Summary and Keywords
Whistleblowing (also called good faith reporting, anonymous reporting, protected disclosure) is growing in importance as a corporate governance mechanism. It is increasingly recognized as a key internal control mechanism. Whistleblowing is a term used to describe an act whereby wrongdoing is exposed. It gained impetus following the collapse of Enron in 2001 arising from financial reporting fraud, which culminated in the U.S. Time magazine selecting three whistleblowers (all women) as its person of the year in 2002. The term was first used in 1966. Researchers have invoked a variety of theories and models attempting to explain whistleblowing. Elements that influence the process include the whistleblowers, the type of wrongdoing, the wrongdoers, the decision to blow the whistle, whistleblowing recipients, organizational factors, and finally the consequences of whistleblowing. Organizational processes, alternative to the more extreme step of whistleblowing, include silence (the other side of the coin to whistleblowing), speaking up, and open disclosure. An organizational response resisting an employee speaking up is the trigger that creates a whistleblower. The definition of whistleblowing only includes organizational members. Should it be extended to include external parties as well as organizational members? Social media has had an impact on whistleblowing. Questions remain as to the efficacy of whistleblowing: Is it a substantive or symbolic mechanism of governance?
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