Whistleblowing: Before you Signal, Be Prepared for the Fallout

Mergis Group's Profile

Whistleblowers: They’re cool, they’re heroic, and their characters look great in the movies. However, before you’re charmed by the allure of pointing a finger and crying foul, it’s important to consider the consequences. And there can be some serious ones.

In fact, both experts and recent history tell us that whistleblowing can be a career killer. Case after case proves it. Matthew Lee, a former Ernst & Young principal, complained about iffy practices and was fired just a few weeks later. Bradley Birkenfeld, a midlevel executive with UBS, went to jail after he told authorities his company had been shielding client funds from the government. He was found guilty of fraud and sentenced to four years in prison. Birkenfeld’s punishment is a situation known as the “chilling effect” or “libel chill,” where behavior is suppressed by fear of reprimand and punishment.

However, the government is recognizing that people brave enough to point out poor practices need a haven. In 2009, the Financial Industry Regulatory Authority (FINRA) announced the creation of “Office of the Whistleblower,” an initiative designed to give people with significant information access to senior staff who can ensure their tips are properly evaluated.

If something is going on and you know you need to speak up, have a backup plan in place before you take the leap. In case your company isn’t as understanding as you would hope, try to secure a position in another company. This will give you a solid safety net in case you are actually let go. Be aware of resources such as the Government Accountability Project, a non-profit that helps whistleblowers with legal counsel and even getting law enforcement involved.

Remember that most whistleblowers don’t end up in the movies or founding their own successful companies after the backlash. However, if you’re sure that all isn’t well and problems need to be examined, there are ways to survive and keep your career alive.