The Role of Whistleblowers in Corporate Accountability

Whistleblowers often serve as the frontline defense against corporate misconduct. They shine a light on hidden issues ranging from financial fraud to sexual assault, contributing significantly to ethical business practices and transparency. Understanding the complexities and risks involved in whistleblowing can empower potential whistleblowers to act responsibly and effectively.

Legal Safeguards for Whistleblowers

Whistleblowers are protected under various statutes that provide a safety net, shielding them from retaliation. These laws vary by region and may pertain to both federal and state levels. Recognizing these rights is a first step for anyone considering reporting wrongdoing. Despite these protections, risks of personal and professional backlash remain, deciding to come forward a profound one.

Practical Steps for Whistleblowers

Documenting evidence is a fundamental step in building a credible whistleblower case. Personal devices might be necessary for recording critical information, especially when company equipment is monitored or restricted. However, legality varies by state; some allow recordings without all parties’ consent, while others require it. This makes consulting legal advice essential.

Reporting Misconduct

Deciding whom to report to involves careful consideration. Internal reports, such as to HR or a company lawyer, may initially seem logical. However, if these bodies are too close to management or the issues at hand, external options like governmental bodies or media might be explored. The choice impacts the legal protections available under whistleblower laws, typically favoring those who report internally first.

Risks of Anonymity and Legal Compliance

While anonymity might seem a safe choice, it often leads to intense scrutiny as companies seek to identify the source of the report. Moreover, gathering evidence must comply with legal standards to avoid personal legal repercussions, such as charges of unauthorized access.

Emotional and Financial Impact

The decision to blow the whistle can profoundly affect one’s mental health and financial stability. The stress involved is considerable, often requiring professional psychological support. Financially, the loss of employment and the costs of legal representation can be daunting. Although legal avenues might eventually offer financial redress, the interim period can be financially stressful.

Common Pitfalls for Whistleblowers

Whistleblowers might face challenges such as failing to adequately document evidence or prematurely disclosing information. Legal guidance is critical to navigating these challenges wisely and maintaining one’s rights and responsibilities. Emotional responses can cloud judgment, making strategic, informed decisions crucial.


Whistleblowers play an essential role in upholding justice and corporate integrity. They face significant challenges, but with the right approach and support, their actions can lead to meaningful change. Consulting with legal and psychological professionals can help manage the burdens and maximize the impact of their courageous actions.

Video Transcript

Understanding Whistleblowing and Legal Protections

As an attorney, I have been contacted by people who have observed serious illegal conduct. Sometimes we call these people whistleblowers when they report that conduct. This conduct includes sexual assault, misuse of financial resources, fraud, fraud on the government, and other serious crimes and illegal conduct. If you are a whistleblower or thinking about becoming one, You are probably thinking about all of the risks associated with coming forward.

Legal Protections for Whistleblowers

The good news is many whistleblower statutes can protect you. So it is worth identifying which whistleblower statutes are available in your area, whether it is the federal government or state government that gives you some rights. But let’s face it, even if you have legal rights, it doesn’t mean somebody won’t trample those rights, attack you in the media, or on social media defame your name, or ruin your reputation. And so, even though you have legal rights, there are some other practical considerations.

Practical Considerations for Whistleblowers

Documenting Evidence
First, it is important to document everything. Now, sometimes you can’t do that on a business device like a business laptop or business phone. So you will want to use a personal device. Maybe it is a personal recording device. But if you are going to record conversations without letting others in the conversation know, double-check your state laws on that.

Many states, like Minnesota, allow you to record your conversations, even though the others don’t know that you are recording. However, in other states, all parties to a conversation have to be aware of the recording. So, that is an area where you can contact an attorney aware in your state, or you can look online and see what are the surreptitious recording laws in your state.

Reporting Channels and Their Implications
When you decide to report illegal conduct, you have to decide who are you going to report it to. Do you report it to management in your company? Maybe an HR director. Perhaps you decide to report it to some influential shareholder that you know, or the board of directors, or the attorney representing the company, or maybe you decide to go outside the company and go to the government or the media.

