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Leg 500

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Abstract Generally, whistle blower is a person who tries to expose wrong doing inside an organization either to the public or to the authorized people. Whistle blowers disclose information regarding any misconduct at their work place which they think may be against public welfare or law. They speak out to expose corruption or to expose any kind of danger to the public or the environment. Whistle-blowing can be internal or external. The whistle blowers are often well educated people holding professional positions and are altruistically motivated. They allow themselves to be guided by their own attitudes and hold utilitarian beliefs. However, in case of being found out, the effects can be vastly debilitating for them including losing the job, isolation and personal life being put in jeopardy. The Dodd Frank law provides the whistle blowers protection from retaliation from the companies. If companies retaliate to whistle blowing the employees reporting wrong doing are protected by the Dodd Frank's anti retaliation statute and liable for double back pay (Miceli, et. al. 1984). Introduction Recently, a case of whistle blowing had come to light in September last year when Khaled Asadi filed a complaint that G.E. Energy (USA) violated the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. He alleged that he had been terminated after making an internal report of a possible securities law violation. Asadi had accepted GE energy's offer in 2006 to be its s its Iraq Country Executive and relocated to Amman, Jordan. While serving in this position, Asadi came to know that GE Energy had hired a woman closely associated with a senior Iraqi official to win his favor for negotiating a lucrative joint venture agreement (Miethe, 1999). Asadi reported the issue to his supervisor and to the GE Energy ombudsperson for the region, being concerned that it was a violation of the Foreign Corrupt Practices Act. Shortly, after Asadi had made these reports that he received a very negative performance review. He was also pressured to step down from his role as Iraq Country Executive and accept a reduced role in the region with highly reduced responsibility. Asadi did not comply and a year later than having made the reports he was fired (Near, et. al. 1985)
Literature Review Asadi filed a complaint alleging that he had been fired in violation of the Dodd-Frank’s whistleblower-protection provision after having made internal reports of the possible FCPA violation. GE Energy claimed that Asadi was not a whistle blower under the whistle blower protection provision and that the provision did not apply extra territorially either. The district court also dismissed Asadi's claim on the basis that his extra territorial whistle blowing activity did not come under the protection. On the basis of this conclusion, it also declined to decide if Asadi was a whistle blower. In the sole decision on point from a federal appellate court, the Fifth Circuit held in Asadi v. G.E. Energy (USA), L.L.C. that Dodd-Frank’s protections for whistleblowers do not encompass an employee who reports information concerning a violation internally within the firm but not to the SEC (Mesmer-Magnus, et. al. 2005). The fifth Circuit appellate court became the first Federal Appellate Court to decide that internal reporting is not covered under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. In its decision, the Fifth Circuit deviated from several previous district court opinions holding that internal reporting alone qualifies as protected activity. Asadi was certainly justified in reporting the corrupt actions. However, he had to face negative action due to it. It is because the act was illegal if the company was trying to win the favor of a top Iraqi official illegally and was using a woman to influence his decision. Moreover, since he was fired it also proves that Asadi had uncovered the wrong doing. The Sarbanes Oxley Act of 2002 protects the employees reporting any kind of wrong doing internally. Yet, Dodd Frank provides employees a higher level of protection. In case an individual alleges retaliation on the company's part, it allows him to file a claim in the US district court. While SOX only provides for back pay, Dodd Frank provides for two times back pay. It is why employees have significant incentives if they report under Dodd Frank rather than under the Sarbanes Oxley.
Since the promulgation of Dodd Frank, five district courts have ruled that employees reporting wrong doing to the upper management but not the US Securities and Exchange Commission are whistle blowers and are also entitled to protection under the Dodd Frank's anti retaliation provisions. However, the ruling of the Fifth Circuit Court of appeals in the current case was a significant deviation from the previous cases. It ruled the opposite stating that the employee was not a whistle blower as he did not report or “provide information relating to a violation of the securities laws to the SEC.” (Jubb, 1999).

Conclusion Asadi's case was clearly that of whistle blowing as per my personal opinion as he was exposing a wrong doing he had come to learn of. However, what happened was quite unexpected since the employer retaliated against him instead of investigating the wrong doing. Whether law considers him a whistle blower or not, it is certain that his act included exposing a significant wrong doing on the part of the company's officials. However, since the court decided that he was not a whistle blower, he would be unable to obtain protection under the Dodd Frank laws which protect whistle blowers. It may signify a victory for the employer, GE Energy. However, whether it encourages or discourages other whistle blowers is unknown.
Jubb, P. B. (1999). Whistleblowing: A restrictive definition and interpretation.Journal of Business Ethics, 21(1), 77-94.
Mesmer-Magnus, J. R., & Viswesvaran, C. (2005). Whistleblowing in organizations: An examination of correlates of whistleblowing intentions, actions, and retaliation. Journal of Business Ethics, 62(3), 277-297.
Miceli, M. P., & Near, J. P. (1984). The relationships among beliefs, organizational position, and whistle-blowing status: A discriminant analysis.Academy of Management Journal, 27(4), 687-705.
Miethe, T. D. (1999). Whistleblowing at work: Tough choices in exposing fraud, waste, and abuse on the job. Boulder, CO: Westview Press.
Near, J. P., & Miceli, M. P. (1985). Organizational dissidence: The case of whistle-blowing. Journal of Business Ethics, 4(1), 1-16.…...

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