The New Challenges

The Challenge of International Competition The Challenge of New Technologies The Challenge of Increased Quality The Challenge of Employee Motivation and Commitment The Challenge of Managing a Diverse Work Force The Challenge of Ethical Behaviour

Five Basic Values for Managerial Roles

Integrity Sensitivity Creative Thinking Confidence Service Mindedness
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What is Ethics?
Ethics is the study of virtue Dr. Jim Toner, AWC Ethics is the critical study of standards for judging the rightness or wrongness of conduct Barbara Whitehead Ethics is the name we give to our concern for good behavior Albert Schweitzer
3

What is Ethics
Ethics is NOT about the way things are It IS about the way things OUGHT to be

Ethics Defined
A study of the standards of conduct and moral behavior. A system or code of morals of a particular philosophy, religion, group, profession, etc. In other words, Ethics is about appropriate behavior, such as:
What is good and bad; Right and wrong. Moral duty and obligation; Principles and values.

Ethics and the law

Ethics
grey area

Law
6

Ethical People
An ethical person often chooses to do more than the law requires, and less than the law allows there is a difference between what you have a right to do, and what is right to do.

Defining morality, ethics and ethical theory

Morality is concerned with the norms, values and beliefs embedded in social processes which define right and wrong for an individual or a community. Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for any given situation. These rules and principles are called ethical theories.

The relationship between morality, ethics and ethical theory

Ethics rationalizes morality

to produce ethical theory

that can be applied to any situation.

Morality

Ethics

Ethical theory

Potential solutions to ethical problems

Why is ethics important?

1. 2. 3. 4. 5. 6. 7. 8. Power and influence of business in society Potential to provide major contribution to society Potential to inflict harm Increasing demands from stakeholders Lack of business ethics education or training Continued occurrence of ethical infractions Evaluating different ways of managing business ethics Interesting and rewarding
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Why act Ethically? (contd.)

The reasons for an organisation to be ethical include: To prevent harm to the general public, To build trust with key stakeholder groups, To protect themselves from abuse from unethical employees and competitors, To protect their own reputations, To protect their own employees, and To create an environment in which workers can act in ways consistent with their values.
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Overview
Locate the role of ethical theory Provide critical overview of traditional ethical theories Explore contemporary ethical theories

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What are normative ethical theories?

Ethical theories are the rules and principles that determine right and wrong for any given situation Crane and Matten (2007) Normative ethical theories are those that propose to prescribe the morally correct way of acting As opposed to descriptive ethical theories which seek to describe how ethics decisions are actually made in business
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The role of ethical theory

 Two extreme positions (De George 1999)  Ethical absolutism claims there are eternal, universally applicable moral principles  Right and wrong are objective qualities that can be rationally determined  Typically traditional ethical theories  Ethical relativism claims morality is context dependent and subjective  No universal right and wrongs that can be rationally determined & depends on person making the decision and culture in which they are located  Typically contemporary ethical theories
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Traditional ethical theories

 Generally offer a certain rule or principle which one can apply to any given situation  These theories generally can be differentiated into two groups

Motivation/ Principles

Action

Outcomes

Non-consequentialist Ethics Consequentialist Ethics

Source: Crane and Matten (2007) 15

Egoism
 Theory of egoism - an action is morally right if the decision-maker freely decides in order to pursue either their (short-term) desires or their (long-term) interests. Adam Smith (1793) pursuit of individual interest morally acceptable through invisible hand of market as creates benefit for all
 Relies on free competition & good information  Enlightened egoism  However, markets do not function perfectly

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Major Philosophical Ethical Principles

Teleological Approaches: Utilitarian Theory (J. Bentham and J.S. Mill) Greatest benefits for the Largest Number Utilitarianism raises important considerations that must be accounted for in any decision matrix, such as:  Any decision must be impartial, treating each person equally, not no more than equally  Ideally, no decision is acceptable that increases harms of any sort, even to a small number of people  An ideal decision is one that maximizes the pleasures, preferences, desires, interest or well being of the greatest 17 number

Major Philosophical Ethical Principles (Contd.)

