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What is a Whistle Blower?

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A Whistle Blower is a person who �blows the whistle on,� or tells on, an employer who he or she thinks has committed an illegal act. Recent examples of Whistle Blowers include Sherron Watkins, a former Enron vide president who prepared an anonymous memo detailing her concerns about accounting scandals. When the memo was ignored, Watkins again brought her concerns up to the CEO. A long investigation and scandal ensued. Watkins was �rewarded� by having her computer hard drive confiscated, being moved to a less-lush office, and given lesser assignments. In the end, she testified before Congress about Enron�s partnerships, and resigned from the company. Time magazine named Watkins, and two other whistleblowers, as Persons of the Year in 2002.

If an employee tries to handle the problem from within, by talking with co-workers, management, and others with responsibility to fix the wrongdoings, and get nowhere, they can turn to blowing the whistle on the activity in question. This involves exposing an employer�s wrongdoing to outsiders, such as governmental agencies or the media.

In the past, whistle blowers have been labeled traitors, and some have lost their jobs. With the Sarbanes-Oxley Act, people should no longer fear losing their jobs. This act makes it illegal to discharge, demote, suspend, threaten, harass, or in any manner discriminate against a whistleblower and includes penalties of up to 10 years in jail for executives who retaliate against whistle blowers. The law also requires publicly traded companies to establish an anonymous reporting mechanism that allows employees to question actions they believe may indicate securities fraud.

Next Page: What kinds of laws are in place to protect Whistle Blowers?

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