Identification and Protection of Corporate Whistle-blowers: A Legal Perspective

Naheeda Ali and Kanwal Iqbal Khan

Journal of Accounting and Finance in Emerging Economies, 2022, vol. 8, issue 1, 123-134

Abstract: Purpose: Internal audit, management review, and account reconciliation are popular tools for combating corporate fraud, but whistle-blowing is the most prevalent. Whistle-blowers frequently fear reprisal from coworkers and bosses. That is why they require protection and support. Many international organizations have advocated that countries adopt regulatory frameworks for protecting whistle-blowers. Therefore, the current study investigates the notion of whistle-blowing to compare it to Public Interest Disclosure Act 2017 of Pakistan, which was enacted. It identifies the influence of legal and ethical cultural norms in organizations on whistle-blowing behaviour.Design/Methodology/Approach: Qualitative method was used to analyze statutes, local and international protocols, rules and regulations of Pakistan and developed countries.Findings: The results suggest that the development of legal and ethical culture in a business may inspire whistle-blowing, and whistle-blowers may feel psychologically safe when reporting wrongdoings. Further, whistle-blowers must be legally supported and encouraged to function as corporate monitors, discouraging wrongdoers to the point of elimination.Implications/Originality/Value: It is suggested that the Act be revised to address the existed flaws. The Act is specifically amended to cover private-sector whistle-blowers, and an impartial, external reporting channel is established under one of the existing specialized organizations that deal with fraud. In particular, anti-corruption bodies, like National Accountability Bureau, has established as an external reporting and investigative channel.

Keywords: Corporate Law; Corporate Governance; Corporate Crime; Whistle-blower; Internal Audit (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:8:y:2022:i:1:p:123-134

DOI: 10.26710/jafee.v8i1.2204

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