Whistle-blowing would appear to involve a conflict between employee loyalty and protection of public interest. Several business ethicists have, however, argued that this conflict is indeed merely apparent. According to the central argument to that effect, when the nature of employee loyalty is understood correctly, it becomes clear that whistle-blowing does not threaten employees' loyalty to their employer. This is because blowing the whistle about one's employer's wrongdoing and being loyal to them serves the same goal, the moral good of (...) the employer. In this article, I assess this philosophical argument for the conclusion that the moral problem of whistle-blowing is not real. I argue that the way of defending the view that whistle-blowing is not morally problematic is implausible. (shrink)

In November 2019 the EU Whistleblower Directive came into force. Whistleblowing has been described as a human right and a freedom fundamental to democracy. But it is not always straightforward to understand concrete cases of reporting wrongdoing in terms of abstract political philosophy. This paper uses a discussion between Berlin and Skinner about what negative freedom is, as a theoretical framework to understand the struggles of a campaigning platform of trade unions and civil society organizations, in the coming about of (...) the EU Whistleblower Directive. The paper is empirically based on a document analysis of two Resolutions in the European Parliament, the European Commission’s proposal text, the approved text in the European Parliament, and messages on the listserv of the campaigning platform between February 2017 and April 2019. The paper provides insights on how whistleblowing freedom relates to public interest and autonomy. (shrink)

This article presents a network perspective on whistleblowing. It considers how whistleblowing affects, and is affected by, the preexisting distribution of power inside and outside an organization, where power is conceptualized as deriving from the network positions of the key actors. The article also highlights four characteristic features of whistleblowing: third‐party detriment, local subversion, appeal to central or external power, and reasonable expectation of concern. The feature of local subversion succinctly explains why whistleblowing is difficult. The feature of appeal to (...) central or external power highlights that contrary to the perception of a democratizing phenomenon, whistleblowing tends to redistribute discretion away from local power toward more central power. This suggests a need for caution about institutional measures to promote whistleblowing in contexts where governance is already highly centralized. (shrink)

This paper seeks to analyze and to motivate a trend toward virtue ethics and away from deontology in the business ethics account of organizational loyalty. Prevailing authors appeal to “transcendent” values (deontology), skepticism (there is no loyalty), or Aristotelianism (loyalty is seeking mutual self-interest). I argue that the “Aristotelian” view clears up the “egoist” difficulty with loyalty. Briefly, critics feel we must “transcend,” “replace,” “overcome” and most especially sacrifice self-interest on the altar of ethics and loyalty. I argue that few (...) things can be more ethical than loyalty to shared values. When a company and I both pursue the same value X, there becomes no difference between my seeking my best interest and my seeking the best interest of the company (and vice versa). Hence, the way out of the egoist difficulty with loyalty is seeing a company’s interests as my own (Aristotle’s third stage of friendship). (shrink)

Unethical behavior coordinated and concealed by teams continues to represent a troubling and all-too-frequent occurrence in organizations. Unfortunately, those who are most knowledgeable about this behavior and thereby best suited to report it to authorities—the complicit members themselves—are susceptible to unique pressures that often discourage them from blowing the whistle. Team members rely on their teammates for relational and other beneficial resources, making it more difficult to potentially break those ties by snitching. However, we argue that the pressure to stay (...) silent is alleviated for members who are ostracized by their team members. Drawing on social exchange theory, we theorize that ostracism decreases positive affect and increases negative affect, decreasing individuals’ communion striving motivation and, in turn, increasing the propensity to blow the whistle. In Study 1, we examined the link between ostracism and whistleblowing utilizing a field sample of diverse employees surveyed over time. In Study 2, we built upon Study 1 and conducted a lab study to examine affect and communion striving motivation as serial mediators. Results were generally supportive of our arguments, although we did not find support for the mediating effect of negative affect. (shrink)

Whistleblowing is the act of disclosing information from a public or private organization in order to reveal cases of corruption that are of immediate or potential danger to the public. Blowing the whistle involves personal risk, especially when legal protection is absent, and charges of betrayal, which often come in the form of legal prosecution under treason laws. In this article we argue that whistleblowing is justified when disclosures are made with the proper intent and fulfill specific communicative constraints in (...) addressing issues of public interest. Three communicative constraints of informativeness, truthfulness and evidence are discussed in this regard. We develop a ‘harm test’ to assess the intent for disclosures, concluding that it is not sufficient for justification. Along with the proper intent, a successful act of whistleblowing should provide information that serves the public interest. Taking cognizance of the varied conceptions of public interest, we present an account of public interest that fits the framework of whistleblowing disclosures. In particular, we argue that whistleblowing is justified inter alia when the information it conveys is of a presumptive interest for a public insofar as it reveals an instance of injustice or violation of a civil or political right done against and unbeknown to some members of a polity. (shrink)

