THE WHISTLEBLOWING PARADOX:

TRUTH, RISK, AND RETALIATION

PP151
ABSTRACT

In the current world, we find ourselves in, we are witnesses to surmounting change, change outpacing our
moral and ethical boundaries, change beyond our surveillance, and this change can sometimes lead to
calamities beyond our comprehension. Thus, to keep this change in check, whistleblowing grew alongside it as
an agent of equity, a tool, and a guardian aimed at ensuring accountability, preventing malpractices, and
unveiling the truth buried under the glamour of the tall glass corporate buildings. This paper aims to provide
insight into various areas by studying the reasons behind the collapse of the Free Hand in the 2008 financial
crisis and the evils of the Lehman Brothers, Bernie Madoff, and its wagon of scandal. It also delves into its
Indian Counterpart and institutional negligence leading to Financial Irregularities and Political Corruption,
from the Stories of Harshad Mehta to the Bihar Fodder Scam, offering a comprehensive understanding of the
past and its impact on the present. Greed spread uncontrollably, infecting the pharmaceutical sector with its
own set of shares. Not to mention that whistleblowers are the most susceptible to scrutiny from the employers
under whom they work and the risks of exposing the defects in the administrative leviathan. Ever sparked
controversy following the death of the prime Whistleblowers in the ongoing Boeing Trials, and the revelations
of Edward Snowden and his discoveries about the NSA put the question of what "It means to be a Whistleblower
Today? And What risks does it bring with it?." Lawmakers introduced the WhistleBlowers Protection Act in
2014 to protect whistleblowing and have since attempted to reinforce it in the Age of the Internet, along with its
blessings and evils. WhistleBlowing sometimes may be a Story of David vs. Goliath, as observed in the
Gamestop Saga and India's Vyamapam Scam, uniting people against the wrongs of Multi-Billion Dollar Mega
machines. Or a Politicised arsenal aimed at destabilizing another country by waging a tactical economic war.
By spotlighting its transformative potential and inherent challenges, this paper underscores the urgent need for
stronger protections, ethical considerations, and a societal shift toward valuing truth over complicity. It's a call
to action for all stakeholders to prioritize the protection of whistleblowers.
__________________________________________________________________________________________
Keywords: Whistleblowing, Change & Accountability, Scandals, Transparency, Corruption,
Regulation, Implication

1The Committee to Organize Seminars, Workshops, Extra-Murals and Special Lectures, Athena 5.0, Dr. Ram
Manohar Lohiya National Law University, Team Code 15.
 _____________________________________________________________________
DECLARATION OF ORIGINALITY
_____________________________________________________________________

I declare that the paper titled The Whistleblowing Paradox: Truth, Risk, and Retaliation is
my original work. I affirm that:

1. This paper is the result of my own research and efforts.

2. All sources used or quoted have been appropriately referenced and cited in
accordance with academic standards.
3. No part of this work has been submitted for credit in any other academic program or
institution.
4. This paper does not contain any material that infringes the rights of others, including
content without proper acknowledgement.

I understand that a breach of this declaration will result in immediate action by the organising
committee and also may lead to disqualification from the competition.

Team Code 15
Dr. Ram Manohar Lohiya National Law University
Date: 5/01/2025
___________________________________________________________________________
INTRODUCTION
___________________________________________________________________________

Whistleblower is a person who raises concern about wrongdoing in an organisation or by

body of people reveals misconduct may be violation of law, threat to public interest such as
fraud, health/safety violations, corruption, etc.Internal whistleblowing refers to raising of an
alarm within an organisation while external whistleblowing awakens outside agencies like
media, regulators,etc.2 Raising an alarm truthfully about malfunctioning of a judicial
institution dealing with State revenue matters (CESTAT) - Held, is not contemptuous. 3

Whistleblowing has become one of the most effective tools in the modern world to fight
against corruption and increase transparency. The whistleblowers are very important in
various industries including finance, health sector, public sector and aviation sector since they
raise awareness of vices within such organizations leading to changes. Whistleblowing is the
act of reporting and is only effective if encouraged and protected since it helps in preventing
fraud and other unethical practices which may be compared to insider trading in as far as
exposing corporate crimes is concerned. However, it also raises issues that involve
managerial motives, which may at times lead to conflicts within organisations as it changes
the structure of command and control and the decision making structure.