Teleological Approaches (Contd.) Distributive Justice (J Rawls) Equality of Burden and Benefit  It requires treating similar cases similarly and treating persons as equals except when they have relevant differences. Justice is ordinarily synonymous with fairness, requirement of consistency, equity, and impartiality Retributive Justice Compensatory Justice

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Act- and Rule-Utilitarianism

Act utilitarianism looks to single actions and bases the moral judgement on the amount of pleasure and the amount of pain this single action causes.

Rule utilitarianism looks at classes of action and ask whether the underlying principles of an action produce more pleasure than pain for society in the long run.

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Problems with Utilitarianism

 Subjectivity  Led to refinement of theory Act utilitarianism Rule utilitarianism  Problems with quantification  Distribution of utility

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Major Philosophical Ethical Principles (Contd.)

Deontological Approach:
Universalist Theory (Emamuel Kant) Similar Decision by Everyone in Similar Circumstances  Rule Based Morality  The best moral choices are those that you want others to do, even when you cannot make yourself an exception, and that, respect others as persons

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Major Philosophical Ethical Principles (Contd.)

Deontological Approach (Contd.)
Universalist Theory (Contd.)  Rule Based Morality (Contd.)  The following kinds of questions can be asked when deciding what action to take:  Does the action set positive or negative precedents?  Is it an actions that is acceptable to other reasonable persons?  Is it applicable to other similar situations?  Does it respect or at least does not denigrate human dignity?
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Major Philosophical Ethical Principles (Contd.)

Deontological Approaches (Contd.)
Universalist Theory (Contd.)  Some commonly held moral rules include:  Non Malevolence (avoid harming others)  Keep promises, honor contracts  Respect persons and their rights  Mutual aid (for ones family and/or community etc)  A Rights Approach Everyone should be entitled to realize the following: Right to Life Right to Liberty Right to personal respect

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Problems with ethics of duties

Undervaluing outcomes Complexity Misplaced optimism?

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Major Philosophical Ethical Principles

Virtue Ethics (Contd.)  Four Cardinal Virtues:  Courage  Justice  Temperance  Wisdom

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Major Philosophical Ethical Principles (Contd.)

Virtue Ethics (Contd.)  Seven Contrary Virtues:  Humility  Kindness  Abstinence  Chastity  Patience  Liberality  Diligence Pride Wrath Gluttony/Greed Lust Wrath Avarice Envy Sloth
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Major Philosophical Ethical Principles (Contd.)

Virtue Ethics (Contd.)  Practicing these is said to protect one against temptation towards the negative behaviors represented by:  Pride (Vanity)  Avarice (Covetousness or Greed)  Lust  Wrath  Gluttony  Envy  Sloth
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Typical Perspective

Ethical Dilemma Lens of ethical theory

Single normative consideration for solving the ethical dilemma

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Pluralistic Perspective

Ethical dilemma Prism of ethical theories Variety of normative considerations in solving the ethical dilemma
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Considerations in making ethical decisions: key insights from ethical theories

Consideration
Ones own interests

Typical question you might ask yourself

Is this really in my, or my organizations, best long-term interests? Would it be acceptable and expected for me to think only of the consequences to myself in this situation? If I consider all of the possible consequences of my actions, for everyone that is affected, will we be better or worse off overall? How likely are these consequences and how significant are they? Who do I have obligations to in this situation? What would happen if everybody acted in the same way as me? Am I treating people only to get what I want for myself (or my organization) or am I thinking also of what they might want too? Whose rights do I need to consider here? Am I respecting fundamental human rights and peoples need for dignity?

Theory
Egoism

Social consequences

Utilitarianism

Duties to others

Ethics of duty

Entitlements of others

Ethics of rights
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Main factors in deciding the moral status of a situation

 Decision likely to have significant effects on others  Decision likely to be characterised by choice, in that alternative courses of action are open  Decision is perceived as ethically relevant by one or more parties

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Why Ethical Decisions are Difficult?

