Abstract

Whistle‐blowing is the disclosure of organizational wrongdoing by internal or external parties either within the organization or publicly to outsiders who may be able to effect a positive change in action or activities. Organizations have been encouraged, especially since the passage in 2002 of the Sarbanes–Oxley Act, to establish a culture in which whistle‐blowing is seen as a positive mechanism to correct misconduct rather than a negative attack.This article addresses whistle‐blowing in relationship fraud and governmental “bounties” paid to persons who are willing to provide knowledge of organizational transgressions. The fraud could occur through a variety of mechanisms but, regardless of the fraud's cause, the long‐run result will be harmful to the organization, its employees, its customers, and the society in which the organization operates. The question is whether bounties are the most effective means by which to reduce the harm created by fraud