Thus, the role of society and the legislation has changed and developed to a greater extent to
appreciate and protect whistleblowers. The whistleblowers who were once termed as
betrayers are now hailed as heroes especially when they expose wrongdoings in famous
organizations such as Enron and WorldCom. 4 Some laws for instance the False Claims Act
and the Whistleblower Protection Act offer protection and incentives to report cases of fraud
and other vices thus making people to report cases of fraud and other vices unabridged.

2 Indirect Tax Practitioners' Assn. v. R.K. Jain (2010) 8 SCC 281

3 Constitution of India 1950, art 129.
4Macey J, 'Getting the Word out about Fraud: A Theoretical Analysis of Whistleblowing and Insider Trading'
(2007) 105(8) Michigan Law Review 1899 http://www.jstor.org/stable/40041569 accessed 27 December 2024.
Over time, societal attitudes and legislative frameworks have evolved to better recognize and
protect whistleblowers. Once stigmatized as betrayers, whistleblowers are increasingly
celebrated for their courage, particularly in landmark cases like those at Enron and
WorldCom. Legal provisions, such as the False Claims Act and the Whistleblower Protection
Act, provide crucial protections and rewards, encouraging individuals to act despite personal
and professional risks.

Yet, the path remains fraught with challenges, including retaliation, legal battles, and societal
scrutiny. The digital age has further transformed whistleblowing by enabling anonymous
disclosures and global dissemination of information. While these advancements strengthen
the practice’s reach, they also raise questions about the credibility of disclosures and the need
for robust safeguards.5 This evolving landscape underscores whistleblowing's dual role as a
tool for justice and a source of organizational and ethical debate, highlighting its
indispensable place in contemporary governance and accountability.

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WHISTLEBLOWING ACROSS SECTORS: INTEGRATING MEDIA ADVOCACY

AND LEGAL PROTECTIONS

_________________________________________________________________________

i) Financial Whistleblowers: Exposing Greed and Scandals from Madoff to Mehta

The financial sector has been a hotspot for corruption and regulatory and institutional failures
which has led to disastrous scams with alarming consequences.6 Another common
denominator in these cases is that systemic corruption and inadequate protection of
whistleblowers have compounded the problems.

The Lehman Brothers bankruptcy which occurred in the year 2008 is one of the clear
examples of institutional failure and regulatory failure.7

5Ting MM, 'Whistleblowing' (2008) 102(2) American Political Science Review 249
http://www.jstor.org/stable/27644514 accessed 27 December 2024.
6Baily MN, Litan RE and Johnson MS, 'The Origins of the Financial Crisis' (2008) Brookings Institution Paper.
7Adrian T and Shin HS, 'Liquidity and Leverage' (2010) 19(3) Journal of Financial Intermediation 418.
This paper identifies how and why Lehman Brothers engaged in risky mortgage backed
securities and collateralized debt obligations by an examination of the lack of accountability
in financial decision making as well as the corruption that existed in rating agencies that rated
these securities.8

These factors worsened in a way that whistle-blowers within such institutions had no safe
reporting channels or they were threatened for raising concerns over malpractice. 9 The
Harshad Mehta scam of 1992 in India also pointed out how corruption became rampant in the
banking network and how Mehta exploited it to the hilt and manipulated the funds using
forged bank receipts.10

Lack of whistle-blower protection measures made sure that such incidents were not reported
until a lot of damage had already been done in the process. It is thus important that there be
ways of safeguarding whistle-blowers for they play an essential role in avoiding corruption
of institutions and enhancing market integrity.11

The Bernie Madoff’s Ponzi scheme also exemplifies this. 12 Madoff’s billion dollar fraud
could have been prevented if only there was proper oversight and the SEC would have
heeded the whistle-blowers’ warnings.13 The research on whistle-blower protection indicates
that such failures can be attributed to the absence of clear channels through which the
malpractices are reported as well as the absence of safeguards for the whistle-blowers. The
aftermath of this case underlined the importance of having well-defined whistle-blower laws
so that risks in the financial markets can be reduced.14