Facts and Values Knowledge of consequences is limited Multiple corporate constituencies Ethical Standards are variable (time, place, situation) Human Imperfection Competition

Technology

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Stages in ethical decision-making

Ethical decision-making process

Recognise moral issue

Make moral judgement

Establish moral intent

Engage in moral behaviour

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Ethical Decision Making and Ethical Leadership

Ethical Issues and Intensity

Individual Factors

Business Ethics Evaluations and Intentions

Ethical or Unethical Behavior

Organizational Factors

Opportunity
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Ethical Decision Making and Ethical Leadership (Contd.)

Ethical Issue Intensity reflects the ethical sensitivity of the individual or work group that faces the ethical decision making process. All other factors including individual factors, organizational factors, and intentions determine why different individuals perceive ethical issues differently Individual Factors  Education  Nationality  Age  Locus of Control
35

Ethical Decision Making and Ethical Leadership (Contd.)

Organizational Factors  The context: Leadership, Organization Climate, Structure and Societal Environment  Organizational Structure has following strongly related dimensions:  The structure of monetary and non monetary rewards  The performance-evaluation, monitoring, and control processes for individual and business units  The system of portioning and assigning decision-making rights and responsibilities to workers, including job design and the level of empowerment
36

Ethical Decision Making and Ethical Leadership (Contd.)



Opportunity: This describes the conditions in an organization that limit or permit ethical or unethical behavior (rewards and punishment system)

37

Framework for understanding ethical decision-making

Individual factors

Recognise moral issue

Make moral judgement

Establish moral intent

Engage in moral behaviour

Situational factors
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Individual influences on ethical decision-making

Factor Age and gender National and cultural characteristics Influence on ethical decision-making Very mixed evidence leading to unclear associations with ethical decision-making. Appear to have a significant effect on ethical beliefs, as well as views of what is deemed an acceptable approach to certain business issues. Somewhat unclear, although some clear differences in ethical decision-making between those with different educational and professional experience seem to be present. y y Small but significant effect on ethical decisionmaking. At most a limited effect on decision-making, but can be important in predicting the apportioning of blame/approbation. 39

Education and employment

Psychological factors: y y Cognitive moral development Locus of control

Individual influences on ethical decision-making

Factor Personal Values Influence on ethical decision-making Significant influence some empirical evidence citing positive relationship. Significant influence likely, but lack of inclusion in models and empirical tests. A new issue for inclusion with considerable explanatory potential.

Personal integrity

Moral imagination

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Psychological factors
 Cognitive moral development (CMD) refers to the different levels of reasoning that an individual can apply to ethical issues and problems  3 levels (details next slide)  Criticisms of CMD Gender bias Implicit value judgements Invariance of stages  An individuals locus of control determines the extent to which they believe that they have control over the events in their life
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Stages of Moral Development (Kohlberg)

Pre- Conventional Morality 1. Obey to avoid punishment 2. Conform to obtain rewards Conventional Morality 1. Conforming to group norms 2. Conforming to law and order Post- Conventional Morality 1. Principled Morality (autonomous and responsible) 2. Universal Morality (conform to avoid self condemnation)
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Situational influences on decisionmaking

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Situational influences on ethical decision-making

Type of factor Factor Influence on ethical decision-making

Issue-related

Moral intensity Moral framing

Reasonably new factor, but evidence suggests significant effect on ethical decision-making. Fairly limited evidence, but existing studies show strong influence on some aspects of the ethical decision-making process, most notably moral awareness. Strong evidence of relationship between rewards/punishments and ethical behaviour, although other stages in ethical decisionmaking have been less investigated. Good general support for a significant influence from immediate superiors and top management on ethical decisionmaking of subordinates.
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Rewards Contextrelated Authority

Situational influences on ethical decision-making

Type of factor Factor Influence on ethical decision-making

Bureaucracy Contextrelated

Significant influence on ethical decision-making well documented, but actually exposed to only limited empirical research. Hence, specific consequences for ethical decisionmaking remain contested. Some influence likely, but lack of empirical evidence to date.

