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

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.