The Enron scandal is one of the most famous examples of corporate crime that could have
been prevented if the whistle-blowers were supported by strong legal protection.15

8Adrian T and Shin HS, 'Liquidity and Leverage' (2010) 19(3) Journal of Financial Intermediation 418.
9Crotty J, 'Structural Causes of the Global Financial Crisis: A Critical Assessment of the "New Financial
Architecture"' (2009) 33(4) Cambridge Journal of Economics 563.
10Dalal S, The Scam: Who Won, Who Lost, Who Got Away (Penguin India 2018).
11Singh JP, 'Post-Harshad Mehta Scam Regulatory Reforms in Indian Capital Markets' (1993) Economic and
Political Weekly.
12Henriques DB, The Wizard of Lies: Bernie Madoff and the Death of Trust (Times Books 2011).
13Markopolos H, No One Would Listen: A True Financial Thriller (Wiley 2010).
14Coffee JC Jr, 'What Went Wrong? An Initial Inquiry into the Causes of the 2008 Financial Crisis' (2009) 9(1)
Journal of Corporate Law Studies 1.
15Healy PM and Palepu KG, 'The Fall of Enron' (2003) 17(2) Journal of Economic Perspectives 3.
This was seen in Enron which schemed in the financial statements with the help of its
auditors in a way that was a clear-cut case of institutional corruption.16

As stated earlier, corruption in the financial systems’ systems is allowed to thrive if there are
no reporting mechanisms or if whistle-blowers are persecuted or feared for loss of their
jobs.17 On a global level, the financial crisis of 2008 demonstrated how financial institutions,
regulation, and corruption are interconnected. This was made possible by the absence of
oversight mechanisms which permitted armchair predation and unrestrained risk taking.18

i. a. Media’s Role in Exposing Financial Scandals

The media plays a crucial role in demystifying financial scandals by conducting in-depth
investigations, analyzing whistleblower disclosures, and presenting findings to the public in
comprehensible formats. In Bernie Madoff’s Ponzi scheme, investigative journalists exposed
how regulatory bodies ignored repeated warnings, thereby emphasizing the systemic
negligence that allowed the fraud to persist.19

Media outlets further amplified these revelations, creating public outrage that pressured
authorities to act decisively. Similarly, in the case of Lehman Brothers, the media dissected
the complexities of financial derivatives, making the risks and ethical breaches
understandable to a wider audience.20

i. b. Challenges and Legal Safeguards

Financial whistleblowers often face career-ending repercussions. Legal frameworks like the
U.S. Dodd-Frank Act provide whistleblowers with protections, including anonymity and
financial rewards for actionable tips.21

16McLean B and Elkind P, The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron
(Portfolio Trade 2003).
17 Coffee, J. C. Jr. (2009). What went wrong? An initial inquiry into the causes of the 2008 financial crisis.
Journal of Corporate Law Studies.
18 Crotty, J. (2009). Structural causes of the global financial crisis: A critical assessment of the 'new financial
architecture'. Cambridge Journal of Economics.
19 Coffee, John C. Jr. “What Went Wrong? An Initial Inquiry into the Causes of the 2008 Financial Crisis.”
Journal of Corporate Law Studies, vol. 9, no. 1, 2009, pp. 1–22.
20 Henriques, Diana B. The Wizard of Lies: Bernie Madoff and the Death of Trust. Times Books, 2011.
21 Markopolos, Harry. No One Would Listen: A True Financial Thriller. Wiley, 2010.
However, media outlets also play a pivotal role in protecting whistleblowers by ensuring their
identities remain confidential during reporting. Investigative partnerships between
whistleblowers and trusted journalists help maintain anonymity while ensuring that
disclosures reach the public effectively. Collaborative efforts between the media and
advocacy groups can amplify these disclosures responsibly, fostering a culture of
transparency while safeguarding whistleblowers.22

The ILO report highlights how creating a culture of ethical transparency within institutions,
backed by strong whistle-blower protection, could prevent such global crises.23

ii) Corruption Unmasked: Administrative Whistleblowers and Institutional Failures

Corruption and misconduct in the administrative realm have been a severe problem in India
as well as other countries of the world. The following cases demonstrate the seriousness of
these problems and their social consequences, revealing the weaknesses of the mechanisms
of accountability, transparency, and governance.