The purpose of this study was to explore the motivational structures of external whistleblowers involved in the decision to blow the whistle by applying MEC theory and the laddering technique. Using both soft and hard laddering methods, data were collected from 37 Korean external whistleblowers. Results revealed that the means-end chain of external whistleblowers was the hierarchical linkage among two concrete attributes, two functional consequences, and one terminal value. The extant whistleblowing literature has either made assumptions about whistleblowers’ motivations when (...) developing models or has drawn indirect inferences from measures of other variables. Our study is the first with an explicit and empirical focus on whistleblowers’ motivations. The findings provide evidence of the motivational structures of external whistleblowers that consist of a set of complex paths linked by multi-layered motivators. This research will be helpful in designing and reviewing whistleblowing programs for organizations, regulatory agencies, and journalists. (shrink)

This article is an examination of the moral complexity of the act of whistleblowing in the context of corporate corruption. Whistleblowing may be a morally admirable act underataken by morally ambiguous agents, but can only be fully understood in context. Using German theologian Dietrich Bonhoeffer’s essay “What Does It Mean to Tell the Truth?” This essay will examine how the kind of deception sometimes necessary in whistleblowing cases can be testimony to a larger and more profound truth.

. The ability to enforce the provisions of a code of conduct influences whether the code is effective in shaping behavior. Enforcement relies in part on the willingness of organization members to report violations of the code, but research from the business and educational environment suggests that fewer than half of those who observe code violations follow their organizations procedures for reporting them. Based on a review of the literature in the business and educational environments, and a survey of 3605 (...) students at a mid-sized comprehensive university, this paper attempts to make conceptual sense of the non-reporting phenomenon. We present a conceptual framework based on four distinct factors which we have labeled: (1) factual non-responsibility; (2) moral non-responsibility; (3) consequential exoneration; and, (4) functional exoneration. Each of these factors suggest a different remedial strategy as well as provide a theoretical foundation for future research. Testable propositions for future research are developed, and some implications for organization leaders are discussed. (shrink)

The core of the paper consists of dialogue from a true case where an employee experienced moral dilemmas following a disquieting directive from his manager. The case is considered from the perspective of Dancy's particularistic theory of moral reasons. This case was chosen not to illustrate the theory, but rather to test the assumption that an approach to moral judgement based on Ross and Dancy has general applicability. It is suggested that, in its simplest form, that approach approximates to the (...) manner in which people in organisations, without prior knowledge of ethical theorising, would ordinarily deal with comparable situations, and so it can be relatively easy to learn given practice. Based on this case, some insight is also offered into individuals' moral learning, including their need for personal qualities such as assertiveness and independence of mind. In that context a reciprocal relationship between Dancy's approach and Werhane's thinking on moral imagination is suggested. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

This article suggests that the introduction of employment protection rights for whistleblowers has implications for the way in which trust and loyalty should be viewed at the workplace. In particular, it is argued that the very existence of legislative provisions in the United Kingdom reinforces the notion that whistleblowing should not be regarded as either deviant or disloyal behaviour. Thus, the internal reporting of concerns can be seen as an act of trust and loyalty in drawing the employer's attention to (...) wrongdoing. Equally, external whistleblowing may result from a worker's belief that he or she also has a loyalty to the wider society. Given that the interests of employees do not necessarily coincide with those of their employer and that whistleblowers sometimes suffer reprisals, the author concludes that it is inappropriate to impose a contractual duty to report concerns. Instead, employers should endeavour to promote a culture of openness and create confidence in the mechanisms they provide for whistleblowing. (shrink)

If students are to understand ethical problems at work, practical applications are essential in translating classroom learning into real world knowledge. This article describes the ethical complaint letter as one pedagogical approach for MBA students to understanding real world ethical situations. Students write an objective, fact-filled complaint letter to an organization that has behaved in an unethical manner toward them. A specific assignment protocol is presented for the students and for discussing organizational responses in class. Finally, an examination of expected (...) outcomes, cautions, and learning opportunities is detailed. (shrink)

