Wednesday, November 21, 2012

Whistleblowing in the Accounting Profession


What is Whistleblowing?

I will explain what whistleblowing is and when an individual is likely to feel it is necessary to blow the whistle on a person or business.

Why is Whistleblowing Important?

Whistleblowing is a hot topic right now due to the scandals that have rocked the business world in recent years. In 2002, two individuals from Enron and Worldcom were named Time’s people of the year because of their efforts in coming forward during serious, billion dollar scandals happening internally in their company. It is important to be ethical in business so people can always trust you to do the right thing.

Real World Example of Whistleblowing

In this section, I plan to demonstrate when/how an accountant can come forward in a scandal. I have not yet decided on which example to use because there are so many good ones. I will probably wait to choose a case until I talk with the expert.

Positive Effects of Whistleblowing

It can put an end to the fraudulent acts occurring in the company. It can change future policies that benefit employees and the company. It is the right thing to do, and it is ethical.

Negative Effects of Whistleblowing

People in the company may not trust you anymore. There is a lot of added stress that goes along with whistleblowing. You may be fired for going against the company. Employees may alienate you from them. You may have to go through litigation and deal with lawsuits.

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