What is Enron

Corporate scandals have cost organizations and economies billions of dollars in direct and indirect costs. Whistleblowing has often been underutilized as a disclosure mechanism for rooting out and managing such illegal and unethical business practices due to the high personal costs on the whistleblower. However, once such issues are managed, whistleblowing has the potential to be a powerful tool in the management of corporate wrongdoing. This article examines the role of whistleblowing in the management of corporate wrongdoing and presents a managerial framework to maximize the effectiveness of whistleblowing. The usefulness of the managerial framework is assessed, and recommendations are made to enhance the effectiveness of whistleblowing.