On the international level, whistleblowers, whose actions are often accompanied by the
disclosure of information, are able to make the world know the truth about systemic
misconduct. Edward Snowden told the world about the mass surveillance programs of the
National Security Agency of the United States of America which raised serious concerns
over privacy of citizens and sparked debate on the issue of security versus freedom.24

Likewise, Chelsea Manning released classified documents which included information on

atrocities committed by the military which created a lot of discussion regarding the
transparency of governments. These cases show that whistleblowers are not only exposed to
retaliation but also put their lives at risk in order to report misconduct.25

22 Bowen, Robert M., et al. “Whistle-Blowing: Target Firm Characteristics and Economic Consequences.” The
Accounting Review, vol. 85, no. 4, 2010, pp. 1239–71.
23Acharya VV and Richardson M, Restoring Financial Stability: How to Repair a Failed System (Wiley 2009).
24Greenwald G, No Place to Hide: Edward Snowden, the NSA, and the U.S. Surveillance State (Metropolitan
Books 2014).
25Nicks D, Private: Bradley Manning, WikiLeaks, and the Biggest Exposure of Official Secrets in American
History (Chicago Review Press 2012).
In India, the cases of administrative scandals have created a very negative social and political
impact in the country. The Bihar fodder scam which involved embezzlement of funds that
were meant for cattle feed is one of the biggest cases of corruption in public administration. 26

Likewise, the Vyapam scam in Madhya Pradesh brought to the limelight the corrupt
practices
in recruitment and admission processes in educational and professional fields. 27 These cases
revealed the systemic failures and rampant corruption at high levels of management in the
organisations.

Another major case was the Vishaka Guidelines which were introduced in response to the
Bhanwari Devi case and provided the basis for subsequent laws on sexual harassment at the
workplace in India. These guidelines showed that the administrative inaction on social issues
forced the court to intervene.28

ii. a. Media’s Role in Exposing Corruption

The media acts as a watchdog and exposes cases of administrative malpractice and blows
exposes whistleblower revelations to the national news. In India’s Bihar fodder scam
journalists conducting investigations reported how public funds had been misused for
decades which resulted in the case being heard in the courts.29

ii .b. Strengthening Whistleblower Protection

In the case of Satyendra Dubey, media channels converted his anonymous letter into a
national debate on the corruption in the Golden Quadrilateral highway project thus revealing
the loopholes in the governance and the administrative policies.30

26Chaturvedi R, 'Fodder Scam: An Analysis of Systemic Corruption' (1997) 32(5) Economic and Political
Weekly.
27Sharma P, 'Vyapam Scam: Anatomy of a Political and Bureaucratic Nexus' (India Today 2015).
28Singh K, 'Vishaka Guidelines and Beyond: Addressing Workplace Sexual Harassment in India' (2010) 17(1)
Indian Journal of Gender Studies.
29Chaturvedi R, 'Fodder Scam: An Analysis of Systemic Corruption' (1997) 32(5) Economic and Political
Weekly.
30Khatri R, 'The Martyrdom of Satyendra Dubey: Lessons in Whistleblower Protection' (2003) The Hindu.
Efforts to address these challenges have included the enactment of significant policies like
the WhistleBlowers Protection Act, 2011, which provides a framework for reporting
corruption, and the Right to Information Act, 2005, aimed at increasing transparency. 31
However, these measures often fall short due to procedural flaws, lack of implementation,
and inadequate protection mechanisms.32

On the international level, measures such as whistleblower protections under the U.S.
DoddFrank Act encourage reporting of misconduct with financial incentives. However, such
mechanisms are still developing in India and are patchy; there are still weaknesses in the
protection of whistleblowers’ identities and the coverage only applies to the public sector
organizations.33 For example, despite existing policies like the WhistleBlowers Protection
Act, due to the lack of strong enforcement mechanisms, the victims are retried and punished
for speaking out against corruption.

