Whistleblower: Meaning, Objectives, Act 2014 and Types | Management

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MEANING
A whistleblower is a person, who could be an employee of a company, or a government organization disclosing information to the public or some higher authority about any wrongdoing, which could be in the form of insider trading, fraud or unethical practices.

He/ She is generally a person who comes forward and shares the knowledge on any wrongdoing. They can be an employee, supplier, or a contractor who becomes aware of any illegal or wrongful activity.

To protect whistleblowers from losing their jobs or getting mistreated there are specific laws pertaining to this.. Most companies even have separate laws regarding how to report such wrongful activities.

A whistleblower can file a lawsuit or can even register a complaint with the higher authorities which can trigger a criminal investigation against the individual or the department.
OBJECTIVES
The main purpose of whistle blowing is to remove the unethical behavior from the organization or workplace.

To set an example of the importance of right conduct and ethical measures in the mind of organization’s employees as well as the society.
When an organization or certain individuals involve themselves in unethical practices, then there is a huge loss for the organizations treasury and therefore also the money invested by the various stakeholders.

The shareholders are the agents of the organization and to protect their interests, it is very important that any wrongful activity on the organizations part is reported
Whistleblowers Act, 2014
In 2011, Whistleblowers Protection Act was drafted. The act was later renamed, The Whistleblowers Act, 2014 and was passed by both houses of parliament, but never notified

Protection for whistleblowers against the government remains elusive.

Whistleblowers who enjoy the legal protection of a whistleblower law fall within the first of three categories of “informants”. The second category are those that fall outside the realm of this protection and are referred to as “leakers”.
Types
Internal Whistleblower: When an employee from an organization informs about the illegal activities or misconduct or any wrongdoing to his seniors holding the top position in that organization, it is basically termed as internal whistle blowing.
In this case the employee decides not to file a legal suit or not to leak it to the outside parties.
External Whistleblower: When an employee informs about the wrongdoing to someone who is not a part of his organization, for instance, a statutory body or a lawyer or any authority figure is what is generally termed as external whistle blowing.

It is generally done so as to reduce the chances of ignorance or complete denial if it was so reported to the internal members of the organization.
LETS PRACTICE
When was whistleblower protection act passed in India?

2012
2014
2011
None of the above
Whistle blowing aim is to?

Promote unethical practices
Encourage unwrongful activities
Remove accountability
None of the above
CHAPTER
00:00 Whistleblower, Meaning, Objectives And Types
00:13 Meaning
02:04 Objectives
04:52 Whistleblower’s Act,2014
06:11 Types
08:52 Lets Practice