Businesses have been able to get away with a lot for the longest time. There were a lot of unethical practices being done by quite a few businesses that have been ignored until recently. The economic downturn has also resulted in a lot of revelations of businesses that have done a lot of underhanded acts. As a result of these findings, people have lost a lot of trust in these corporations. As a result, there has been a new initiative brought into the industry. This is called the Dodd-Frank Act. This allows people to report any type of violations that they see.
When people report certain violations, they will be protected from any forms of retaliation within the company. For one thing, there are a lot of cases when people have decided to keep quiet when they have caught an unethical act due to the fear of job loss. Thanks to the new Dodd-Frank Act, people may be compensated for each case that they report to the program. The reported business will be investigated. If there is in fact any type of violation found during the investigation, the one who has reported will receive a percentage of the fine.
For the historic legislation, there has been a law firm that has been set up for the purpose of investigating any business violations and compensating the whistleblower for bringing it to the attention of the law firm. This is not meant to merely punish and retaliate against people who break the rules. This is to get businesses to act in ways that are ethical and fair for their clients. Clients need to know that they can trust their business to an institution. The SEC Whistleblower Program is put in place in order to discourage anyone that may have the thought of cheating their clients.
Institutions do have a long way to go in order to regain the trust of many people. However, they could achieve that by staying on ethical behavior. When people act ethically, it will pay off for them. They will gain more clients. They will also be able to avoid penalties that often come with underhanded tactics that cheat the people they do business with.
Learn more about SEC whistleblower attorneys