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Monday, December 3, 2012

To be or not to be - to whistle or not to whistle?


In recent years, Democracy in Croatia has become significant in uncovering many scandals and illegal operations of some state owned companies. Or has it? Where are the people today who "whistled"? Is it better to expose these scandals or to ignore unethical business operations and "mind your own business"?

What is a whistleblower and how is it defined? The whistleblower (from English to blow the whistle) is a person who publicly warns others of illegal activities (such as corruption, misconduct, violation of law or abuse of authority) of guilty individuals. Generally, a whistleblower is a brave individual who, for moral reasons despite the risk to his own career, decide to speak publicly about illegal or unethical behavior superiors.

In Croatia, we have had several examples of public whistleblowers who, at the end of "whistling," are not regarded with respect as a result of their actions.

Perhaps the best known whistleblower in Croatia is Vesna Balenović who, ten years ago, revealed corruption in INA. As a result of her exposure, she was fired and never returned to her job. To this day, she is still struggling with the event, which, according to many, is now part of the distant past. In fact, most people have even forgotten who she is is she that too gaudy makeup blonde?

Damir Mihanović, one of the key witnesses of the case Fimi-Media, has suffered a similar fate following a public statement about corruption in Croatia Insurance Company. Because of his "whistleblowing," he lost his position as a board member of the company.

Additionally, Robert Mihanović still leads quixotic battles with the institutions of the state. He argues that for the past ten years, the Attorney General has warned of corruption in customs administration events. Now he argues that, in this respect, no one has done anything.

After a brief overview of how whistleblowers ended up in Croatia we ask ourselves: to whistle or not to whistle? What will be my fate if I discover some kind of corruption? Is it better not to expose what's going on and live a peaceful life?

Last week at our lecture, Mr. Mihanović sent a message asking us to think twice when we hear of corruption; it will be hard to compete with an unethical business.

How can we solve unethical business, corruption, and organized crime if we all keep quiet and close our eyes to what is going on? How will we ever prosper and thrive? How do we make a difference in society? Often we like to think of what Gandhi said: "Be the change you wish to see in the world." Is it just a saying that we repeat, share on social media, write in the signature of our mail, or put it on the slides of our presentation? Are we meant to speak these words to others but ignore them in practice?

Some other countries have been able to solve this whistle-blowing problem, and their democracy is flourishing. Many of these countries are those we are often compared to; in Croatia, however, only 5% of people actually expose corruption. Is this a testament, as some argue, to how far we are from democracy ourselves?

So let's go a little to the West - what does the U.S. SEC do in cases like this? How can you protect your whistleblowers? In America, the whistleblower is not only protected from losing his or her job, but they are also given the opportunity for promotion within the same company which they've whistled. Additionally, they earn 10% to 30% of the amount of the damage they have discovered. Sounds encouraging for all of you who witness unethical behaviors, but is money is the only motive for whistling? Or are ethical reasons also considered?

Students in what kind of company do you want to work? If you were to choose between a company that operates ethically, but does not achieve high profits thereby lowering your salary, and a company that is not operating ethically, but your salary is secured and very high - what would you choose? Likely, most of you would say always an ethical company, but would you think twice?

Employees - what would you do if you were to uncover corruption in your own company? Do you wonder if your salary, that is regular and fairly high, is earned ethically and because your company is successful or could something else be behind it? Or someone else?

Employers do you conduct your business ethically? If you do not do business ethically (are you reporting on the minimum wage, the cost justification of private business purposes, anything else ...), would you mind if your employees acted unethically towards you by not working as efficiently as they could?


To be or not to be? To whistle or not to whistle?

Think twice.

20 comments:

  1. Hi, first of all let me tell you this is a really interesting topic considering corruption is seen differently around globe. In UK corruption is a major problem and it's kind of part of our business culture. There are at least 12 different agencies or government departments with partial responsibility for anti-corruption activities, plus more than 40 police forces, but you can't really tell if they're doing their job. Living in a culture like that, I must say I'm not really sure what I would do. You know it's wrong, yet everybody is doing it...It's really hard to decide on what to do :/

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    1. Hi Andy! It is not very motivating to know that country such as the UK, that has developed system of long-term fight against the corruption is not very successful in dealing with that issue. This show us how big problem corruption is, so we all have to make some efforts in order to emphasize the negative aspects of such behavior.

      Thank you for your comment

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  2. Very interesting topic, something we should all think about. It reminded me of a video I watched just the other day. http://www.youtube.com/watch?v=TuET0kpHoyM
    Keep up the good work!

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  3. Dear Jennifer,
    Thank you for sharing this youtube video with us. It was very useful to watch it.
    Hope you'll continue following our blog.

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  4. Hi, I come from Brazil where corruption and bribery are serious obstacles to doing business, especially in business dealings with the government at the local levels- mostly speeding up bureaucratic processes. So many corruption scandals have emerged over the years, involving politicians and bureaucrats taking kickbacks from companies in exchange for awarding public contracts. Living in an environment like that, you know it's wrong, but unfortunately you get used to it. I know it's sad, but at times you just lose enthusiasm trying to fight the system...But it's definitely a good thing that even students around globe are sharing their opinions and country specific situation - hopefully it will make a change! keep up the good work ;)

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    1. Dear Rafael,
      It's really hard to make some changes if the whole society of a country accepts corruption as a part of the business culture. But someone has to start with changing that behaviour...

