Financial Reporting and Ethics - The Institute of Chartered ...

ETHICAL THREATS AND SAFEGUARDSimminent presence of an unfamiliar face or visitor who also may be out forsome mischief. The agent may be a member of the public who is alerting hisor her neighbours on the suspicious movement or presence of an uninvitedguest, who may be intent on doing something funny. If the ‘whistle’ is blownby, say, a security staff member of an organisation, the action is in the natureof an informal and desperate report made to prevent or arrest a bad situationwhich may occasion the loss of life and or property or gravely misdirectjudgment.Suppose a thief snatches a purse from an elderly man, a public spirited passerbywho witnessed the incident called a nearby police station on his mobilephone. That act is whistle – blowing and is commendable.Section 35 of the Civil Service Reforms Act No. 43 of 1988 created the AuditAlarm Committee, headed by the Auditor – General for the Federation to raisealertness and sanction any public officer that is suspected of committing anact of financial impropriety. The audit alarm is “whistle – blowing.”One may consider the failure to attend to the crying needs of hapless others asbeing morally inadequate. However, the law of negligence says that theobligation to assist another person rests upon the relationship between thetwo parties. It is obligatory, morally and legally, to fulfill promises andcontracts. Thus, children cannot be abandoned by their parents. An injuredperson cannot be left in a car while one is relaxing in a hotel.The obligation to ‘blow- whistle’ for strangers in companies and the world ofbusinesses is not easy to achieve. The choice is not imminent; it is predominantlya personal decision. No one likes a whistle – blower. Consequently, a potentialwhistle – blower in paid employment especially, will worry for himself andhis family if his virtuous endeavour brings about negative effect. Some whistleblowingendeavours evoke or give rise to ethical dilemma.10.6.1 Justifying Whistle - BlowingWhistle – blowing is justified when the following conditions are met:(a)(b)(c)(d)(e)The behaviors – corporate or individual – being reported, suchas effluent discharge, mismanagement of a company, will likelyresult in serious health hazard;The usual and perhaps official channels which have been triedare not successful;All internal resources have been utilized but nothing constructivehas come out;The whistle – blowing report should likely bring about the neededchanges; andOne should have a moral duty to prevent the harm.201