WhistleblowingWhistleblowing

"Our lives begin to end the day we become "Our lives begin to end the day we become silent about things that matter." silent about things that matter."

-Martin Luther King, Jr.-Martin Luther King, Jr.

OverviewOverview

What is Whistleblowing?What is Whistleblowing? When and how to blow the whistleWhen and how to blow the whistle RisksRisks StatisticsStatistics Ethical DilemmaEthical Dilemma Case Study: Challenger DisasterCase Study: Challenger Disaster 2002: The Year of the Whistleblower2002: The Year of the Whistleblower

What is Whistleblowing?What is Whistleblowing?

Whistleblowing is…Whistleblowing is… 'raising concerns about misconduct within an 'raising concerns about misconduct within an

organization or within an independent structure organization or within an independent structure associated with it' associated with it'

(Nolan Committee on Standards in Public Life)(Nolan Committee on Standards in Public Life)

'bringing an activity to a sharp conclusion as if by the 'bringing an activity to a sharp conclusion as if by the blast of a whistle' blast of a whistle'

(Oxford English Dictionary)(Oxford English Dictionary)

'giving information (usually to the authorities) about 'giving information (usually to the authorities) about illegal and underhand practices‘ illegal and underhand practices‘

(Chambers Dictionary)(Chambers Dictionary)

When to Blow the WhistleWhen to Blow the Whistle

Knowledge of inappropriatenessKnowledge of inappropriateness Making proprietary software available to publicMaking proprietary software available to public Back door/booby-trap in codeBack door/booby-trap in code Embezzlement or redirection of fundsEmbezzlement or redirection of funds

Bad claimsBad claims Unrealistic date projectionUnrealistic date projection Advertising hypeAdvertising hype

Knowledge of impending doomKnowledge of impending doom

What to think aboutWhat to think about

The “mom” test:The “mom” test: ““I’m going to be in this industry a long time. Will I’m going to be in this industry a long time. Will

this damage my reputation with my boss, this damage my reputation with my boss, colleagues, future customers or employers?”colleagues, future customers or employers?”

The personal responsibility test:The personal responsibility test: Weigh personal obligations to family and etc. that Weigh personal obligations to family and etc. that

can only be met if you have an income. can only be met if you have an income. ““Will harm avoided by greater than harm incurred?”Will harm avoided by greater than harm incurred?”

How to Blow the WhistleHow to Blow the Whistle

Do it anonymouslyDo it anonymously let the evidence speak for itself and protect yourself if let the evidence speak for itself and protect yourself if

possiblepossible

Do it in a groupDo it in a group charges have more weight and won’t seem like a personal charges have more weight and won’t seem like a personal

vendetta.vendetta.

Present just the evidencePresent just the evidence leave interpretation of facts to others.leave interpretation of facts to others.

Work through internal channelsWork through internal channels start with your immediate supervisor or follow the standard start with your immediate supervisor or follow the standard

reporting procedurereporting procedure

Work through external channelsWork through external channels go public (biggest risk)go public (biggest risk)

Risks of WhistleblowingRisks of Whistleblowing

WB rarely works out well for the WB rarely works out well for the whistleblowerwhistleblower

Viewed as a “rat” who ratted out the companyViewed as a “rat” who ratted out the company Resented by coworkersResented by coworkers Serious contemplation of job change or personal Serious contemplation of job change or personal

problematic activity (drinking, drugs, self-problematic activity (drinking, drugs, self-destructive behavior)destructive behavior)

Depends on the organization for a job, the job Depends on the organization for a job, the job makes money, the family needs money to survivemakes money, the family needs money to survive

StatisticsStatistics

Polling Group:Polling Group: 233 individuals polled, 40% responded233 individuals polled, 40% responded Average age: 47Average age: 47 Employed for 6.5 years at jobEmployed for 6.5 years at job Almost all lost jobAlmost all lost job

StatisticsStatistics

Negative Effects:Negative Effects: 51% of gov’t employees lost their job51% of gov’t employees lost their job 82% harassed by superiors82% harassed by superiors 69% watched closely after blowing the whistle69% watched closely after blowing the whistle 63% lost job responsibilities63% lost job responsibilities 60% fired60% fired 10% attempted suicide10% attempted suicide

Positive Effects:Positive Effects: 20% felt their actions resulted in positive changes20% felt their actions resulted in positive changes More than 50% (of responders) would do it againMore than 50% (of responders) would do it again

Ethical DilemmaEthical Dilemma The Mum EffectThe Mum Effect--reluctance to blow the whistle--reluctance to blow the whistle

