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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.
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
Problem identification whether the whistle
blower is a saint or sinner for an organization?
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
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
• In U.K, the public interest Disclosure Act
1998 provide a framework of
• Jeffrey Wigand, “The Insider”
• Karen Silk wood, “Silk wood”
• FDA Whistleblowers
• Douglus Durand of TAP pharmaceuticals
• Time Magazine’s 2002 Persons of the
Time Magazine’s 2002 Persons of the Year
• Cynthia Cooper
• Coleen Rowley
of the FBI
• Sherron Watkins
• TAP Pharmaceuticals
American pharmaceutical company
headquartered in Lake Forest, IL. It was
a joint venture formed in 1977
between Abbott Laboratories and the
President & CEO
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
• TAP had several marketed
products selling within the
• PREVACID (lansoprazole)
• Lupron Depot (leuprolide)
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
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
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
T – He will never be appointed by any
other company in future.
• 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.
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?
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
Name of team members