Such cases include public anger, loss of faith in institutions, and increased pressure for
change. The Bihar fodder scam raised cases of political corruption and several political
leaders were charged in court; on the other hand, the Vyapam scam heist led to several
suspicious deaths. These events show that corruption in the public service does not only
affect the governance systems but also the public’s confidence and even their safety.

In the international and the national level, the lessons from these cases can be learned as the
importance of legal framework, oversight institutions and protection of whistleblowers. Thus,
fighting corruption in the system cannot be done in isolation of addressing issues that
concern transparency, accountability and the protection of whistleblowers.

iii) Aviation Accountability: Boeing Trials and the Price of Truth

Safety in the aviation industry is an important aspect and whistleblowing is a way of

ensuring that safety is maintained or improved in an industry that is prone to mistakes which
can have severe consequences.

31Bhushan P, 'The Whistleblowers Protection Act: A Toothless Measure?' (2014) The Indian Express.
32Sharma A, 'RTI in India: A Tool for Transparency and Accountability' (2006) 41(10) Economic and Political
Weekly.
33Pacella J, 'The Impact of Whistleblower Provisions in the Dodd-Frank Act on Corporate Governance' (2012)
49(2) American Business Law Journal.
Whistleblowers prevent negligence but they are the ones who are put at risk of losing their
lives or facing other severe consequences for telling the truth. Their efforts reveal the
system’s weaknesses and challenge the system to make necessary changes so that such
tragedies do not happen in the future.

The Boeing 737 MAX airplane tragedies of 2018 and 2019 exposed the severe impact of
organizational mismanagement. MCAS was identified as the cause of the crashes which
happened due to bohring errors in the design of the plane as well as lack of proper training of
the pilots. These issues were brought out by whistle blowers within Boeing Company long
before the accidents happened yet the issues were overlooked so as to enable the company to
make more profits where it had not initially planned to make profits from. This is a call for
better policies that will ensure the protection of whistleblowers and prevention of such
disasters.

The Boeing 737 MAX airplane crashes in 2018 and 2019 were a clear reminder of the risks
that organizations take when they do not enforce proper business practices. Investigations
revealed that the cause of the accidents was the automatic safety system, the Maneuvering
Characteristics Augmentation System (MCAS).

iii. a. Media’s Role in Aviation Accountability

Recent incidents reported by various news agencies and media outlets in 2024 further
highlight ongoing challenges. Mechanical failures, pilot errors, and maintenance lapses
caused several crashes and near-misses.34 The crash of Jeju Air Flight 2216 35
from Bangkok
to Muan International Airport, South Korea, crash-landed without deploying its landing gear.
The aircraft skidded off the runway and collided with a concrete embankment, resulting in
179 fatalities out of 181 occupants. Another case, Qantas Flight 520 36 On November 8, 2024,
a Boeing 737-800 en route to Brisbane International Airport suffered a right engine failure
and returned to Sydney Airport. Debris from the engine caused a grass fire near the runway.
No injuries were reported among the passengers and crew.

34'Major Aviation Incidents of 2024: Crashes and Close Calls' (The Business Standard)
https://www.tbsnews.net/world/major-aviation-incidents-2024-crashes-and-close-calls-1029516 accessed 30
December 2024.
35Reuters, 'South Korea Police Raid Jeju Air and Muan Airport Over Fatal Plane Crash' (2 January 2025)
<www.reuters.com> accessed 3 January 2025.
36'List of Accidents and Incidents Involving the Boeing 737' (Wikipedia, 25 November 2024)
<en.wikipedia.org> accessed 3 January 2025.
Additionally, incidents like the mid-air malfunction of Swiftair Flight 5960 37 On November
25, 2024, a Boeing 737-400SF registered as EC-MFE, operating as Swiftair Flight 5960,

crashed on approach to Vilnius Airport in Lithuania, raised alarms about improper pilot
training programs. Whistleblowers exposed falsified training certifications and outdated
simulators, prompting FAA investigations and reforms.38

These incidents emphasize the importance of acting on whistleblower disclosures to improve

safety.