Work roles

Organizational Strong overall influence, although implications of relationship culture between culture and ethical decision-making remain contested. National Context Limited empirical investigation, but some shifts in influence likely.

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Systems of reward
 Adherence to ethical principles and standards stands less chance of being repeated and spread throughout a company when it goes unnoticed and unrewarded  What is right in the corporation is not what is right in a mans home or in his church. What is right in the corporation is what the guy above you wants from you. Thats what morality is in the corporation (Jackall, 1988:6)
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Authority and Bureaucracy

Bureaucracy Bureaucracy has a number of negative effects on ethical decisionmaking Suppression of moral autonomy Instrumental morality Distancing Denial of moral status
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Authority People do what they are told to do or what they think theyre being told to do

How ethical decisions are justified: Rationalization tactics

Strategy Denial of responsibility Description Examples The actors engaged in corrupt behaviours What can I do? My arm is being perceive that they have no other choice than twisted. to participate in such activities. It is none of my business what the corporation does in overseas bribery. No one was really harmed The actors are convinced that no one is It could have been worse. harmed by their actions; hence the actions are not really corrupt. The actors counter any blame for their They deserved it. actions by arguing that the violated party They chose to participate. deserved whatever happened. You have no right to criticise The actors assume two practices that moderate the salience of corrupt behaviour: us. Others are worse than we are. 1. Condemn the condemner, 2. Selective social comparison.
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Denial of injury

Denial of victim

Social weighting

How ethical decisions are justified: Rationalization tactics

Strategy Appeal to higher loyalties Description Examples

The actors argue that their violation of We answered to a more norms is due to their attempt to realize a important cause. higher-order value. I would not report it because of my loyalty to my boss. The actors argue that they are entitled to indulge in deviant behaviours because of their accrued credits (time and effort) in their jobs. Its all right for me to use the internet for personal reasons at work. After all, I do work overtime.

Metaphor of the ledger

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Four Rationalizations for Unethical Behavior

A Belief that the Activity is within reasonable Ethical and Legal Limits, that it is not Really Illegal or Immoral A Belief that the Activity is in the individuals or the organizations best interest that the individual would somehow be expected to undertake the Activity A Belief that the Activity is Safe because it will never be found out or publicized A Belief that because the Activity helps the organization, the organization will condone it and even protect the person who engages in it
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Three Qualities of Ethical Leadership

1. Character 2. Knowledge 3. Action

51

Ethical Leadership

52

Principles of Ethical Leadership

Ethics - is central to
leadership because of:
The process of influence The need to engage followers to accomplish mutual goals The impact leaders have on establishing the organizations values

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Principles of Ethical Leadership

Treating others as ends (their own goals) rather than as means (to leaders personal goals)

Respects Others Leader behaviors:

Leader shall:
Treat other peoples values and decisions with respect Allow others to be themselves with creative wants and desires Approach others with a sense of unconditional worth and value individual differences

Listens closely to subordinates Is empathic Is tolerant of opposing viewpoints

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Principles of Ethical Leadership

Follower-centered - Based on the altruistic principle of placing followers foremost in the leaders plans Serves Others
Leader behaviors  Leaders have A duty to help others pursue their own legitimate interests and goals To be stewards of the organizations vision; in serving others they: clarify, nurture, and integrate the vision with, not for, organization members An ethical responsibility to make decisions that are beneficial to their followers welfare

Mentoring behaviors Empowerment behaviors Team building behaviors Citizenship behaviors

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Principles of Ethical Leadership

