Corporate whistleblowing can play a crucial role in protecting shareholder interests. When an employee of an organization makes public, any illegal or illegitimate act of the organization, undesirable public scrutiny, legal action and regulatory act may result. Regardless of an enormous increase in whistleblowing activities in organizations recently, little research has been done about the types of organizational wrongdoings, the whistleblowing process, what distinguishes whistleblowing from organizational loyalty, and what are the various laws to protect whistleblowers from organizational retaliation. This paper first highlights the relevant literatures regarding the types of whistleblowing and the whistleblowing process. Second, it discusses about how organizational loyalty differs from whistleblowing. Next, this paper discusses about the reasons and the motivations of the whistleblowers. Finally, it emphasizes the consequences of whistleblowing and what are some of the various laws to protect the whistleblowers.

The number of whistleblowing activities in the US and elsewhere has increased evidently in the recent years. Apart from the Cynthia Cooper and Sherron Watkins (whistleblowers at WorldCom and Enron, respectively), there has been an increase in the exposure of current potential wrongdoings to supervisory bodies and enforcement agencies across the world (Bowen et al., 2010). The term whistleblowing originated from the practice of English policemen who blew their whistle when they observed the happening of some crime. The blowing of whistle alerted other law enforcement officers and the general public that a crime was being committed. A standard definition of whistleblowing over the years has been adopted by various authors doing research in this field. According to this definition whistleblowing is, "The disclosure by organization members (former or current) of illegal, immoral and illegitimate practices under the control of their employers to persons and organizations that may be able to effect action" (Near and Miceli, 1985).

For an act of whistleblowing to happen, it must involve at least four elements, (1) the person who is blowing the whistle or the whistleblower, (2) the complaint or the wrongdoing that is being reported, (3) the organization in general or an individual or a group of people working in the organization who is/are committing the wrongdoing and (4) the party who is receiving the complaint of wrongdoing from the whistleblower (Near and Miceli, 1985 and 1996; Dworkin and Near, 1997; and Rocha and Kliener, 2005). The act of whistleblowing is not meant to cause harm to the organization, rather, it is to facilitate the exposure of committing questionable acts by a party that may harm the interests of the organization and such an act is also against the values of the organization (Miceli and Near, 1988).

Whistleblower, as a word is used to indicate a person who is an employee or has been an employee of an organization who reports the happenings of some wrongdoings within that organization from an individual who is an outsider or has never been employed in that organization (Near and Miceli, 1985; and Rocha and Kliener, 2005). Whistleblowers may be internal or external depending upon the party to whom the complaint is made. If the complaint of wrongdoing is made by the whistleblower to persons within the organization such as the top management, the complainant is called an internal whistleblower. If, on the other hand, the complaint is made to an external body outside an organization such as the government or any law enforcement agency, the complainant is called an external whistleblower (Near and Miceli, 1996; Bouville, 2007; and Ponnu et al., 2008).

Corporate Governance Journal, Corporate Whistleblowing, Organizational Retaliation, Organizational Loyalty, Enforcement Agencies, Theoretical Frameworks, Mission Statements, Artificial Smokescreens, Organizational Resources, Financial Markets, Financial Securities, Public Sector Organizations, Organizational Culture.