Minimize The Risk Of External Whistleblower Activity

External whistleblower activity can be very costly in the auto industry.

As the industry continues to develop, prevention of whistleblower claims will only grow in importance. It's an issue that can impact every company within the industry, both foreign and domestic. Retaining employees is one method of minimizing the risk of whistleblowing. Compliance can also be an effective method.

The SEC whistleblower program has resulted in numerous Foreign Corrupt Practices Act (FCPA) penalties and announced settlements. In addition, with studies showing that most whistleblowers are motivated by reasons other than money (i.e., whistleblowing often occurs because employees are disgruntled or terminated, or because an employee believes internal reporting was not taken seriously), even companies that are not publicly traded should be concerned about whistleblower activity.