Case Study: Whistleblowing Essay
In your opinion, do you think whistleblowing will work in Malaysia? - Case Study: Whistleblowing Essay introduction?? Elaborate on the reasons in support of your opinion. In my opinion, Whistle blowing will not work in Malaysia. From the passage, this is due to several reason. Firstly is due to culture, culture is where a group of people believe and behave the same way as it is. From this case, Malaysia’s culture is to prefer to keep things their own secretly. Basically they just dont want to review what is happening and just keep quiet and act nothing which is also known as open 1 eye close 1 eye basis.
Just like in an office, many of them just prefer to keep quiet even bad things are happening, they just don’t want to get involve and end up being boycott or something else. Secondly is the fraud and corruption occurring whenever people exist in both private and public sector. In Malaysia, corruption is all over places. Many people gather up to do the same thing and they share all the benefits, so whistle blowing is not going to work as people are gathering up for something where all got benefits. Just like traffic police, they bribe for not issuing summons.
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Besides, media has also been bribe to provide false information to make fake news and information to the public to keep their reputation. This is mostly done by the government. Thirdly is due to time consuming and costly to manage. Due to too many corruption and bribe occur in Malaysia, to emphasize whistle blowing in Malaysia, it needs a lot of time and cost to see a great result. In Malaysia, it is not easy to convince people to whistle blow. Sometimes benefit from bribe and corruptions are more from whistle blowing reward. So many people would not corporate. Forth is the whistle blower will feel uncomfortable, guilty and afraid?
Whistle blowing mainly is to reveal wrong doing of others and backstab people from doing something unethical. Due to this, they will feel uncomfortable by pointing somebody else out. Example like, a manager is very good to the employee and treat them well, but the manager has done something unethical. So the employee whistle blow and put the manager into disciplinary action. So they will feel uncomfortable and think that they betrayed someone and feel guilty. Due to the identity is not concealed, they will feel afraid on revenge by the victim. Just like the example above, the manager may take revenge.
Lastly is the lack of knowledge and training about whistle blowing. In Malaysia, whistle blowing is not emphasized by many companies. Whistle blowing has not come to the stage where by people would corporate and whistle blow. Like the point above, corruption and bribe is all over Malaysia, so it’s hard to convince people. Companies in Malaysia should give training and some short seminar for whistle blowing Knowledge for employees in every company and train them to be honest and stand up for wrong doing. Example like IBM spends money inviting experts to give a talk to provide knowledge and train their employee regarding whistle blow.
However, if whistle blowing works in Malaysia, it can maintain effective corporate governance. This can be done by implementing a whistle blowing policy to companies to encourage whistle blowing. This could be fair to all the members of the companies and employee. All are treated equally by holding corporate leaders accountable and protect company stakeholders. Besides, it also can disclose corruption and other misconduct. Due to Malaysia has a lot of corruption cases, it can reduce corruption by working on it. At the same time, working on this can investigate and reveal more and more corruption cases.
Just like a company working on whistle blowing, when they found out there are cases on corruption, it can link to other department and eventually can catch them. (b) Evaluate THREE (3) mechanisms which can be used to encourage people to come forward and blow the whistle. Anonymous whistle-blowing mechanism In the paragraph 4, in the US it is mandated by the Sarbanes-Oxley Act 2002, that all public companies have provide an anonymous whistle-blowing mechanism. It also mandated that audit committees of publicly traded firms must give whistle-blowers a way to anonymously disclose possible financial fraud without fear of prosecution.
Protecting the identity of the whistle blower can be of paramount importance. To report an incident which exposes another individual can be seriously dangerous to the person doing the reporting and cases are documented where such whistle blowers have lost their lives. Anonymous reporting can reduces the perception that when significant matters are reported they not be affected. It can to ensure whistle-blowers can safe and disburden to report. For example, when employee Edmund anonymous whistle-blower his manager or supervisor fraud, it can avoid manager or supervisor makes him trouble after the case.
That is because manager or supervisor will never who are the whistle blowers. To effective anonymous whistle-blowing is considering mode of communication of compliant. Depend on the communication channel it can represent a confidential level. People will think that is it the communication channel are safe for them to make compliant or is it confidential enough. The best channel is hotline and 24/7 operates. When make reports whistle blower is not necessary to provide them personal information. But it must provide sufficient corroborating evidence to justify the commencement of an investigation.
