Case Study Of The Codan Group

If he rejects and acts as a whistle-blower, the Finance Director may sack him, while agreeing with his supervisor, he is an accomplice to a possible crime, while surely lost his credential as a professional accountant. The external auditor of ABC is in a similar situation. While it is true that public accountant serves the public interest, especially shareholders, management has the power to appoint a different auditor, who is willing to accept their accounting practice. Auditors, who are concerned about losing the clients, might turn a blind eye to such issues they are supposed to identify to shareholders.

“Investigations should be conducted by audit committees rather than management if there is any possibility of the involvement of top management or the matter may be embarrassing to the company. In general, it is preferable to use independent counsel to conduct an investigation.” - Frederick D. Lipman and L. Keith Lipman, Corporate Governance Best Practices Strategies for Public, Private and Not-for-Profit Organizations, p. 197 (Wiley Best Practices, 2006)

The argument for whistleblowing will focus on the issue of whether or not whistleblowing is “permissible always” or “permissible sometimes”.

If you are an organization, who is looking forward to define the whistle blowing policy for your company but are not sure what to do, following recommendations are just for you.

A key example of the importance of whistleblowing can be found in the medical field. Ray, in her journal article, Whistleblowing and Organizational Ethics, forms a dialogue about her experience as a nurse, negligence in the workplace, and how whistleblowers are persecuted. Ray worked at a psychiatric facility where another registered nurse told patients diagnosed with schizophrenia, she could “cure” their mental illness by laying hands on the patients. After they were not cured, patients had breakdowns, only to be calmed by force and medication. After whistleblowing to higher chain of command, she was constantly shutdown and the nurse was able to continue bad practices on patients. Ray expressed how she felt her place of employment had a” morally deviant organizational culture. She felt pain, suffering, fear, grief, anxiety, rage and powerlessness” (Ray 438-439). Not only are the patients negatively affected the employees are too. If they work at another place of employment with those same bad habits, they could be severely punished or even have their nursing license taken away. Whistleblowing utilized in the right manor makes others accountable for their actions as well as the organization. It is the organizations job to create an environment friendly place for people to voice their concerns to better the organization and its employees. They can take the steps to manage

I don’t agree with the statement provided that ‘whistleblowing’ is an enemy of business and creates suspicion and disharmony. This is simply the old traditional view of the idea of whistleblowing that there is a spy or snitch within the camp looking after his/her own interests. This old and traditional view is largely based on the case that employee’s within organisations had very little rights and they weren’t encouraged to be vocal about any misbehaviour or inappropriate dealings they would have witnessed within the organisation. The idea that whistleblowing is encouraging a widespread disunity within a firm is a purely

In your blog post you raised the issue of whether whistleblowing is believed to be morally right or wrong.

For example, The Audit Committee of The Board of Directors has established procedures to receive, retain and treat complaints regarding fiscal improprieties, accounting, internal accounting controls or auditing matters and to provide for the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters. Employees may submit good faith complaints regarding accounting or auditing matters without fear of dismissal or retaliation of any kind (Johnson & Johnson Investor Relations, 2006). All employees are responsible for

Whistle blowing may not always result in negative outcomes for the company/organization. It may also be done in order to identify the flaws present in the current organizational structure which allow people to misuse their position. And in such cases it comes out that the whistle blowing activity which was done was a positive duty to the organization. Especially for a public company whose shares are held by general public if the management is

The concept of whistleblowing in modern days differs from citizens to public servants. From citizens’ perspective, this action is perceived positively because it promotes the public good, and for most public servants, this action is perceived negatively because it damages the reputation of the organization and can ultimately jeopardize national security.

There are currently laws to protect employees who are whistleblowers, allowing lower level employees to be protected if they talk about a security issue that could have been easily prevented (OSC, 1970). These protections prevent the higher level employees from turning around and blaming the lower level employee because they were the ones who let the breach be known. The laws don’t specifically talk about security breaches because they are still fairly new so laws and regulations are still being developed for IT security.

Another issue is on whether or not internal auditors should whistleblow when they discover organizational wrongdoings. Internal auditors always face situations that involve conflict of interest while executing their dual-role duties (Armold & Ponemon, 1991; E.Z. Taylor & Curtis, 2010). The dual-role duties mentioned here are the role of internal auditors as employed by the organization, which subject to the needs and requirements of their employment, and the role as members of a professional body, they are required to adhere to the profession's ethical requirements. Ahmad and Taylor support the view and assert that the role of internal auditors in providing auditing tasks for their organizational may cause ongoing conflicts. Zhang, Chiu and Wei (2009) argue that the "disclosing insider information to outsider's breaches obligation to the organization, violates the written or unspoken contract, and elicits damaging publicity".

Corporate America is still reeling from scandals and corporate corruption caused by excessive greed and the need to rake in huge profits. In this paper, the writer will provide some characteristics and impacts of individuals know as “whistleblowers”. Whistleblowers have emerged to facilitate corporate executives and corporations being more transparent, and ensuring that stakeholders rights are protected from inordinate corporate greed. The writer provides details and accounts of a recent whistleblower activity, and provides a summation of those activities. Finally, the writer provides perspectives as to the impact the whistleblower’s activities

The ethical issues surrounding whistle-blowing are often viewed as controversial and difficult to analyze. This is mainly because whistle blowing may support or negate from several values that are considered part of ethics. An example of when whistle blowing is ethically required is when one witnesses blatant violation of the law. Let’s take the example of Ben who works in the accounting department at a large corporation. Ben joined the organization only two years ago as an accounts assistant and works under Mr. Corgar, who is the chief accountant at the firm. Mr. Corgar has been with the organization for 11 years now, and is one of the most trusted employees. He has a very close relationship with the top management including the C.E.O and the Operations manager. Part of Ben’s job is to ensure that the company’s financial records are properly kept and submitted for auditing in the proper format and at the proper time. The relationship between Ben and Mr. Corgar is good, but they have had their fair share of arguments. This is because Ben has noticed Mr. Corgar using some unethical business practices to alter some of the company’s accounts. Particularly, a few months ago, Ben noticed that Mr. Corgar

The power to hire, fire, and compensate the external auditors must reside in the company’s audit committee, as opposed to the management or the board of directors as a