News and Events for Attorneys and Executives

Whistle-Blowers Spur Companies to Change Their Ways

WhistleblowingA new University of Iowa study demonstrates for the first time that financial shenanigans at companies decrease markedly in the years after truth tellers come forward with information about wrongdoing inside their operations, according to a report in The New York Times.

While government whistle-blower programs reward some individuals providing tips about corporate fraud, the costs for those people can be high, due to retaliation from their employers and their industry, writes Gretchen Morgenson. But companies subjected to whistle-blower investigations had less financial wrongdoing after being reported, the Iowa study found.

An analysis of the study found that the decrease lasted for at least two years, the period for which data had been collected for all the companies.

Read the NYT article.