Businesses Don't Like Plan That Would Reward Whistleblowers

The Securities and Exchange Commission is considering a proposal that would pay out rewards to employees who turn in their companies for wrongdoing, and businesses aren’t so happy about having bounties placed on their heads.

A Washington Post story says businesses say whistleblowers should share their accusations with the businesses first in order to let them address them. And the Financial Services Roundtable and the American Bankers Association are offering to screen the complaints in order to lighten the SEC’s burden, writing in a December letter to the SEC:

“Companies are far better equipped to assess complaints in the context of their particular business and to ‘separate the wheat from the chaff.’ “

Do you think there’s merit to the business groups’ concerns? If you were a whistleblower, would a reward make you more likely to step forward?

Businesses criticize whistleblower reward plan [The Washington Post]
(Thanks, Katie!)