Assignment 1 Whistleblowing and Sarbanes-Oxley Chagadama 1

Assignment 1: Whistleblowing and Sarbanes-Oxley Due

Joel Chagadama

October 26, 2014

LEG 500

Professor Augustine Weekley

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Assignment 1 Whistleblowing and Sarbanes-Oxley Chagadama 2

Abstract

Whistleblowing is the unsanctioned the release of classified information regarding a dangerous

practice that the supervisors or a workmate has committed, allowed or is contemplating on

committing within an organization. Revealing wrongdoing within an institution is usually not

very destructive than exposing inside info to outside parties, such as the media, or interest

groups, or the legislature raise a lot of question about loyalty. In the paper I will be exploring the

key characteristic of a whistleblower, and look at one of a recent case of whistleblowing and its

implications. To conclude the paper I will examine the laws and protections afforded

whistleblowers.

1. Key characteristics of a whistleblower, and one instance of whistleblowing in publicly

traded company.

Whistleblowers are those folks who call attention to potential misconduct within their

establishments. Some say these are honorable folks who sacrifice their professional and

personally wellbeing to uncover fraudulent, or harmful, wasteful practices that can be detriment

to the public safety. However, they are some who also believe that whistleblowers are a bunch of

displeased workers who are out to get anyone they feel have aggrieved them. Regardless the

view is, nobody can deny the fact that whistleblowing takes guts and much resolve. The most

common individualities of whistleblowing are rebellion, breach of loyalty, finger pointers and

lots of nerve. These features make whistleblowing an ethically equivocal feat. In addition to

violating numerous communal taboos, whistleblowing frequently puts commitment to ones

coworkers against that of the general public and involves allegation that those in position of

authority or workmates have neglected the public interest.

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One recent case of whistleblowing is a case involving Northrop Grumman a government

contractor brought to light by one of their managers Todd Donaldson on September 2012. He

accused his company of falsifying tests on their LN-100 Inertial Navigation System/Global

Positioning System (INS/GPS). As reported by Geuss, this GPS unit are installed on "various

aircraft, including helicopters and unmanned drones, missiles, submarines, and other vehicles

that provides essential positioning data to the sensitive systems. Mr. Donaldson asserts that

Northrop Grumman employees have been knowing fudging pass results for the Inertial

Navigation System units even though that wasnt the case and the devices were then sold to the

military. Donaldson also claims that he tried to bring up the issue with his superiors only to be

reprimanded and demoted.

2. Justification of whistleblowing in the reported case.

They have been a crash of a Predator drone carrying a Hellfire missile in the North African

Republic of Djibouti which the Air Force investigation team blamed the LN-100. The device in

question is reported to have recorded the drones altitude to be 400 feet higher than it actually

was. Even though the case has not yet been decided and they is only one accident to talk about,

its quite clear that Mr. Donaldson claim can be justified. Recently the Utah District Judge gave

orders to have case unsealed despite of the fact that the U.S. government reluctant to join the

lawsuit. It is however believed that the government might still decide to join the lawsuit.

3. Whistleblower protection under the Sarbanes-Oxley Act.

Albert Einstein once said that the world is a dangerous place not because of those who do evil

but because of those who look on and do nothing. It is therefore, very important that

whistleblowing be encouraged and those who have the courage to come forward be protected.

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Bjerkelo (2010) claims that the large percentage of all whistleblowers report some kind of

workplace harassment after speaking up. The Sarbanes-Oxley Act of 2002 also known as

(SOX) offers substantial safeguards for all those people who speaks up. Given its various

criminal, civil and administrative requirements, the law is considered to be one of the best

whistleblower protection statute.

Under the law publicly traded companies are required to create internal and independent audit

committees. These committee have to establish a coveted mechanism for employees to bring

forth whistleblower complaints, and stipulates ways in which the confidentiality of the

employees is safe guarded.

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References

Bjerkelo et al (2010) Predicting proactive behavior at work: Exploring the role of personality as

an antecedent of whistleblowing behavior. Journal of Occupational and Organizational

Psychology, 83(2), 371-394

Geuss, M. (2014.). Whistleblower suit accuses Northrop Grumman of fudging GPS systems

testing. Retrieved October 26, 2014, from http://arstechnica.com/tech-

policy/2014/10/whistleblower-suit-accuses-northrop-grumman-of-fudging-gps-systems-

testing/