Whistleblowing

629 Words Mar 11th, 2015 3 Pages
Whistleblowing LEG 500

Whistleblowing in a Publicly Traded Company

Whistleblowing implies the imperative necessity to alert others (company) about immorality issues, including illegal activity, happening inside the organization. For the employee who decides to blow the whistle “usually brings to he/she undesirable consequences.” Some consequences are like threats, loss of employment, and social rejection. (Chiu,R. 2003)
Whistleblower Traits
Whistleblowers are characterized by strong ethic-moral values. They are perceived as an active person with enough courage to expose the wrongdoing occurring inside their company. They are “perceived as altruistically driven individuals who are steered by their attitudes.”
The
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Ranbaxy agreed with FDA to don’t produce drugs for USA until they meet the requirements specified by American standards.
Whistleblowing Justification
Any pharmaceutical company Pharmaceutical, in North America, has to prove they are making products “bioequivalent” or have the same results as the Original Medicine.
The whistleblower was aware that the company was falsifying documents, didn’t meet the requirements to produce drugs according with USA regulations. Whistleblower action was justified because the fact that the company was making and selling medicine without scientific support it might put in jeopardy the health of many people who were in taking the drug.
Whistleblower protection under the Sarbanes-Oxley Act
The Whistleblower was in protected under the Sarbanes-Oxley Act. Whistle blowing protection is important for both Sarbanes Oxley and fraud protection. The Sarbanes –Oxley Act protect employees from publicly traded companies from retaliation against them after report the wrongdoing. In India where the company is located, whistleblowers don’t have any protection.
In this particular case the investigation took eight years. Thakur contacted the FDA which was in charge to not only investigate the case but to offer protection to him and his family.
The company faced civil penalties under the False Claims Act, “which allows citizens to bring civil actions on behalf of the United States and share in any recovery.” (McCafferty)

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