Since the introduction of the U.S. Sarbanes-Oxley Act in 2002 and several other national corporate governance codes, whistleblowing policies have been implemented in a growing number of companies. Existing research indicates that this type of governance codes has a limited direct effect on ethical or whistleblowing behaviour whereas whistleblowing policies at the corporate level seem to be more effective. Therefore, evidence on the impact of (inter)national corporate governance codes on the content of corporate whistleblowing policies is important to understand their (...) indirect impact on whistleblowing behaviour. This study analyzes the contents of whistleblowing policies, and parts of corporate codes of conduct and codes of ethics, describing such policies of 56 leading European companies. By classifying the contents in seven categories, an exploratory framework was created. General contents often identified were: applicability to all employees, a group-wide scope and an authoritative tone. The most common general violations to report were breaches of internal policies and external regulations or laws. The more specific violations most frequently mentioned were criminal offences and dangers to health and safety or the environment. Contacts to report to were the direct or indirect supervisors, a compliance officer or a confidential "hotline" facility. A confidentiality guarantee was common and anonymous reporting was often possible, though sometimes discouraged. Protection against retaliation is stated by ensuring that retaliation will not happen, prohibiting it or making it punishable. The requirement of good faith was frequently given. Finally, investigation of the report was often guaranteed. Surprisingly little information is given on the treatment of whistleblowers reporting an unfounded complaint in good faith, or reporting a violation they were involved in. The study's findings are most relevant to companies without a whistleblowing policy or those that intend to benchmark their policies, and to pan-European standard setters. (shrink)

Since the introduction of the U.S. Sarbanes-Oxley Act in 2002 and several other national corporate governance codes, whistleblowing policies have been implemented in a growing number of companies. Existing research indicates that this type of governance codes has a limited direct effect on ethical or whistleblowing behaviour whereas whistleblowing policies at the corporate level seem to be more effective. Therefore, evidence on the impact of (inter)national corporate governance codes on the content of corporate whistleblowing policies is important to understand their (...) indirect impact on whistleblowing behaviour. This study analyzes the contents of whistleblowing policies, and parts of corporate codes of conduct and codes of ethics, describing such policies of 56 leading European companies. By classifying the contents in seven categories, an exploratory framework was created. General contents often identified were: applicability to all employees, a group-wide scope and an authoritative tone. The most common general violations to report were breaches of internal policies and external regulations or laws. The more specific violations most frequently mentioned were criminal offences and dangers to health and safety or the environment. Contacts to report to were the direct or indirect supervisors, a compliance officer or a confidential “hotline” facility. A confidentiality guarantee was common and anonymous reporting was often possible, though sometimes discouraged. Protection against retaliation is stated by ensuring that retaliation will not happen, prohibiting it or making it punishable. The requirement of good faith was frequently given. Finally, investigation of the report was often guaranteed. Surprisingly little information is given on the treatment of whistleblowers reporting an unfounded complaint in good faith, or reporting a violation they were involved in. The study’s findings are most relevant to companies without a whistleblowing policy or those that intend to benchmark their policies, and to pan-European standard setters. (shrink)

ABSTRACT:Although business ethicists have theorized frequently about the virtues and vices of employee loyalty, the concept of loyalty remains loosely defined. In this article, we argue that viewing loyalty as a cognitive phenomenon—an attitude that resides in the mind of the individual—helps to clarify definitional inconsistencies, provides a finer-grained analysis of the concept, and sheds additional light on the ethical implications of loyalty in organizations. Specifically, we adopt the psychological contract perspective to analyze loyalty's cognitive dimensions, and treat loyalty as (...) an individual-level construction of perceived reciprocal obligations. Based upon this perspective, we present a three-tiered framework of loyalty that provides a psychologically informed definition of the concept, specifies the variety of obligation types that loyalty can imply, and anticipates the potential for asymmetrical loyalty configurations between employers and employees. We use the framework to articulate moral issues associated with both symmetrical and asymmetrical loyalty configurations and discuss the implications of the framework for theory and practice. (shrink)

ABSTRACTWhistleblowing has gained increasing media attention over the past 40 years, as incidents of abuse and wrongdoing associated with businesses, religious institutions, the media and politics...