Ethical leaders are concerned with issues of fairness and justice; they place issues of fairness at the center of their decision making Shows Justice Leaders shall
adhere to principles of distributive justice Leader behaviors
All subordinates are treated in an equal manner In special treatment/special consideration situations, grounds for differential treatment are clear, reasonable, and based on sound moral values
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Principles of Ethical Leadership

57

Principles of Ethical Leadership

Honest leaders are authentic but also sensitive to the feelings and attitudes of others Manifests Honesty Leaders:
Are not deceptive Tell the truth with a balance of openness and candor while monitoring what is appropriate to disclose in a particular situation

Leader behaviors
Dont promise what you cant deliver Dont suppress obligations Dont evade accountability Dont accept survival of the fittest pressures Acknowledge and reward honest behavior in the organization

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Principles of Ethical Leadership

Concern for common good means leaders cannot impose their will on others; they search for goals that are compatible with everyone. Builds Community
Leader behaviors

Ethical Leaders & Followers

 take into account purposes of everyone in the group, and  reach out beyond their own mutually defined goals to wider community

Takes into account purposes of everyone in the group Is attentive to interests of the community and culture Does not force others or ignore intentions of others

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CLASIC ETHICAL CONFLICTS Short term vs. Long term Principle vs. Expediency Self interest vs. Others Conflicting Loyalties

60

Leadership and Ethical Decisions

Strong ethical leadership is characterized by the following:  Strong personal character  Passion to do right  Proactive  Considers stakeholders interest  Ethical leaders are role models for the organizations values  Ethical leaders are transparent and actively involved in decision making  They take a holistic view of the organizations ethical culture

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The Role of Leadership in Developing an Ethics Program

Conduct a rigorous self assessment of the organizations values and its existing ethics and compliance program Maintain commitment from top managers Publish, post and make quotes of ethics available and understandable Communicate Ethical Standards through multiple channels Provide timely training to reinforce knowledge Ensure consistent implementation Monitor and assess using appropriate methods Revise and reform to ensure continuous improvement
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Root Causes of Misconduct

Corporations are viewed not merely as profit making entities but also as moral agents that are accountable for their conduct to their employees, investors, suppliers and customers. A corporate culture without values and appropriate communication about ethics can facilitate individual misconduct

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Root Causes of Misconduct

Source: KPMG Forensic Integrity Survey 2005-06

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Foundation Principles of Ethics

Exercise Due Care Confidentiality Fidelity to special responsibilities Avoidance of appearance of Conflict of Interest Willing compliance with the law Acting in good faith in negotiation Respect for human well being Respect for liberty and constitutional rights of others
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MAN- agerial Effectiveness

VALUES SYSTEM

PURE MIND

Self to SELF (1)

Dis and Re- Theory of identification Guna (2) Dynamics (3)

Theory Theory of Theory of of Samskaras Method Karma and Work (5) (4) (6)

Giving Model of Motivation (7)

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Five Basic Values for Managerial Roles

Integrity Sensitivity Creative Thinking Confidence Service Mindedness
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The Man in the Glass

When you get what you want in your struggle for self And the world makes you king for a day Just go to the mirror and look at yourself And see what that man has to say. For it isn't your father, or mother, or wife Whose judgment upon you must pass The fellow whose verdict counts most in your life Is the one staring back from the glass. He's the fellow to please never mind all the rest For he's with you, clear to the end And you've passed your most difficult, dangerous test If the man in the glass is your friend. You may fool the whole world down the pathway of years And get pats on the back as you pass But your final reward will be heartache and tears

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If you've cheated the man in the glass

69

The Case of the Willful Whistleblower

70

Whistle blowingWhat it implies

71

Whistleblowers
A whistleblower is a person who alleges misconduct Most whistleblowers are Internal whistleblowers, who report misconduct to a fellow employee or superior within their company. External whistleblowers, however, report misconduct to outside persons or entities like Media 72 Whistle blowing is a strong means to deter

