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Case study on whistleblowing

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Case study on whistleblowing

  1. 1. INTRODUCTION Perception Whistle blowing Company information Case study SWOT Analysis Conclusion  Question Answer
  2. 2. Perception Definition :- Perception is the process of attaining awareness or understanding of sensory information's. It comes from the Latin word perceptio which means receiving, collecting and action of taking. 1. The ability to see, hear, or become aware of something through the senses. 2. The state of being or process of becoming aware of something in such a way.
  3. 3. Process Of Perception
  4. 4. Whistle blowing What is whistle blowing? The term whistle blowing can be defined as raising a concern about a wrong doing within an organization. Who is Whistle blower:- is a person who exposes misconduct, alleged dishonest or illegal activity occurring in an organization. Types of whistle blower i. Internal :- it is blowing the whistle inside the organization. For example designated officer, workers or bosses in the same organization. ii. External :-blowing the whistle to law enforcement agencies or to teams worried with the matters for example Lawyers, Mass media, law enforcement.
  5. 5. Problem identification whether the whistle blower is a saint or sinner for an organization? • PROS: Whistle-blowers keep companies honest. It is a strong means to deter company wrong doings. In fact, if we had more whistleblowers there may not have been the economic crisis caused by all sorts of bad behavior in the banking and lending sector. Top management needs to encourage whistle-blowing by employees when they see unethical practices. • CONS : At times it could become absolute a form of extortion. In the TAP case, it looks like Durand did not do his homework and address his concerns appropriately. 30% of the fine is a little high. We can discourage false whistleblowers with a more fair compensation policy.
  6. 6. Whistleblower Protection Act • In 2003, the Law Commission of India recommended the adoption of the Public Interest Disclosure (Protection of Informers) Act, 2002. • The Public Interest Disclosure and Protection of Persons Making the Disclosures Bill, 2010 was renamed as The Whistleblowers' Protection Bill, 2011 by the Standing Committee on Personnel, Public Grievances, Law and Justice. • The Whistleblowers' Protection Bill, 2011 was passed by the Lok Sabha on 28 December 2011. • In U.K, the public interest Disclosure Act 1998 provide a framework of Whistleblowers.
  7. 7. Example • Jeffrey Wigand, “The Insider” • Karen Silk wood, “Silk wood” • FDA Whistleblowers • Douglus Durand of TAP pharmaceuticals • Time Magazine’s 2002 Persons of the Year
  8. 8. The Whistleblowers: Time Magazine’s 2002 Persons of the Year • Cynthia Cooper of Worldcom • Coleen Rowley of the FBI • Sherron Watkins of Enron
  9. 9. TAP Pharmaceuticals • TAP Pharmaceuticals American pharmaceutical company headquartered in Lake Forest, IL. It was a joint venture formed in 1977 between Abbott Laboratories and the Japanese pharmaceutical company Takeda. President & CEO Yasuchika Hasegawa
  10. 10. Who is Douglas Durand • Douglas Durand is the paragon of a corporate whistleblower. Shortly after stepping in as vice president of sales at TAP Pharmaceutical Products in early 1995, he began to suspect the company was conspiring with doctors to overcharge the U.S. government’s Medicare program by tens of millions of dollars.
  11. 11. Products • TAP had several marketed products selling within the United States: • PREVACID (lansoprazole) • Lupron Depot (leuprolide) • Rozerem • FAMVIR • KAPIDEX
  12. 12. Case study on Whistleblowers saints or sinners? Douglas Durand, former Vice President of sales at TAP Pharmaceutical products He decided to blow whistle on TAP for collecting 2% fee from doctor as “Administrative Costs” which was a kickback Next he and Ainslie again built a case against TAP . He received bonus of $35,000 from TAP He quit the company. HE collected 500 boxes of documents containing evidences against TAP. Finally TAP settled the issue in 2001 & Durand’s take was $126 millions But, Prosecutors filed criminal fraud against TAP to send a strong signal to pharmaceutical industry. Then the holes in Durand’s story came to know - The kick backs of Durand never occurred. Bribing of Doctors into using their Drugs was actually paid by Doctors themselves. Boston Federal Jury cleared of all charges. Durand was now retired.
  13. 13. Case Analysis How he was perceiving things? There are process of perception:- a. Receiving stimuli -through hearing. b. Selection- Learning c. Organizing- Closure d. Interpretation- perceptual set
  14. 14. SWOT Analysis on whistleblower S - He was a ethical and robust person who had the confidence to rise voice against unethical and wrong activities in the company. W – He perceived the things so quickly and took action on it , he also became greedy for money. O – He had the opportunity to stop the company from involving in unethical or illegal activity and get a big amount of money. T – He will never be appointed by any other company in future.
  15. 15. Conclusion • In this case of Douglas Durand former VP of sales for TAP, it was his good ethics and intuition to correct the wrongdoing of the organization while using the precise process of decision-making and chose to go through the court system to punish the company for what they have doing illegally. The reasoning is that having informants report on company wrongdoings is the best way to prevent illegal activity. The reason was for his innocence is there were 500 boxes of evidence and the case settled. In addition, it cost TAP over 1 billion dollars of legal fees to clear them of all wrongdoing.
  16. 16. Question Answer
  17. 17. Question Answer Q.1) Do you believe that whistle-blowing is good for organizations and its members, or is it, as David Stetler believes, often a means to extort large financial gains from companies? Q.2) How might the self-fulfilling prophecy affect a whistle-blower’s search for incriminating evidence against a company?
  18. 18. Question Answer Q.3) When frivolous lawsuits occur, how might these cases affect future whistle blowers who have a valid legal claim against their company? Would they be more or less likely to come forward? How might their claims be evaluated? What should companies and the government do to prevent frivolous lawsuits? Q.4) Do you believe that employee of a company have an ethical obligation to first attempt to report wrongdoings to member of the company itself, or should they go straight to the authorities when they suspect illegal activity?
  19. 19. Team Work Name of team members Parveen Bano Mahima Bajpai Neha Panday Poonam kumari MBA-Ist SEM Group-’B’
  20. 20. For paying attention