Loyalty is a much-discussed topic among business ethicists, but this discussion seems to have issued in very few clear conclusions. This article builds on the existing literature on the subject and attempts to ground a definite conclusion on a limited topic: whether, and under what conditions, it makes sense for an employee to offer loyalty to his employer. The main ways in which loyalty to one’s employer can contribute to human flourishing are that it makes the employee more trustworthy and (...) therefore more valuable as an employee; makes it easier to form authentic relationships in other areas of the employee’s life; expands the employee’s field of interests and gives her or him a richer identity; provides greater motivation for the employee’s work; makes it possible to have a greater unity in the employee’s life; improves the performance of the organization for which the employee works; contributes to the protection of valuable social institutions; and, in so far as many employees share an attitude of loyalty towards the organization which employs them, it becomes possible for this organization to become a true community. Last, but not the least, loyal relationships have an inherent value. The article also reviews the main arguments that have been offered against employee loyalty and concludes that none of them offers a reason why it would be inappropriate in all cases for an employee to be loyal to her or his employer. The force of these arguments depends on the specific attributes of the organization for which the employee works. The main conclusion of the article is that while being a loyal employee involves risk, it has the potential to contribute significantly to the employee’s fulfilment. The main challenge for employees is to identify employers who are worthy of being loyal to. (shrink)

This article examines the relevance and value of Confucian Ethics to contemporary Business Ethics by comparing their respective perspectives and approaches towards business activities within the modern capitalist framework, the principle of reciprocity and the concept of human virtues. Confucian Ethics provides interesting parallels with contemporary Western-oriented Business Ethics. At the same, it diverges from contemporary Business Ethics in some significant ways. Upon an examination of philosophical texts as well as empirical studies, it is argued that Confucian Ethics is able (...) to provide some unique philosophical and intellectual perspectives in order to forge a richer understanding and analysis of the field of contemporary Business Ethics. (shrink)

This article examines the relevance and value of Confucian Ethics to contemporary Business Ethics by comparing their respective perspectives and approaches towards business activities within the modern capitalist framework, the principle of reciprocity and the concept of human virtues. Confucian Ethics provides interesting parallels with contemporary Western-oriented Business Ethics. At the same, it diverges from contemporary Business Ethics in some significant ways. Upon an examination of philosophical texts as well as empirical studies, it is argued that Confucian Ethics is able (...) to provide some unique philosophical and intellectual perspectives in order to forge a richer understanding and analysis of the field of contemporary Business Ethics. (shrink)

This paper focuses on the 1986 Amendments to the False Claims Act of 1863, which offers whistle-blowers financial rewards for disclosing fraud committed against the U.S. government. This law provides an opportunity to examine underlying assumptions about the morality of whistle-blowing and to consider the merits of increased reliance on whistle-blowing to protect the public interest. The law seems open to a number of moral objections, most notably that it exerts a morally corrupting influence on whistle-blowers. We answer these objections (...) and argue that the law is not objectionable on these grounds. Since there are no compelling moral objections to the law, it is appropriate and acceptable to judge the law in terms of its economic costs and benefits. We assess the most salient of these and conclude that the benefits outweigh the costs. We suggest that a mechanism similar to the Act should be considered for protecting stockholders’ interests in the private sector. We conclude by making several proposals for improving the existing legislation. (shrink)

This paper focuses on the 1986 Amendments to the False Claims Act of 1863, which offers whistle-blowers financial rewards for disclosing fraud committed against the U.S. government. This law provides an opportunity to examine underlying assumptions about the morality of whistle-blowing and to consider the merits of increased reliance on whistle-blowing to protect the public interest. The law seems open to a number of moral objections, most notably that it exerts a morally corrupting influence on whistle-blowers. We answer these objections (...) and argue that the law is not objectionable on these grounds. Since there are no compelling moral objections to the law, it is appropriate and acceptable to judge the law in terms of its economic costs and benefits. We assess the most salient of these and conclude that the benefits outweigh the costs. We suggest that a mechanism similar to the Act should be considered for protecting stockholders' interests in the private sector. We conclude by making several proposals for improving the existing legislation. (shrink)

This paper explores the relationships that various applied ethics bear to each other, both in particular disciplines and more generally. The introductory section lays out the challenge of coming up with such an account and, drawing a parallel with the philosophy of science, offers that applied ethics may either be unified or disunified. The second section develops one simple account through which applied ethics are unified, vis-à-vis ethical theory. However, this is not taken to be a satisfying answer, for reasons (...) explained. In the third section, specific applied ethics are explored: biomedical ethics; business ethics; environmental ethics; and neuroethics. These are chosen not to be comprehensive, but rather for their traditions or other illustrative purposes. The final section draws together the results of the preceding analysis and defends a disunity conception of applied ethics. (shrink)