Whistleblowers
However, when this right is abused, whistleblowers can become as unethical as the company that they are blowing the whistle on Ideas about whistleblowing vary widely from whistleblowers being seen as selfless martyrs for public interest and organizational accountability; to 'dobbers' or "snitches" , solely pursuing personal glory and fame
73

The Case
Fairway Electric is among the most reputed companies in US market for building nuclear power plants Jim Bower, loyal employee of Fairway Electric, accidentally comes across an old Fairway report regarding a flaw in the design of the Radon II reactor While it didn t amount to a safety hazard, the flaw would ve resulted in additional costs for 74 customers

The Case (continued)

Jim brings the issue to the notice of his boss Bob, who turns to the CEO Ken Deaver Ken tells Bob to blow off the issue Jim then takes matters into his own hand and anonymously reports the issue to the media This results in a public outcry and damages the reputation of the company Jims peers say they dont wish to work with him At the end there is a talk of transfer/firing Jim 75

Case Analysis

The case has been analyzed from three vantage points: That of each individual in the case, The organization Fairway Electric, And the society and the impact on it.
76

77

Jims perspective
Jim has been with Fairway for many years and is proud of the clean reputation his company enjoys He is shocked by the report of the structural flaw and the fact that Fairway decided to keep it under wraps for so long He feels morally obligated to make the issue public for the sake of the customers who suffered on account of the flaw 78

Analysis
Jim is a sincere and honest employee who is also a great performer Although he is loyal to the organization, he also realizes his responsibility towards the society He couldn t stand the idea of duping the customers for the organization s gain He did give a chance to the top management to come clean and was forced to take a drastic step when nothing was done He couldn t standby and see that nothing was 79 being done about the whole scandal He is highly disturbed by the sale of flawed

Kens perspective
The CEO says that at the time the flaw was identified, Fairway was just one of the many companies trying to attain a foothold in the competitive market Fairway had already sold the design to many clients when the results of the report came out Since there was no safety hazard involved, and the entire division stood to go down if the flaw was reported, Fairway decided to go ahead with the designs and deliver as promised 80 Ken felt there was nothing to be gained by making the old issue public now and in fact,

Analysis
Ken had a very myopic view of the situation He failed to see the implications of risking the long established clean reputation of Fairway He was blinded by profit motive and failed to take into account the stakeholder s benefit 81 Ken had covered up the issue when it actually happened, but he even failed to

Bobs perspective
Bob could understand the point of view of both Jim and the CEO, Ken He had been with Fairway for over 8 years and had great faith in the company He decided to go ahead with Ken s decision and push his own inhibitions concerning ethical implications of the issue aside
82

Analysis
Bob was a reasonable man, but was more practical than passionate He failed to pursue what he believed and went along with Ken s decision His relationship with Ken and his reliance on his judgment, made him unable to see the situation objectively He also didn t fulfill his responsibility towards Jim as his superior and failed to assume charge for the matter 83

Ethical Issues

84

Ethical Issues
The most important ethical aspect was that the customers were kept in the dark about the structural flaw even when Fairway became aware of it The additional costs resulting from the flaw would not be borne by the company but by the customers and the rate payers Ken s reaction to Jim s discovery was not to support Jim or address Jim s strong outburst directly, but to hush up the entire matter as 85 soon as possible

Ethical Issues
The identity of the whistle-blower was not kept confidential and became common knowledge to everyone in the company No attempt was made to make the situation easier for Jim, instead Ken directs Bob to transfer Jim to another division to avoid any problems
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87

Impact on Organization
Employees following unethical practices caught and actions can be taken on them Companies having sound whistle blower policy are fined much less in case of any stray event happening Employees prefer using internal channel to highlight the problem than taking it to outside media Increased employee satisfaction as all instances of neglect is noticed and acted

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Impact on Society
Whistle blowing can often bring to light issues which are of great significance to society. This holds especially true for companies operating in industries like pharmaceuticals, flaws in which are unacceptable Apart from this, companies have a responsibility towards society, to deliver 89 products that arent flawed Having a whistleblower policy framework

