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Shel Holtz
Communicating at the Intersection of Business and Technology
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Whistleblowing is coming soon to a private-sector company near you

Whistleblowing is coming soon to a private-sector company near you

Whistleblowers
Image (c) Canstock
Back in 2006, Michael De Kort was a Lockheed Martin engineer working on a Coast Guard contract when he became increasingly convinced that the work his employer was doing left the ships vulnerable to attack. According to De Kort, blind spots in the vessel’s surveillance system would expose the crew, the communications system was vulnerable to eavesdropping, and some of the equipment wouldn’t be able withstand extreme cold temperatures.

De Kort tried to get people to listen to his concerns, contacting everyone from his bosses to government investigators to congressmen. Unable to get anyone to pay attention, he finally resorted to posting his concerns in the form of a 10-minute YouTube video. Shortly afterwards, he was laid off.

De Kort’s story got some coverage (like this Washington Post piece), and in 2008 he was recognized for his efforts with the Carl Barus Award for Outstanding service in the Public Interest from the IEEE Society. He is listed in the Online Ethics Center for Engineering and Research. But little about his experience would inspire others to blow the whistle on unethical practices.

In fact, whistleblowers usually don’t end up well. Efforts to improve outcomes for whistleblowers have been stymied at every turn. What seemed like a positive step by the U.S. Senate in approving the Whistleblower Protection Act by unanimous consent turned into just another roadblock when a senator placed an anonymous secret hold on the law, which wold have allowed federal workers to report government corruption.

Things are changing for whistleblowers these days, though. Edward Snowden is the latest whistleblower to have the lights of both mainstream and social media shined upon him. While he is being vilified as a traitor by some, others proclaim him a hero. It’s a pattern we have seen with Bradley Manning and Julian Assange.

I am taking no position in this article on the rightness or wrongness of Snowden, Manning and Assange’s actions. But whatever other motives may have driven them, each has spoken openly of their inability to do nothing in the face of what they perceived to be outrageous ethical violations. Whether or not you’re inclined to believe them, all three belong to a generation that places a higher value on ethics and, as a result, may be willing to risk more in order to do what they believe to be the right thing.

2010 study by the Ethics Resource Center found that 12% of Millennials believe it’s appropriate to post negative comments about their employers on social sites, while 19% said it’s okay to keep copies of confidential documents. In both cases, those numbers are higher than among Gen Xers and Baby Boomers. “This research is an important heads-up for employers,” Raytheon’s vice president for business ethics and compliance, Patricia Ellis, said at the time. Sandra Evaers-Manly, VP for corporate responsibility at Northrop Grumman, added, “These findings are leading indicators that are telling us, as employers, to adjust our training and ethics messages to help younger employees handle misconduct.”

(Interestingly, the Millennials’ premium on ethics doesn’t extend to the notion of the “work ethic,” according to a Pew Research report; even Millennials find that the work ethic is stronger in older generations.)

A more recent study from The Intelligence Group found that Millennials develop respect for brands based on the ethics, practices and image exhibited by the brand, not from promotion of product attributes. The study’s conclusion was characterized by a quote from a respondent, who said, “When I disagree with a brand’s ethics, I seek out their competitors, or alternatives to their product or service.”

With Millennials an increasing force in the workplace, businesses would be foolhardy to ignore the increased emphasis on ethics. Inevitably, the kind of whistleblowing that has recently been focused on government practices will find its way back into the private sector, with ethically-conflicted workers deciding their values are more important than their jobs and exposing wrongdoing (or, at least, what they believe is wrongdoing). Unauthorized disclosures like Michael De Kort’s are likely to become commonplace. And don’t ignore the impact of Snowden’s revelations on Booz Allen, the contractor that employed him; their stock has lost about 4% of its value since Snowden leaked secret documents (although some doubt the company will suffer long-term repercussions).

There are several things businesses need to do to prepare for the inevitable surge in private-sector whistleblowing. The first should be obvious: Don’t engage in the kind of behavior that would make someone want to blow the whistle.

Of course, the larger the company the harder it is for senior leadership to be aware of every activity taking place in the organization. Leaders who sincerely believe the company abides by its values can still be surprised to find bad behavior occurring at lower levels. Companies should begin work now to establish procedures for addressing employee whistleblowers. These steps need to ensure the employee is treated fairly and his or her allegations given an honest review.

Processes should be implemented and communicated that give employees an internal avenue for raising their concerns. Ombudsman programs have been effective where they have been implemented based on a sincere and authentic desire to root out unethical practices. Whatever process the organization settles on, it should satisfy employees that the company means what it says about stopping corruption, shortcuts and other unethical practices, and about how the employees who expose these practices will be treated.

Organizations that have not yet undertaken transparency audits need to get cracking. The more transparent the company is, the less likely it is that there will be anything for disgruntled employees to expose. Better internal communications can also help employees understand the context of their work. Comprehending the big picture can help employees avoid developing misperceptions.

Snowden, Manning and Assange are the tip of the iceberg. I don’t want to minimize it by labeling it as “fashionable,” but whistleblowers are more popular today than ever. Whistleblowing is about to get a lot more common. Is your organization ready to deal with it when it happens?

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