Whistleblowing

Whistle-blowing payments over the years haven’t amounted to large sums of money being paid to employees willing to provide information to the SEC. However, under the new Investor Protection Act, a fund established to pay employees willing to tell the SEC about corporate misdeeds has already been funded in the amount of $475 million. Corporate concerns are that employees will go for the dollars first – before following established corporate procedures and heading to the internal audit departments. However, the concerns of Corporate America may be unfounded as according to this study, most employees follow internal procedures first before taking their information outside the company.Will the potential lure of big payouts change these results?