'Whistleblowers under the Spotlight: The cases of Japan and the UK'

Abstract

The contemporary prevalence of complex or opaque business structures, and the limited resources and time of regulatory authorities charged with policing business organisations has increased the importance of whistleblowers. The necessity for whistleblowing also arises from the long-standing information asymmetry that exists between gatekeepers and companies. Whistleblowers can act as a reliable and a robust accountability mechanism in modern corporate governance. The ability of whistleblowers to perform this function stems from their position as ‘insiders’ in companies; this position gives prospective whistleblowers access to privileged information and expertise exceeding that to which outside regulators can hope to obtain. As a result, workers who become whistleblowers can be significantly more effective in detecting potential wrongdoing, disclosing risks and malfeasance in a timely manner and preventing fraudulent activities, thereby helping companies to avoid costly scandals and reputational damage as well as possible legal and regulatory liability or penalties.