Whistleblowing also uncovered falsified maintenance records and inadequate pilot training
programs. Reports revealed falsified certifications and outdated simulators, prompting FAA
investigations. Despite facing retaliation such as job loss and blacklisting, whistleblowers’
actions led to reforms, including stricter compliance standards and improved maintenance
protocols.

iii. b. Remaining Gaps and Legal Safeguards

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR21) 39
provides legal protection for aviation whistleblowers. Administered by OSHA, it prohibits
retaliation against employees who report safety violations. However, gaps remain, as some
categories of workers, such as airport security screeners, are excluded. Expanding coverage
under AIR21 is essential to ensure all aviation employees can report safety concerns without
fear.

Moreover, Boeing agreed to a deferred prosecution settlement, paying $2.5 billion for
deceiving the FAA about the 737 MAX’s MCAS system, contributing to two fatal crashes.
The settlement includes fines, airline compensation, and a victims’ fund. Boeing admitted
wrongdoing and committed to compliance improvements while avoiding independent
monitoring.40

37'List of Accidents and Incidents Involving the Boeing 737' (Wikipedia, 25 November 2024)
<en.wikipedia.org> accessed 3 January 2025.
38Cleveland PA and Price JR, 'The Failure of Federal Aviation Administration Regulation' (2003) 8(1)
Independent Review 53.
39Wendell H. Ford Aviation Investment and Reform Act for the 21st Century, Pub L No 106-181, 114 Stat 61
(2000) [hereinafter AIR21] (codified as amended in scattered sections of 49 USC).
40'Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay Over $2.5 Billion' (United States
Department of Justice, 7 January 2021) https://www.justice.gov/opa/pr/boeing-charged-737-max-fraud-
conspiracy-and-agrees-pay-over-25-billion accessed 30 December 2024.
Aviation whistleblowing remains indispensable for fostering transparency and accountability.
To support this, stronger legal protections, expanded legislative coverage, and independent
oversight mechanisms are needed.

Whistleblowers’ courage in exposing safety risks drives reforms that protect lives and
maintain public trust in aviation. Safeguarding their rights ensures a safer and more
accountable industry.

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IMPLICATIONS IN WHISTLEBLOWING

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1. Corporate Giants vs. Whistleblowers: A David vs. Goliath Narrative

From the corporate perspective, whistleblowing appears as a ‘David Vs Goliath’ battle where
an employee reports financial misconduct within an enterprise. According to Bowen et al.
(2010) whistleblowers are generally aimed at large growth seeking firms with deep market
integration and weak internal control. The above named entities though powerful are not
impervious to whistleblowing since reporting 2. of 8% the decline cases in leads stock to
value adverse post-allegations, economic with consequences. cases involving average
earnings companies mismanagement experience causing a stark 7. 3% drop.41

Whistleblowing undermines the internal control and management narrative and may lead to
shareholders’ lawsuits, earnings restatement, and changes in governance, including CEO and
board changes. Moreover, the exposure of corporate governance failings forces companies
into reactive compliance, often with adverse effects on the company’s image.

For whistleblowers though, the journey is not a smooth one. Retaliation, job insecurity and
isolation work to ensure that a hostile environment is created especially where there are
strong internal bureaucratic norms. This conflict between the underdog and the corporate
giant shows the structural inequality of power which is the hallmark of whistleblowing cases.

41Bowen RM and others, 'Whistle-Blowing: Target Firm Characteristics and Economic Consequences' (2010)
85(4) The Accounting Review 1239 http://www.jstor.org/stable/20744158 accessed 30 December 2024.
However, the effectiveness of their actions is the positive changes that they are able to bring
and make organizations address on themselves the issues that affect them—a modern David
with a slingshot that is transparency.