      Thanks for your comment :)

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  5. Hi, I'm from Poland, but I've been studying and living in London. If it makes you feel better, you're not the only country facing this problem. Apparently index is showing that corruption is getting better in Poland, but we are far from being where we should be. What surprised me was the situation in UK, where although a developed country, situation is very bad, which Andy already mentioned. I guess we should all be brave and step forward, because if we all decide to close our eyes, we will get nowhere.

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    1. Dear Anastazja,
      We definitely agree with you. We should all make some efforts in order to change current situation.
      Thank you for your comment :)

      Delete
  6. Hi, nice blog. It's very interesting to see how are whistleblowers accepted in different countries. Obviously, in most places the situation is not ideal for their actions but hopefully goverments around the world will recognize their importance and the need to protect them.

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    1. Hi Daniel,

      thank you for your comment. Where do you come from? Could you share the experience in your country?
      Thanks :)

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    2. I'm from Belgium. In 2006 the Belgian Privacy Commission issued a recommendation setting out how a whistleblowing system could be established in compliance with the Belgian Data Protection Act.
      These are the most interesting principles in the recommendation:

      Legal grounds - A whistleblowing system will only be justified if: (a) it is based on a legal obligation imposed on the company under Belgian law. An obligation imposed by a foreign law is not a valid ground; or (b) it is in the legitimate interest of the company, unless the interests and rights of the person to whom the reported information relates prevail.
      Information - Employees must be provided with clear information on the scope of application and purpose of the whistleblowing system, both at collective and individual levels. They must be informed of the type of reporting they should provide (which must consist of actual facts rather than mere rumour or conjecture) and on the reporting procedure (to whom, what, where, when, how, etc.). The consequences of the reporting must also be described. Only persons who are part of the organisation can report to, or be reported on, the whistleblowing system.
      No compulsory reporting - The use of the whistleblowing system cannot be made compulsory and must be optional. The whistleblowing system should complement other existing reporting channels and only be used where other reporting methods are not available.

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    3. Hi Daniel,
      Thank you for sharing this interesting example. We believe that educating employees on the scope of application and purpose of whistleblowing system might actually be one of the key factors in battling corruption. The question is how many companies would be interested in providing such education, in a society where the managers of some companies are also corrupt. Also, in certain cases, where life and personal safety of the whistleblowers might be in danger, it is very difficult to expect them to risk that if there is no efficient protection for them and their families. We would also love to hear your opinion on our new topic :))

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  7. This is very important and interesting topic. For everyone who wants to know more about whistleblowers I recommend this page: http://www.whistleblower.org
    It's the web page of GAP(Government Accountability Project). Their mission is to promote corporate and government accountability by protecting whistleblowers, advancing occupational free speech, and empowering citizen activists.

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    1. Dear Marie,

      Thank you for the page that you recommended. This is very interesting topic and it is good to know there is some official page that is dealing with this issue.

      Delete
  8. Hi everyone! I'm from Italy, but now for a short visit to Croatia. As it is obvious from your text, there are many problems in your country for young and perspective people. I have heard about it from my friends here and from other Croatian people of all ages. Unfortunately, as you know it, things are not flourishing in other countries either. Still, as it seems to me, what you still lack is just a pinch of bravery and voice to lift you up. Students all over the world have been very loud lately, which, from my personal experience, is not an easy thing to do at all. Some would say that it is very difficult to change something and that 'rebels' always have some hidden individual goals to achieve. However, I don't agree with this and I fully support all the whistlers of the world if their cause is a valuable and promising one. Speak up and fight for what you believe in. There is still some hope for this world if young people try to direct its course and shape their own futures. Go for it, Croatia!

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    1. Dear Anna,
      Thank you for your comment. We continuously try to think affirmatively, and we keep on reminding ourselves what Gandhi once said: "Be the change you want to see in the world!" Changes start with us :)

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  9. In Australia we have an association for those who have exposed corruption or any form of malpractice, especially if they were then hindered or abused, and for those who are thinking of exposing it or who wish to support those who are doing so.
    It's called Whistleblowers Australia Inc. There are also many laws that protect whistleblowers and their actions. Because of that I think the situation is better here than in most countries around the world.

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    1. Hi, thank you for your comment. This kind of initiative is perfect, but unfortunately, creating associations would not help in a society where corruption can be seen at every step. In order for these associations to function, it is necessary to change the way the society thinks first, and that is the most difficult thing to do.

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  10. Hi! I'm Gorana and I was born in Croatia, but for years I've been living in Spain. As you all know the situation in Spain isn't very good and precisly whistleblowers are the ones who most loudly warn us what is rotten in our country, and where it all went wrong.
    The Spanish Data Protection Agency issued an opinion on whistleblowing procedure and how it is in compliance with our laws. But the opinion is not binding for companies and that's a problem. We need laws that will protect whistleblowers.

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    1. Dear Gorana,
      Thank you for your comment. We are not really sure if we understood correctly what you were saying- if this opinion would be made binding for the companies, would the companies then be obliged to give more protection to the whistleblowers?
      The problem in our society is that the corruption is present at every step, including also the upper level of some companies. Consequently, these companies don't really have an interest in providing more protection for the whistleblowers.

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