
u
before using procedure
Risk management culture
Yo
Trust towards management
Examples of successful whistle‐blowing
Employees involved in design and review of procedure
(c) Wim Vandekerckhove March 2011
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2. Anonymous channels are what whistle‐
blowers want, not what they need.
Across cultures (Park et al 2008): internally, through formal channels, and anonymously
?
Successful also means wrongdoing stopped
?
Best protection
(c) Wim Vandekerckhove March 2011
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2. Anonymous channels are what whistle‐
blowers want, not what they need.
Successful whistle‐blowing
Safe
Effective
Wrongdoers guess
Others experience reprisals (PCaW 2011)
You had already told someone else
Anonymous reports are perceived as less credible
(Hunton & Rose 2011)
Less resources are allocated to investigate
(c) Wim Vandekerckhove March 2011
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3. The easiest wrongdoing to stop,
is the hardest to blow the whistle on.
Based on Bjørkelo et al (2010) (c) Wim Vandekerckhove March 2011
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3. The easiest wrongdoing to stop,
is the hardest to blow the whistle on.
• Skiveness & Trygstad (2010)
Norway has strong unionization
• Near & Miceli (1995)
The more crucial the wrongdoing is for the survival of the organization, the less likely whistle‐blowing will be successful
(c) Wim Vandekerckhove March 2011
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4. Procedures acknowledge the right to blow the whistle, but they imply a duty to do so.
Crisis: people ‘on the work floor knew’
Judgment r
a
Moral autonomy
fe
Raising concern
(c) Wim Vandekerckhove March 2011
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4. Procedures acknowledge the right to blow the whistle, but they imply a duty to do so.
(Tsahuridu & Vandekerckhove 2008, Vandekerckhove & Tsahuridu 2010a)
T1
No procedure
Fear
T2
implement procedure
T3
procedure
Unrealistic right
Make right realistic
Silence is wrong
(c) Wim Vandekerckhove March 2011
Liability
9
5. Whistle‐blowing to correct wrongdoing often leads to wrongdoing.
• Near et al (2004): less reporting about unfair discrimination – because nothing gets done about it.
• Brown (2008): whether or not it makes a difference is more important than whether or not I risk something.
• Organizational cooperation must go on !
(c) Wim Vandekerckhove March 2011
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5. Whistle‐blowing to correct wrongdoing often leads to wrongdoing.
Communication
Strengthen Organizational Culture
Source: Vandekerckhove & Tsahuridu (2010b)
(c) Wim Vandekerckhove March 2011
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Whistleblowing Cycle Wrongdoing
Whistle‐
blowing
(Vandekerckhove & Tsahuridu 2010b)
Response to whistle‐blowing
(c) Wim Vandekerckhove March 2011
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References
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Bjørkelo, B, Einarsen, S, Nielsen, M B & Matthiesen, S B (2010). ‘Silence is golden? Characteristics and experiences of self‐
reported whistleblowers’, European Journal of Work and Organizational Psychology, DOI 10.1080/13594320903338884.
Brown, A. (2008). Whistleblowing in the Australian Public Sector, ANU E Press.
Hunton, J E & Rose, J M (2011). ‘Effects of Anonymous Whistle‐Blowing and Perceived Reputation Threats on Investigations of Whistle‐Blowing Allegations by Audit Committee Members’, Journal of Management Studies 48:1, 75‐98.
Near, J P & Miceli, M P (1995). ‘Effective Whistle‐Blowing’, Academy of Management Review 20(3), 679‐708.
Near, J P, Rehg, M T, Van Scotter, J R & Miceli, M P (2004). ‘Does Type of Wrongdoing Affect the Whistle‐Blowing Process?’, Business Ethics Quarterly 14(2), 219‐242.
Park, H, Blenkinsopp, J, Oktem, M & Omurgonulsen, U (2008). ‘Cultural Orientation and Attitudes Toward Different Forms of Whistleblowing: A Comparison of South Korea, Turkey, and the U.K.’ Journal of Business Ethics, 82(4), 929‐939.
Public Concern at Work (2011). Personal communication.
Skivenes, M & Trygstad, S C (2010). ‘When whistle‐blowing works: The Norwegian case’ Human Relations 63(7), 1071‐1097.
Tsahuridu, E.E. & Vandekerckhove, W. (2008). ‘Whistleblowing and Moral Autonomy in Organisations’ Journal of Business Ethics 82(1), 107‐118.
Vandekerckhove, W. & Tsahuridu, E.E. (2010a). 'Risky Rescues and Whistleblowing', Journal of Business Ethics 97(3), 365‐
380.
Vandekerckhove, W & Tsahuridu, E E (2010b). ‘Next please!, or why we should focus our research on the whistle‐receiver instead of the whistle‐blower’. Paper presented at ICAP 2010, Melbourne, July 2010.
(c) Wim Vandekerckhove March 2011
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