2. Economic Fallout: Gray Zones and Financial Repercussions

Blowing the whistle poses a number of financial as well as reputational risks to firms, but
such revelations are often based on the grey areas of corporate governance. Bowen et al.
(2010) state that whistleblowing is not a minor activity as firms that are involved in financial
irregularities are made to suffer the consequences for a long time. Earnings restatement,
along with the negative operational and stock returns, emphasise the costs of such
revelations.

The healthcare and defence sectors are especially sensitive to such allegations as there are
incentives for whistleblowing and recovering of the lost funds with a share of the
commission. This creates the moral ambiguity of the territory where people get a bonus for
exposing corruption while doing so for ethical reasons.

Strangely, while such allegations often harm corporate giants, they may also spark important
enhancements in governance. Whistleblowers thus expose system vulnerabilities and the
management is left with no option but to enhance controls in order to prevent future vices
hence the need to encourage transparency which may be costly but is crucial for
organizations’ health.

3. The Fine Line: Regulations Supporting or Undermining Whistleblowing

The role of legal frameworks is to define the conditions of whistleblowing, to support it or to

set limits.

By identifying the main regulatory features, understanding how the Sarbanes-Oxley Act of
2002 protected whistleblowers and imposed sanctions for retaliating against them and
provided for anonymous reporting. In the same way, False Claims Act provisions enhance
the disclosure by awarding incentives to the whistleblowers. 42

42Chiu RK, 'Ethical Judgment and Whistleblowing Intention: Examining the Moderating Role of Locus of
Control' (2003) 43(1/2) Journal of Business Ethics 65 http://www.jstor.org/stable/25074976 accessed 30
December 2024.
On the other hand, some of the regulations act as a barrier to whistleblowing. For instance,
there are strict non-disclosure agreements and rather vague reporting requirements that make
the whistleblower’s decision easier. Other regulations also influence cultural perceptions as in
China, the culture does not support whistleblowing, that is reporting against corruption is
considered unprofessional.43

The effectiveness of the whistleblowing laws thus depends on their proper enforcement and
the compliance of organizations. While some systems effectively protect the whistleblowers,
others in one way or another deter would-be whistleblowers thus creating something of a
paradox. Therefore, the regulatory environment has to be very careful so as to build trust
while at the same time ensuring that organizations are not weakened.

4. Media Narratives and Public Perception

The media influences people’s opinion by painting the whistleblowers either as the modern
day heroes or as dissents with self-serving motives. This is well-illustrated by Edward
Snowden’s case. Investigative reports published the disclosures he made on mass surveillance
which generated debates on privacy and government’s rights across the world. But these
reports also brought him retaliations and social banishment highlighting the risk of media
publicity.44

5. Ethics and Legal Safeguards

Legal frameworks must mandate collaboration between media outlets and whistleblower
advocacy groups to ensure disclosures are responsibly amplified. Ethical journalism
safeguards whistleblower identities while informing the public, balancing the need for
transparency with the imperative to protect individuals from harm. 45

43Delmas C, 'The Ethics of Government Whistleblowing' (2015) 41(1) Social Theory and Practice 77
http://www.jstor.org/stable/24332319 accessed 30 December 2024.
44 Greenwald, Glenn. No Place to Hide: Edward Snowden, the NSA, and the U.S. Surveillance State.
Metropolitan Books, 2014.
45Alford CF, Whistleblowers: Broken Lives and Organizational Power (Cornell University Press 2001).
________________________________________________________________________

GOVERNMENT FRAMEWORKS AND POLICIES: BALANCING

ACCOUNTABILITY AND PROTECTION
_________________________________________________________________________

Government policies on whistleblowing aim to balance protection for individuals with

systemic accountability. Legal frameworks criminalize retaliation, mandate anonymous
reporting mechanisms, and incentivize disclosures through financial rewards. However,
implementation challenges, cultural norms, and loopholes in enforcement can undermine
their effectiveness, highlighting the need for robust oversight and ongoing policy refinement.
Moreover policy frameworks in countries like United States, United Kingdom and India were
created in response to tackle the administrative and financial hurdles and can be better
understood by the help of the comparative table outlining the whistleblowing laws in India,
the United Kingdom (UK), and the United States (US) :-

Aspect India UK US

Primary WhistleBlowers Public Interest Sarbanes-Oxley Act,

Legislation Protection Act, 2014 Disclosure Act, 1998 2002; Dodd-Frank
(PIDA) Act, 2010

Purpose Protect whistleblowers Protects workers Encourages reporting

in cases of corruption making disclosures in of corporate fraud and
and abuse of power. public interest. securities violations.

