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A fresh look at whistleblower rewards

Working paper: In recent years we have seen a rapid increase in legislation governing, protecting, and rewarding whistleblowers. More recently, EU enacted a directive protecting whistleblowers, the US has gone one step further long ago. In this paper. SITE researchers review the evidence for the effectiveness of US whistleblower reward programs and consider some recent novelties.

A fresh look at whistleblower rewards

By Theo Nyreröd & Giancarlo Spagnolo

Abstract

Recent years have seen a rapid increase in legislation governing, protecting, and rewarding whistleblowers. Whereas the EU recently enacted a Directive protecting whistleblowers, the US has gone one step further long ago, not only protecting them but also offering substantial monetary rewards for their information. In this paper. we review the evidence for the effectiveness of US whistleblower reward programs and consider some recent novelties. We also consider objections against these programs and local factors in the US that likely contribute to their success. Finally, we voice some concerns over the EU Directive´s ability to achieve its policy objective of enhancing enforcement of Union law.

Keywords: whistleblowers, whistleblower rewards, corporate wrongdoing.

Disclaimer: Opinions expressed in policy briefs, working papers and other publications are those of the authors; they do not necessarily reflect those of SITE, the FREE Network and its research institutes.

SITE Crime Politics Publication

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