These are tough decisions. One thing to keep in mind is if you don’t report it within the company, often you are not protected by whistleblower statutes. The whistleblower statutes generally provide you protection from retaliation from the company after you have reported illegal activity within the company. But if you go report that to the media, you may not enjoy the benefits of the protection provided by the whistleblower statute. Now you may be able to report it to the government, and that is a question for an attorney who takes the time to understand the circumstances of your issue.

You might consider reporting this to HR or the attorney representing the company, but keep in mind, that HR in your company and the attorney both represent the company, and they may have a fairly close relationship with management. If management is the problem, if this is some sort of sexual misconduct or some other sort of action that HR or the attorney might be turning a blind eye to, maybe it is not prudent to reach out to the attorney or HR.

This usually involves a very careful analysis by both the person intending to be the whistleblower and that person’s trusted advisors, which may include an attorney knowledgeable in whistleblower law.

Anonymity and Legal Risks

One practical option is to consider whether you can report this anonymously. That can be a valuable way to protect you from getting retaliation. However, keep in mind if you do that, whoever the person is who is getting reported for misconduct is likely to go to extensive research to figure out who reported this. They are not going to be happy. And if you report anonymously, you may not be protected by the whistleblower statute.

As you consider gathering evidence, keep in mind that you should do it legally. Hacking into a computer or unauthorized computer access could expose you to criminal charges. And a lawsuit from the company against you for the wrongful act of accessing data that you weren’t supposed to access or taking something off the property. So that is an important question again for you to discuss with an attorney.

Emotional and Financial Considerations

If you are considering reporting misconduct and being a whistleblower, keep in mind that it can take a significant toll on a person mentally and emotionally. You may want to meet with a lawyer, counselor, psychiatrist, or psychologist, somebody who is trained in helping whistleblowers deal with the extraordinary psychological stress associated with blowing the whistle.

Not only is it what you are going through at the time, but typically for years afterward, you will be dealing with the fallout. You might be called as a witness in some sort of investigation or legal action. You might be dealing with retaliation from those who didn’t appreciate that you reported them. You might deal with retaliation from others in your community who don’t have all the facts and come to improper conclusions, that somehow you did something wrong.

Practically speaking, being a whistleblower can have a very significant hit on your short-term finances. You may lose a job. You might have to hire an attorney. It can be challenging. And so thinking through just the practical consequences of that are important considerations. It may be true that you can sue and recover some of your losses as a whistleblower.

You might even get a lot more than just covering your losses under the whistleblower statute, but that often is years down the road. In the meantime, It can be a significant financial strain to not have an income, have to pay for an attorney, and be dealing with all of the issues you are facing as a witness to illegal conduct.

Common Mistakes by Whistleblowers

So what are common mistakes whistleblowers make?

  • Failing to document evidence.
  • Failing to report the information inside the company, is often essential to preserve your rights as a whistleblower.
  • Publicly disclosing information before the appropriate time.
  • Not consulting with an attorney who can help you understand your legal rights and responsibilities.
  • Gathering evidence illegally, like taking information or data that you are not authorized to take.
  • Acting on emotion rather than strategically, intellectually, and professionally.
  • Underestimating the emotional toll that this can take and the time that it can take.

Often, it can take years, and it feels like you are brought right back into the crisis and dealing with the trauma again every time you are subject to a deposition, an inquiry from an investigator, or having to be a witness in court.

Legal Responsibilities and Potential Liabilities

Finally, you might consider what your legal responsibility is and whether you might have liability here. Often, people who are aware of a situation and don’t know what to do do something to mitigate the harm stop the problem, or timely report it, might have some liability. That is an important question for you to discuss with your attorney.

Being a whistleblower is often a defender of many victims. I believe you are a hero. You are standing up for what is right. You are exposing what is wrong. But when you do that, there are significant consequences. Maybe not legal consequences, but many practical consequences.

I have great esteem and appreciation for those who are willing to be whistleblowers. But I also encourage you to consult with experts who understand what it is like, can evaluate your circumstances, and can do their best to set you up for success and not allow you to be a traumatized victim from the whole experience of being a whistleblower.

I am Aaron Hall. I am an attorney. I represent business owners, companies, whistleblowers, and executives. I deal with these sorts of issues all the time on both sides. I do these free educational videos to help educate the public so you can understand what your rights are and identify the issues to discuss with your attorney.