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When a person comes out to the public and informs them that a government, organizational, or business entity has been practicing unethical and dishonest methods of operation then the person is referred to as a whistleblower. Many times these unethical or dishonest methods of operation are referred to as misconduct, and this misconduct can include breaking a law, rule or regulation, or it can include committing fraud, threatening the best interest of the public, or breaking health and safety regulations. When a whistleblower makes their allegation statements they can do it on an internal or external basis.

False Claims Act

In the 1863 the United States implemented the False Claims Act; this act was put into effect to protect whistleblowers because they are often thought of as ‘tattletales’. Through the act whistleblowers are encouraged to always bring unethical and dishonest methods of operation to the attention of the public so that the government can recover losses that are taking place. In return the whistleblower receives a portion of any losses that are recovered, and even more importantly the whistleblower is protected from wrong dismissal.

Whistle-Blowing on an External and Internal Basis

Most of the time when a whistleblower steps forward they do so on an internal basis, meaning they inform other organization members of the unethical or dishonest methods taking place. In most instances the whistleblower informs someone of misconduct that is occurring by some other individual within the company they are employed by. Most whistleblowers only come forward to reveal their statements when they are made certain their identity will remain confidential.

Those people that act as a whistleblower on an external basis do so by reporting misconduct that is taking place by outside entities. Many times when this type of whistle-blowing occurs the person will make their statements to the media, an attorney, or to law enforcement. Many times this basis of whistle-blowing is encouraged through monetary rewards.

Consequences of Whistle-Blowing

Many times when a person becomes a whistleblower they are fired from the company they are employed through, ostracized by fellow coworkers, and even discriminated against from obtaining future jobs.

If a person is a whistleblower and the statements made turn out to be face the whistleblower can face criminal prosecutions.