lessons learned from a university whistleblower€¦ · one final piece of the puzzle allegations...

ABJoyLessonsLearned2014

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AMY BLOCK JOY, Ph.D.Faculty Emeritus & Author | University of California Davis

Lessons Learned from a University Whistleblower

A Case Study on Retaliation


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DisclaimersSome things to keep in mind during this presentation

1. Information summarized in this presentation include published research, documents, articles, interviews, and recollections.

2. The presenter would like to acknowledge the many professionals who worked this case, including: university investigators, internal auditors, and federal agents.

3.Viewpoints expressed in this presentation do not necessarily represent the official position of the University of California.


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Outline

I. Whistleblower Case Study: Reporting Wrongdoing in the Workplace – A Whistleblower’s Perspective on What Happens

II. Retaliation Case Study - Consequences of Blowing the Whistle

III.Prevention Strategies - How to Protect Whistleblowers and Reporters


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Whistleblower Case Study

Reporting Wrongdoing in the Workplace

A Whistleblower’s Perspective on What Happens

(Part I)

Source: A.B. Joy, Whistleblower, Bay Tree Publishing, CA, 2010.


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BackgroundUniversity of California

• Faculty Member

• Director of USDA Program

• 33 Year Employee


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Mistake!Error on Spreadsheet

• $60K Budget

• Increased by $150K

• Hand-Written Note


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ALARM!Internal Alarm Leads to Action

• Response About “Mistake”

• Files Locked

• No Key


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Red Flags!Questionable Purchase Order

• Approval (Incorrect Authorization)

• Price (Expensive)

• Description (Vague)

• Separation of Duties (Missing)

• Vendor Instructions (“Pickup”)


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Moral DilemmaI need help to determine my responsibility:

• To the federal government?

• To the university?

• To myself?


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Internal Reporting ConcernsHow to Get Through a Brick Wall

• Supervisor’s response

• “No Big Deal” comments

• Threats/Intimidation

• Moral distress leads to action


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One Final Piece of the Puzzle Allegations of Fictitious TravelClaims of $20,000 or More!

• Travel misuse observed by others

• Travel records hard to locate

• Authorization process

• Deception?

• Collusion?


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WhistleblowerReportImproper Activities Report

Protection from Retaliation Report


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Whistleblower’s Credo

In theory, anyone who speaks out in the name of the public good within an organization is a whistleblower.

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Multiple InvestigationsCampus Authorities and Federal Agents

Work Together after USDA notified

• Internal Auditors

• Police

• Campus Investigators

• Office of Research

• OIG Special Agents


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Retaliation!Lesson #1: Office of WhistleblowerRansacked

• Who protects the evidence?

• Who protects the privacy of the

whistleblower?


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Retaliation!Lesson #2: Alleged Fraudster Blows the Whistle!

• Accused files whistleblower allegations

• Whistleblower is served at home

• Whistleblower is silenced

• Allegations of misuse are investigated

• Whistleblower is cleared

Source: A.B. Joy, Whistleblower, Bay Tree Publishing, CA, 2010.


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Prompt ActionFraud Stopped!

• Evidence collection and review

• Warrant served

• Equipment seized

• Indictment by DOJ

• Joint media release


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Conclusion: $2.3 Million FraudFunds Returned to Agency Following

Four Years of Investigations

• Embezzlement

• Travel Fraud

• Misappropriation

• Time Reporting


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Disclaimer: Identifying information for some places and employees have been changed.

Retaliation Case Study

Consequences of Blowing the Whistle

(Part II)


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Retaliation

Retribution exacted by co-workers or managers against anemployee who has reportedmisconduct.

Source: Ethics Resource Center Summary of the July 2012 ERC Fellows Meeting: “Retaliation in the Workplace—Why it Matters and What Companies Can Do About it.”

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Trends in Retaliation

• Over 21% of those who reported misconduct in 2013 perceived retaliation for doing so

• This trend calculates to 6.2 million workers

• Since 22% reported retaliation in 2011, this continued high retaliation rate is a cause for concern

1. Ethics Resource Center: Retaliation: “When Whistleblowers Become Victims. A supplementary report of the 2011 National Business Ethic Survey,” 2012.