Audit report may contradict the best judgment and vested interests Audit report may contradict the best judgment and vested interests of the powerful players backing a project; fear of reprisalsof the powerful players backing a project; fear of reprisals

The Deaf EffectThe Deaf Effect--reluctance to hear the whistle--reluctance to hear the whistle ““I wrote lots of reports. I escalated things as much as I could, but in I wrote lots of reports. I escalated things as much as I could, but in

the end, they said, ‘We really appreciate your efforts, but thanks, but the end, they said, ‘We really appreciate your efforts, but thanks, but no thanks’”no thanks’”

The Blind EffectThe Blind Effect--reluctance to see the need to blow the --reluctance to see the need to blow the whistlewhistle

Established audit functions do not operate effectively because they Established audit functions do not operate effectively because they try to conceal the information from managementtry to conceal the information from management

Case Study: ChallengerCase Study: Challenger

January 28, 1986January 28, 1986

Space Shuttle ChallengerSpace Shuttle Challenger

exploded 72 seconds intoexploded 72 seconds into

its flight, killing all 7 crewits flight, killing all 7 crew

members. The flight received much media members. The flight received much media

attention because a teacher, Christa attention because a teacher, Christa

McAuliffe, was on board.McAuliffe, was on board.

Challenger: What Went WrongChallenger: What Went Wrong

Explosion caused by O-ring Explosion caused by O-ring failure between segments of failure between segments of the booster rockets.the booster rockets.

Several employees of the Several employees of the manufacturer, Thiokol, had manufacturer, Thiokol, had been aware of the O-ring been aware of the O-ring deficiencies.deficiencies.

No one listened to the No one listened to the engineers who knew about engineers who knew about the problemthe problem

Challenger: Major PlayersChallenger: Major Players

Roger Boisjoly, seal specialist at ThiokolRoger Boisjoly, seal specialist at Thiokol Directed task force for a year to study the evidence Directed task force for a year to study the evidence

that hot gases eroded O-ringsthat hot gases eroded O-rings Allan McDonald, manager of solid-rocket motor Allan McDonald, manager of solid-rocket motor

programprogram Larry Mulloy, NASA official, manager of booster Larry Mulloy, NASA official, manager of booster

programsprograms George Hardy, NASA officialGeorge Hardy, NASA official

Challenger: TimelineChallenger: Timeline

July 31, 1985July 31, 1985 Boisioly wrote a memo saying, “it is my honest and Boisioly wrote a memo saying, “it is my honest and

very real fear that if we do not take immediate action very real fear that if we do not take immediate action to solve the problem [the company could] stand in to solve the problem [the company could] stand in jeopardy of losing a flight.”jeopardy of losing a flight.”

No conclusive evidence to back up memoNo conclusive evidence to back up memo

Challenger: Timeline Challenger: Timeline

January 27, 1986, the day before lift-offJanuary 27, 1986, the day before lift-off McDonald was worried about temperatures dropping to 22 McDonald was worried about temperatures dropping to 22

degrees overnight.degrees overnight. 14 engineers “fought like hell” to get permission to present to 14 engineers “fought like hell” to get permission to present to

NASANASA All 14 Thiokol engineers recommended postponing the launchAll 14 Thiokol engineers recommended postponing the launch Mulloy and Hardy challenged the recommendationMulloy and Hardy challenged the recommendation

Mulloy: “When do you want me to launch, next April?”Mulloy: “When do you want me to launch, next April?” Hardy: recommendation “appalled” himHardy: recommendation “appalled” him Thiokol: Management reversed the recommendation for Thiokol: Management reversed the recommendation for

postponementpostponement

What kind of dilemma was Thiokol forced into?What kind of dilemma was Thiokol forced into?

Challenger: The ExplosionChallenger: The Explosion O-rings partially failed O-rings partially failed

on ignition (picture)on ignition (picture) Melted metal sealed Melted metal sealed

the gapthe gap Hit a wind shear, Hit a wind shear,

causing the booster to causing the booster to flex and the seal to flex and the seal to dislodgedislodge

Loss of cabin Loss of cabin pressurepressure

Flames led to Flames led to explosionexplosion

Challenger: TimelineChallenger: Timeline

After the explosionAfter the explosion McDonaldMcDonald

Went publicWent public Demoted by managementDemoted by management Public outcry and Congressional investigation led to a reversal of Public outcry and Congressional investigation led to a reversal of

that decision and a promotion insteadthat decision and a promotion instead Became spokesman for Thiokol and new rocket boostersBecame spokesman for Thiokol and new rocket boosters

