OUM3203 Professional Ethics – Analysis of Malaysian Whistleblower Protection Act

The law is a set of rules established by a society to govern behaviour within the society. These rules reflect the collective choices of members of the society regarding any decisions and actions that affect its welfare.

The Malaysian Whistleblower Protection Act 2010 came into force on December 15, 2010. Explain the purpose and scope of the Act. Create a hypothesise on how the moral issue underlying the said Act had developed into law through the respective formation processes within the framework of Malaysian society, with reference to the following stages:

• Individual process
• Group process
• Social process
• Political process

Online Class Participation

Discuss the following topic(s) in the forum and submit proof of your participation in the online discussions:

1. Discuss a balance between economic and social performance when faced with an ethical dilemma. Cite your own example and apply the analytical tools for analysis from the literature that you have studied.
2. Explain why one needs to learn about corporate governance. Why should the management look into having good corporate governance?

Experts Answer on Above Questions on Whistleblower Protection Act

Purpose and scope of the Malaysian whistleblower Protection Act 2010

The main purpose of the whistle protection Act Malaysia is to encourage whistleblowers to report any kind of corruption, abuse of power, misconduct and illegal activities for which they are provided with legal protection against retaliation. The scope of this act is to ensure protection of whistleblowers who disclose improper activities to the agencies, and this protection is ensured by protecting their identity and confidential information, providing them immunity from civil and criminal action, and protecting them against any kind of detrimental action such as harassment, dismissal or discrimination.

Development of the moral issue into the law

Individual process – it is the individuals in the form of employees in organisations that weaknesses any kind of corrupted activities, fraudulent or unethical conduct, and recognise that such activities can conduct harm to the society and the organisation.
Group process – Groups in the form of consumer groups, NGOs and professional bodies discuss the issue and provide for stronger protection for whistleblowers.
Social process – the awareness within the public grows with the help of social media coverage and public debate. Society increasingly demands transparency and accountability.
Political process – the government is responsible for legislation, debate in the parliament and enacting laws to address societal concerns.

Balancing economic and social performance during ethical dilemmas

The example selected for analysis is the installation of pollution control equipment with the objective of reducing environmental harm, but it will contribute towards increasing operating cost.
Economic consideration – the economic considerations are the increased production cost and reduced short term profit.
Social consideration – the social consideration includes the improved environmental performance and better community and health reputation.
Stakeholder analysis – the shareholder would be affected by such a decision in terms of lower short term profit but the employees would benefit in terms of improved workplace environment. There are benefits to the community as well in terms of reduced pollution and customers would be affected in terms of stronger brand trust.

Why to learn about corporate governance

It is important to learn about corporate governance because it helps in promoting ethical business conduct, improving accountability and transparency, protecting stakeholder interest, and supporting long term business sustainability. Managers should consider implementing good corporate governance because it enhances the confidence of investors and all other stakeholders, improves decision making processes within the organisation, contributes towards compliance with laws and regulations, protects organisational reputation and strengthens risk management.

Want Detailed Answers with References?

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