2. National Business Ethics Survey of the U.S. Workforce, Ethics Resource Center, 2014.


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Observation: Reporting Wrongdoing of Higher Ups May Lead to Retaliation

In theory … anyone who speaks out in the name of public good within the organization is a whistleblower … Rarely do employees get fired for reporting the misbehavior of subordinates … She [/he] becomes a whistleblower when she [/he] experiences retaliation … If there is no retaliation she [/he] is just a responsible employee doing her [/his] job to protect the company’s interest …

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”Source: C.F. Alford, Whistleblower: Broken Lives and Organizational Power, Cornell University Press, NY 2001.


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Ethics ResourceCenter 2014 Report

The high rate .. is worrisome because retaliation reduces worker’s willingness to report misconduct. When asked why they kept quiet … 34% … said they feared payback from senior leadership… 30% worried about retaliation from a supervisor and 24% from said their co-workers might react against them.

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”Source: National Business Ethics Survey in the U.S. Workforce, Ethics Resource Center, 2014


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Research on Typesof Retaliation

• Excluded from decisions and work activities (64%)

• Given cold shoulder (62%)

• Verbally abused by supervisor (62%)

• Verbally abused by co-workers (51%)

• Harassment (31%)

• Demoted (32%)

• Hours or pay cuts (46%)

• Almost lost job (56%)

Source: Ethics Resource Center: Retaliation: “When Whistleblowers Become Victims. A Supplement of the 2011 National Business Survey,” 2012.


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Researchon Retaliation31% experienced physical harm to person or property

Source: Ethics Resource Center: Retaliation: “When Whistleblowers Become Victims. A supplemental report of the National BusinessEthics Survey,” 2012 .


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RetaliationCase Study

• Documenting retaliatory activities

• Filing complaint

• Investigation

• Investigative findings

Source: A. B. Joy, Retaliation, CreateSpace Publishing Platform, SC 2013


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DocumentingRetaliationEvidence that can be used to prove retaliation included:

• Petition circulated and signed

• Car vandalized

• Pay cut threat on email

• Intimidating emails and letters

• Email threats

• Meeting threats

Source: A.B. Joy, Retaliation, CreateSpace Publishing Platform, SC 2013.


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Timing of Retaliation Newspaper and Exposure of Criminal Case Sparks Retaliation

• Whistleblower report

• Warrant

• Auditors arriving at workplace

• Computers taken

• Indictment

• Release of fraud findings

Source: A.B. Joy, Retaliation, CreateSpace Publishing Platform, SC 2013.


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RetaliationSubstantiated!University’s Effective Response

• Protection from retaliation

• Administrative changes

• Future career

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Source: A. B. Joy, Retaliation, CreateSpace Publishing Platform, SC 2013.


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Prevention Strategies

How to Protect Whistleblowers and Reporters

(Part III)


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Retaliation is a Major ThreatRetaliation can increase costs and impair your ethics culture

• Retaliation is common

• Retaliation is a second form of misconduct

• Retaliation threatens the ethical culture


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Organizational ChallengesStrategies to Protect Whistleblowers and Reporters of Wrongdoing

Steps to take BEFORE

• Communicate, train, educate

Steps to take DURING

• Investigate promptly

• Communicate with “reporter”

Steps to take AFTER

• Review/update policy as needed

• Communicate findings with “reporter”

• Take appropriate action


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ResourcesEducate and Train the Workforce

• Anti-Retaliation Policy

• What is Retaliation?

• Complaint Procedures

• Standards of Conduct

• Roles and Responsibilities

• Official in Charge

• Contact Persons

• What about those who observe and don’t report?


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Post AllInformation onA Single SiteDisseminate widely and frequently

• Policy on reporting

• Policy on protection

• Complaint process

• Contact person(s)

• Definitions and resources

• Educational materials


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Retaliation HotlineAnonymous reporting

• Educate workforce on Hotline

• Define misuse

• Define fraud, embezzlement

• Define wrongdoing

• Clear instructions and procedures


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Enforcement• Strongly worded standards: Zero

tolerance policy!

• Be credible: Violators will be disciplined

• Demonstrate commitment to enforcement: Post results/consequences on valid cases


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PreventingRetaliationIs good public policy

Source: A.B. Joy, “The high cost of whistleblower retaliation: Why institutions should prevent it”, Compliance & Ethics Professional 10 (4): 37-40 July/August 2013.


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Acknowledgements: Power Point Presentation by Computer Courage, Berkeley, CA. www.computercourage.com. Template inspired by “Clean White Keynote Presentation” by graphicriver

Thank [email protected]

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