BoisjolyBoisjoly ““I hope and pray that I have not risked my job and family security by I hope and pray that I have not risked my job and family security by

being honest in my conviction”being honest in my conviction” Never worked on a shuttle again because it was too painfulNever worked on a shuttle again because it was too painful Wondered if there was more he could have done, even though the Wondered if there was more he could have done, even though the

record shows he minced no wordsrecord shows he minced no words Reassigned by management with altered responsibilitiesReassigned by management with altered responsibilities Took leave of absence, a year later went on disabilityTook leave of absence, a year later went on disability

Challenger: TimelineChallenger: Timeline

Later RepercussionsLater Repercussions Boisjoly sued Thiokol for $1 billion in personal suitBoisjoly sued Thiokol for $1 billion in personal suit

Dismissed because Thiokol’s actions were ruled not to have Dismissed because Thiokol’s actions were ruled not to have been designed to cause him distressbeen designed to cause him distress

Biosjoly sued Thiokol for $2 billion under False Claims Biosjoly sued Thiokol for $2 billion under False Claims ActAct

Filed on premise that Thiokol falsely certified safety and Filed on premise that Thiokol falsely certified safety and knew that the rockets they supplied to NASA were defectiveknew that the rockets they supplied to NASA were defective

Dismissed in 1988: Judge ruled that decision to launch was Dismissed in 1988: Judge ruled that decision to launch was not a false claim, but an engineering judgment with which not a false claim, but an engineering judgment with which other engineers disagreed, and that NASA also knew the other engineers disagreed, and that NASA also knew the facts behind the allegations, and was not deceivedfacts behind the allegations, and was not deceived

Challenger: QuestionsChallenger: Questions

What effects did Boisjoly and McDonald face when they What effects did Boisjoly and McDonald face when they blew the whistle?blew the whistle?

Why did NASA not listen to the engineers?Why did NASA not listen to the engineers?

Why did Thiokol to reverse its decision even though they Why did Thiokol to reverse its decision even though they knew it was incorrect?knew it was incorrect?

Would you have blown the whistle differently than Would you have blown the whistle differently than Boisjoly and McDonald? If so, how?Boisjoly and McDonald? If so, how?

Did McDonald go public at the right time?Did McDonald go public at the right time?

2002: Year of the Whistleblower2002: Year of the Whistleblower

Cynthia Cooper Cynthia Cooper

WorldComWorldCom

Coleen RowleyColeen Rowley

FBIFBI

Sherron WatkinsSherron Watkins

EnronEnron

Sherron WatkinsSherron Watkins

Former Vice President of Enron Former Vice President of Enron CorporationCorporation

Alerted then-CEO Ken Lay in August Alerted then-CEO Ken Lay in August 2001 to accounting irregularities within 2001 to accounting irregularities within the companythe company

Warned that Enron 'might implode in a Warned that Enron 'might implode in a wave of accounting scandals.' wave of accounting scandals.'

Testified before Congressional Testified before Congressional Committees from the House and Senate Committees from the House and Senate investigating Enron's demise. investigating Enron's demise.

Lauded in the press for her courageous Lauded in the press for her courageous actions, but left her job at Enron after a actions, but left her job at Enron after a few months when she wasn't given few months when she wasn't given much to do much to do

Coleen RowleyColeen Rowley

FBI staff attorneyFBI staff attorney

Wrote 13-page memo to FBI Director Wrote 13-page memo to FBI Director about pre-9/11 intelligence in May 2002about pre-9/11 intelligence in May 2002

Testified for the Senate Judiciary Testified for the Senate Judiciary CommitteeCommittee

Concerned the FBI was becoming more Concerned the FBI was becoming more bureaucratic and micromanagedbureaucratic and micromanaged

Helped government focus on better Helped government focus on better intelligence managementintelligence management

Fanny Pack

Cynthia CooperCynthia Cooper

WorldCom’s Director of Internal AuditWorldCom’s Director of Internal Audit

Her team discovered $3 billion in questionable Her team discovered $3 billion in questionable expensesexpenses

Met with 4 executives to track down and explain Met with 4 executives to track down and explain the undocumented expensesthe undocumented expenses

Disclosed findings, WorldCom stock frozen, Disclosed findings, WorldCom stock frozen, corporate credit rating went from B+ to CCC-corporate credit rating went from B+ to CCC-

Remained as VP of Internal Audit, not Remained as VP of Internal Audit, not promoted, no gratitude, resented by employeespromoted, no gratitude, resented by employees