What Bob should have done

Being fully aware of the possible fallout of the issue being made public and impact on sales and reputation, attempts shouldve been made to mitigate the same Bob shouldve been more sensitive to Jim throughout the ordeal After listening to Kens point of view, Bob shouldve explained the entire story to Jim Together they should have gone over all 90 possible courses of actions and the costs and benefits involved in each one

What Bob should have done

After this analysis, they should ve decided the proper course of action for the long-term From an ethical point of view, the clients who suffered should ve been reinbursed for the money they spent in fixing the design flaw, while at the same time minimizing damage to existing employees Bob should ve convinced Ken to try to make the report public in the best possible way, such that there was minimum damage to the company 91 Clauses should be integrated into the company

Improvements in Fairway policies

Clauses should be introduced in the company policy regarding confidentiality of the whistleblower and should be strictly implemented Checks and balances for protecting the whistleblower against harassment, in case the identity does become known Company should also introduce checks against fraudulent whistleblowers The policy should include the whistleblower having to reveal his identity to at least one person so that further investigations can be 92 carried out if required

93

Why Do Employees go out with the information

Due to fear of retribution from the employer The potential for a cover-up if the organization is alerted to the problem Failure of the employer to act upon previous complaints. For personal and financial gain
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What organizations can do to keep whistle blowing inside

Establish staff confidence that their issues will be taken seriously by management A clear and well-communicated antiretribution policy Staff involvement in the development of policies relating to whistleblowing Offering prompt and continuous responses to internal complaints 95 Promote organization's code of conduct

Government regulations for Whistle Blowers

India
Clause 49 of the Listing Agreement-provides for a non-mandatory requirement for all listed companies to establish a mechanism called 'Whistle Blower Policy' for employees to report to the management instances of unethical behaviour, actual or suspected, fraud or violation of the Company's code of conduct or ethics policy. For public sector The CVC shall, as the Designated Agency, receive written complaints or disclosure on any allegation of 96 corruption or of mis-use of office by any employee of the Central Government or of any corporation

Government regulations for Whistle Blowers

UK
Public Interest Disclosure Act (PIDA) -- supported almost unanimously -grants virtually blanket protection to whistleblowers in private, public, and nonprofit organizations. It encourages arid shields whistleblowers who, with good reason, voice their concerns outside the organization. UK s Office of Fair Trade (The British watch dog) offers as much as 100,000 for information leading to the discovery and dismantling of illegal corporate cartels

US
The Corporate and Criminal Fraud Accountability Act is part of the Sarbanes-Oxley Act of 2002-protects employees of publiclytraded corporations from retaliation for reporting alleged 97 violations of any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating

Whistle Blower Policy-Some Examples

Whistle Blower Policy for Tata Companies
" Reporting Concerns Every employee of a Tata Company shall promptly report to the management any actual or possible violation of the Code or an event he becomes aware of that could affect the business or reputation of his or any other Tata Company."

Murugappa group
To provide employees, customers and vendors an avenue to raise concerns, in line with E.I.D.- Parry (India) Limited s commitment to the highest possible standards of ethical, moral and legal business conduct
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Government of Illinois

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Some Notable Whistle Blowers in History

Ingvar Bratt, a former Bofors engineer who revealed himself as the anonymous source in the Bofors Scandal about illegal weapon exports. An act that led to a new Swedish law concerning company secrets which commonly is referred to as Lex Bratt. Satyendra Dubey, who accused employer NHAI of corruption in highway construction projects in India, in letter to Prime Minister Atal Behari Vajpayee. Assassinated on November 27, 2003. Enormous media coverage following his death may lead to Whistleblower Act in India Jeffrey Wigand, a former executive of Brown & Williamson who exposed his company's practice of intentionally manipulating the effect of nicotine in cigarettes on the CBS news program 60 Minutes. Famously known as the man who blew the whistle on 100 Big Tobacco and almost single-handedly revealed the health dangers of smoking to the public.