Hotline operates 24hours per day; it can let people easy and free to make report when discover the misconduct or fraud. When a employees discover a misconduct, they no need immediately to make complaint and can after finish working hours and make complaint at outside of company. It can increase the employees confidential. And hotline is cost effective. Monetary incentive mechanism And the last mechanism is providing powerful monetary incentives for people to report. Money, benefits or reward will attract whistle-blowers who can provide information about fraud and mismanagement.
For example, if an employee reports misconduct to the corporate employer first, that is a positive factor that could result in a larger award. Another reason is based on social psychology, framing financial incentives for whistle-blowing as a penalty is more effective. Common sense, people are always motivate by monetary, money is the most important for everyone. Easy to say, high price pay the motivation people come forward to whistle-blowing also high. And most of people will never do the work or provide important information if they don’t get anything reward.
So, reward is to exchange they meaningful information. Identify significant costs of whistle-blowing for employees, the monetary incentive must over than the costs, it only can effective to motivate people. Cost of whistle-blower can be relationships, lost of job, get trouble in future, or personal trust. So, if the reward is not high people will not take risk to whistle-blowing. However, monetary incentive has a policy to work. Monetary incentive may create a problem such as people will simply to whistle blowing something is untrue trying to get a reward.
To avoid this problem, set a policy only the truly information can get a rewards. And who are simply whistled blowing will get the penalties. Conduct training for all employee Another way to encourage whistle blowing is conduct a proper training for all employees. The reason is to ensure employee understand what they should do and know their capabilities in dealing with organization wrongdoing. This can overcome their fear of retaliation, which seen as one of the obstacles stopping them to blow the whistle, because they has very limited knowledge about how to blow the whistle.
According to Sections 8B2. 1(b)(4)(A)&(B) of the Federal Sentencing Guidelines reference the need to train the entire workforce with a sweeping definition of “individuals” who must be trained, include of members of the governing authority, high-level personnel, substantial authority personnel, the organization’s employees, and, as appropriate, the organization’s agents. Furthermore, there are some amendments, which is Section 8B2. 1 (b)(4), stated that the training was extended specifically to the upper levels of an organization, and all employees who works inside the organization.
Therefore, this clearly shows that, training for whistle blowing was not only focus on the employees but also the high level management personnel. The reason is to provide fair chances for everyone to blow the whistle if anyone of these being trained peoples discovers any wrongdoing conducted in the organization. In addition, the training time frame was being set in a standard too. According to Section 8B2. 1(b)(4)(A) of the Federal Sentencing Guidelines, the training should conduct periodically. However, there were no actual time frame to define the periodically. In addition, employees who newly join the company was required to provide hem training as soon as possible too. For new appointed manager, mandated training must occur within 6 month . c) Discuss THREE (3) ways in which wrongdoings in organisations can be minimised without resorting to whistleblowing. In the way of minimize the wrongdoings in organisations, corporate governance plays an important role in confront this activities that might seriously prohibited. The governing bodies of signatory organisations will ensure that their organisations have in place compliance systems and processes to ensure that their legal obligations are being met in each jurisdiction where work is carried out.
Besides that, governing bodies also will ensure that their organisations articulate their stance against wrongdoing, ensure that their ways of working actively minimize the risk of wrongdoing and monitor for evidence of wrongdoing. Second, in the organisations ‘view, organisations should examine their ethical climate and put safe guards in place. Organisations can conduct a formal assessment of their corporate culture from the perspectives of attitudes, perceptions, standards of conduct and vulnerabilities.
Each organisation should have ethics committees who are responsible for ensuring that systems are in place in the corporation. Thus, committees should focus on employee compliance with the Code of Ethics. Besides that, managerial level managers should have high ethical standards is to make sure that code of conduct or ethics code is properly implemented. The high ethical standards coporate culture cultivates good attitude employees in the work place and doing the right things. Third, communication is also an important element to ensure that wrongdoing is eliminated.
In order to create awareness and emphasize the important of education training, organisations can provide and encourage the education training such as the Business Ethics courses that should likely to transfer the knowledge and tell them why it is important for employees to know that. Fraud and corruptions or any misconduct is a serious case that organisations might pay more concern on this. Actions should be taken once organisations aware of these wrongdoings. Organisations are not to wait the misconducts is happen and then action is take later, but is more significantly perceived what actions must be taken before it happens.