Coverage Public servants, Covers all employees, Covers employees of

private entities under contractors, trainees, publicly traded
specific regulations. and others companies,
subsidiaries, and
contractors.

Findings Corruption, abuse of Six categories include Fraud, securities

power, misuse of criminal offenses, violations, and
funds, etc. breach of legal misrepresentation to
obligations, and
 environmental investors.
damage.

Agencies Central or State Employer, regulatory Securities Exchange

Vigilance bodies, and prescribed Commission (SEC).
Commission. persons. Internal disclosures are
also protected.

Protection Protection from Protection against Prohibits retaliation

Mechanism victimization and unfair dismissal and (dismissal, harassment,
identity concealment. detriment. demotion). Provides
monetary rewards.

Anonymous Identity disclosure No strict rule; Allows anonymous

Reporting required for anonymity reporting to SEC but
investigation, limited discouraged due to identity must be
anonymity. complications. revealed for awards.

Monetary No monetary No financial Offers 10-30%

Rewards incentives for incentives; discussions rewards for tips
whistleblowers. on introducing leading to sanctions
rewards. above $1 million.

Limitations Delays in enforcement, Costly legal battles, High threshold for

identity disclosure lack of cash incentives, awards and eligibility.
issues, and pending and reliance on Time limits for
amendments. 46 Employment Tribunal. claims.47

___________________________________________________________________________

46Varshney N and Murjani RP, 'Whistleblowing Regime in The U.S. and the U.K.: The Way Ahead for India'
(2016-17) 6 CNLU Law Journal 107.
47Kumar M, 'Whistle Blowers Protection Law in India: Challenges Ahead' (2021) 13 RML National Law
University Journal 120.
 CONCLUSION: REFLECTING ON WHISTLEBLOWING—COURAGE,
CONTROVERSY, AND CONSEQUENCE

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The act of whistleblowing plays an essential role in promoting transparency and

accountability across the spectrum of governance, corporate ethics, and public
administration. It has also unveiled systematic corruption, for instance in the cases of Lehman
Brothers and Harshad Mehta, and propelled legislative reforms like the WhistleBlowers
Protection Act of 2014.

But this pathway is anything but simple. Whistleblowing forces individuals into a David-vs-
Goliath struggle against enormous systems, where retaliation, ostracization and career
annihilation are permanent risks. It is a double-edged sword, as it spurs systemic reform but
comes at a very high price for whistleblowers.

The financial, administrative and aviation sectors highlight the diversity of whistleblowing’s
influence. Lehman Brothers filed bankruptcy during the 2008 financial crisis — an
institutional failure compounded by a lack of strong guardrails.

Apart from the personal toll, whistleblowing touches on moral ambiguity: Is all such action
inherently virtuous, or does it drift into weaponized dissent? This paper has investigated these
complexities exploring the implications of whistleblowing, the relationship between
whistleblowers and media, and the transformative potential of whistleblowing.

It brings to the forefront the importance of cultivating a disposition toward truth over
complicity and contemplating the moral questions that this entails.

As readers, you are invited to deliberate: Where do we draw the line? Is whistleblowing an
unassailable act of bravery, or does it carry hidden costs that merit caution?

"The truth is rarely pure and never simple." – Oscar Wilde.48

“So Would you risk it all to reveal it?49

48Banionis J, Lalla N and West D, 'Do Libraries’ Needs Still Match Publisher Offerings? "The Truth Is Rarely
Pure and Never Simple" (Oscar Wilde)' (2015) Purdue University Libraries
https://doi.org/10.5703/1288284315565.

49Mitchell D, Shadows Unveiled: The Cost of Truth (Horizon Publishing 2023) 112.