Whistleblowing Essay

1298 Words Nov 12th, 2015 6 Pages
Assignment 1: Whistleblowing and Sarbanes-Oxley
LEG500030VA016-11 (Law, Ethics & Corporate Governance
Professor Timothy Griffin
Strayer University

Jan Jones July 19, 2015

Describe the key characteristics of a whistleblower, and briefly summarize one (1) researched instance of whistleblowing in one (1) publicly traded company within the last 12 months. Include the details of the issue that the whistleblower reported and the effect of the whistleblower’s actions on both the whistleblower himself and the company.
A whistleblower is a person who exposes any kind of information or activity that is deemed illegal, dishonest, or not correct within an organization that is either private or public. The information of alleged
…show more content…
Even though SEC didn’t have to issue an award in the first case, Mike Delikat, a partner at Orrick Herrington & Sutcliffe and chair of the firm’s whistleblowing task force, thinks it may have done so to send a message to companies that they need to take seriously the credible complaints of wrongdoing they receive from their workers. He said SEC has been criticized for advocating that employees can come to the agency first with information, even if their companies mandate they report internally. This award is “like a demonstration that folks still are reporting internally but companies aren’t doing anything about it so we have to step in and whack those companies that don’t do anything,” said Mr. Delikat. “That is my speculation.”
L-3 responded exactly the way a publicly traded company is required to by Sarbanes-Oxley and Dodd-Frank, sending the proper signal to whistleblowers that information about fraud is welcome and will be acted upon, even if the results lead to short-term negative consequences for the business.
Whistleblowing cases reported to the Financial Conduct Authority (FCA) have increased by 35 per cent in the past 12 months, according to new information obtained under the Freedom of Information Act by Kroll, the global investigations firm. The Securities and Exchange Commission (SEC) made payouts

More about Whistleblowing Essay

Open Document