Topics: Whistleblower, Qui tam, False Claims Act Pages: 5 (1637 words) Published: July 27, 2008
History of Whistleblowing
The definition of a whistleblower is a past or pesent employee or member of an organization, who reports misconduct to people or entities that have the power and presumed willingness to take corrective action, or to notify the general public of wrongdoing. In most cases, whistleblowers are employees of the ogranization but can be employees of government agencies as well. Normally the misconduct being reported is a violation of law, rule, regulation and/or a direct threat to public interest such as fraud, health, safety violations, and corruption. The word whistleblower originates from the old practice of English bobbies who would blow their whistle when they noticed a crime that was being committed. The blowing of the whistle would alert both law enforcement officers and the general public of danger. (Wikipedia, 2007). Whistleblowing is not something that is new to today’s modern business world, however, it has grown so much that there is much more impact to all parties involved including the whistleblower. Depending on the magnitue of the misconduct being reported, it will not only change the company and the whistleblower, but also may change the society and how it views different businesses or business in general. Although whistleblowing is not new, the modern day attitude towards it has changed greatly. Before the 1960s, corporations had broad freedom in employee policies and could fire an employee at will, even if no reason existed. Employees of organizations were expected to be loyal to their organizations at all costs. Among the few exceptions to this rule were unionized employees, who could only be terminated for "just cause," and government employees because the courts upheld their constitutional right to criticize agency policies. In the private industry, few real procedures for airing grievances existed. Partly because of this lack of protection for whistleblowers, problems were often hidden rather than solved. Probably the most atrocious example was in asbestos manufacturing, where the link to lung disease was clearly established as early as 1924 but actively hidden by company officials from the public and other agencies. The first product liability lawsuit against an asbestos manufacturer was not successfully publicized until 1971. In the 1970s, there were many memorable cases where potential whistleblowers decided not to act and ended up causing serious harm to employees and consumers alike, as well as the organizations as soon as the information went public that they had known of potential dangers. Alan Westin, Henry Kurtz, and Albert Robbins wrote a book called “Whistleblowing” that looked at many of these cases where potential whistleblowers decided to keep silent and ended up failing to prevent much damage to consumers. Sometimes a whistleblower acts only to have their notification go in one ear and out the other. Such a case is the Firestone disaster that occurred in the 1970s. In 1972, Firestone Tire Director of Development Thomas A. Robertson sent top management a memo warning that the “500” tire was inferior and subject to belt-edge separation at high speeds. His warning was ignored despite reports about poor performance from major customers such as General Motors, and the “500” tire was kept on the market. By the time Time magazine reported that accidents caused by blowouts had resulted in more than 41 deaths and hundreds of serious injuries, the company had already replaced 3 million tires and spent millions of dollars in personal injury lawsuits. If Robertson had received an internal hearing or blown the whistle externally, such disasters for the public and the company could have been avoided. (Ravishankar, Lilanthi) Not all whistleblowing opportunities have turned out to be negative to the public. Take the following example where whistleblowing helped change an industry. In this example, an internal employee knew that the company he worked for was pushing a...
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