Blowing the Whistle | Differentiate between internal and external whistleblowers

Differentiate between internal and external whistleblowers.

Internal whistleblowers are employees who discover misconduct in the workplace and communicate this to their supervisor, who then follows established procedures to address the misconduct within the organization. 

External whistleblowers are employees who discover corporate misconduct and choose to bring it to the attention of external parties, such as law enforcement agencies or the media.


Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick: Doing What’s Right in a Competitive Market | Key Terms

Key Terms - Making it Stick: Doing What’s Right in a Competitive Market

Ethics Officer:  A senior executive responsible for monitoring the ethical performance of the organization both internally and externally.

Organizational Integrity:  A characteristic of publicly committing to the highest professional standards and sticking to that commitment. 

Proactive Ethical Policies:  Policies that result when a company develops a clear sense of what they stand for as an ethical organization.

Reactive Ethical Policies:  Policies that result when organizations are driven by events and/or fear of future events.

Sustainable Ethics:  An ethical culture that persist long after the latest public scandal or the latest management buzzword.

Transparent Organization:  An organization that maintains open and honest communications with all stakeholders

Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Key Terms

Key Terms - Blowing the Whistle

External Whistle-Blowing:  When an employee discovers corporate misconduct and chooses to bring it to the attention of law-enforcement agencies and/or the media.

Internal Whistle-Blowing:  When an employee discovers corporate misconduct and brings it to the attention of his or her supervisor, who then follows established procedures to address the misconduct within the organization.

Whistle-Blower:  An employee who discovers corporate misconduct and chooses to bring it to the attention of others.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | Key Terms

Key Terms - Corporate Governance

Audit Committee:  An operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for monitoring the financial policies and procedures of the organization—specifically the accounting policies, internal controls, and the hiring of external auditors.

Board of Directors:  A group of individuals hired to oversee governance of an organization. Elected by vote of shareholders at the annual general meeting (AGM), the true power of the board can vary from institution to institution from a powerful unit that closely monitors the management of the organization, to a body that merely rubber-stamps the decisions of the chief executive officer (CEO) and executive team.

Compensation Committee:  An operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for setting the compensation for the CEO and other senior executives. Typically, this compensation will consist of a base salary, performance bonus, stock options, and other perks.

“Comply or Else”:  A set of guidelines that require companies to abide by a set of operating standards or face stiff financial penalties.

“Comply or Explain”:  A set of guidelines that require companies to abide by a set of operating standards or explain why they choose not to.

Corporate Governance:  The system by which business corporations are directed and controlled.

Source: Ghillyer_Business Ethics A Real World Approach 2e