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Whistleblowers: A Legitimate Role in Corporate Life?

NCJ Number
174226
Journal
Journal of Financial Crime Volume: 4 Issue: 2 Dated: November 1996 Pages: 179-182
Author(s)
G Bastin; P Townsend
Date Published
1996
Length
4 pages
Annotation
A democratic society requires freedom of information and needs to support employees who decide to speak out in good faith and as a last resort to expose practices that threaten employee safety and security, as well as the public good.
Abstract
Thus far in Great Britain the law has supported the cause of the employer at the expense of the interests of the disaffected employee who speaks out about questionable employer practices. The British Public Interest Disclosure Bill, a private member's bill recently introduced into Parliament, would have assisted in rectifying the imbalance between employer and employee interests. The bill was not passed. The Cadbury Report, in a quest to raise standards of corporate management and practice, was based on underlying principles of openness, integrity, and accountability. The use of gagging clauses, whereby employees are prevented through a signed agreement from speaking publicly about company issues, may be viewed by some as a legitimate practice in the contemporary highly competitive commercial sector; but it militates against the spirit of openness and accountability the Cadbury Report prescribes. Some form of statutory intervention is necessary to protect the interests of those employees who feel the need to voice their concerns over fraudulent or other questionable activity at their place of employment, while at the same time respecting and reflecting the genuine interests of the employer. Employers are entitled to loyalty and confidentiality in normal circumstances, but when there is serious malpractice, it is vital that people know the law will protect them if they act responsibly. 23 references

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