Whistleblowing can negatively affect the atmosphere in a workplace.
The Whistleblower Protection Act offers confidentiality and protection from retaliation by federal employers, according to the Office of Investigations website. States have their own set of laws designed to protect employees who report unlawful or unethical behavior by their employers. Such rules offer protection for workers who report sexual harassment, as well as discrimination due to race, gender or sexual orientation. However, as Illinois Institute of Technology professor Michael Davis points out, the effects of whistleblowing can be destructive, for both employer and employee.
Firing
Although firing an employee in outright retaliation for reporting wrongdoing by the management of a company is illegal in the United States, it often occurs. However, it is hard to prove because businesses usually justify their actions by saying that they dismissed the employee because of her poor performance. The corporation may also successfully defend itself by saying that upon hiring, she signed paperwork stating that she understood that employment was at will, and she was subject to termination at any time, for any reason. Thus a real consequence the whistleblower must face is a loss of income.
Reassignment
Another result of whistleblowing is that management may assign the informant to radically different duties from the ones the organization originally hired her to fulfill. For instance, if the complainant was an accountant who reported her company for adjusting its financial records to cover misappropriation or mismanagement of monies, management may reassign her to another position far removed from accounting to relieve itself of any chances of her being privy to the company's financial practices ever again.
Harsher Treatment
Consequences for a whistleblower can also take the form of harsh treatment at work. The organization will begin to use tactics that they hope will cause the employee, whom the company now regards as a traitor, to resign. According to the APESMA website, this can include micromanagement, constant criticism over minor mistakes or assigning the worker to tasks that are difficult, if not impossible.
Ostracism
A whistleblower's chances of employment elsewhere can suffer as a result of her involvement in the reporting of the company's wrongdoing. When she interviews with another business, that potential employer will contact her prior manager, who is likely to advise against hiring her because she is not a "team player." As Davis suggests, other companies are likely to shun such an individual because no organization wants another's drama.
Organizational Consequences
Whistleblowing causes repercussions for the company that is accused of wrongdoing. For example, as Davis points out, management will have to conduct time-consuming damage control meetings to determine confront the negative publicity that is certain to ensue.
Also, the business must face economic consequences. For instance, if the company is an automotive corporation that experienced whistleblowing for approving parts management knew were faulty, car buyers are likely to take their business to an automaker they feel will be more honest and responsible in its production techniques.
