Sarbanes-Oxley doesn't automatically make life easier for corporate whistlebloewrs, says Prentice.Voice of America
"Even After Sarbanes-Oxley Act, U.S. Whistleblowers Face Dilemma"
Oct. 3, 2011

In 2002, when corporate America was in turmoil-- faced with scandals at companies like Enron-- the U.S. government responded by passing the Sarbanes-Oxley Act. The legislation attempted to encourage the practice of "whistleblowing," by instituting harsh penalties against company officials who retaliate against whistleblowers.

Greg Flakus at Voice of America considered the moral dilemma modern whistleblowers still face despite the passage of the act. Flakus spoke to Robert Prentice, chair of the Department of Business, Government and Society, about the ongoing issue.

Although Sarbanes-Oxley offers protection to so-called whistleblowers, Robert Prentice, a business professor at the University of Texas, says the law is written to parse legitimate complaints and frivolous ones.

"The Sarbanes-Oxley law tried really hard to encourage whistleblowers, to reward whistleblowers, and to protect them from retaliation, but, at the same time, [discourage] cranks that are making complaints that are baseless," he says.

It's up to the companies, he says, to have a strong ethics codes that are taken seriously by employees and consistently enforced by corporate leaders.

And even then, Prentice says, whistleblowers inevitably must deal with conflicting emotions of wanting to be a loyal employee and an ethical team player.