Richard Moberly (Nebraska) has posted on SSRN his upcoming piece in the Brigham Young Law Review: Sarbanes-Oxley’s Structural Model to Encourage Corporate Whistleblowers.
From the abstract:
Recent corporate scandals demonstrate that rank-and-file employees often remain silent in the face of significant fraud. This silence is unfortunate because corporate employees have inside knowledge of misconduct that gives them an information advantage over more traditional corporate monitors, such as independent directors and government regulators.
To address this problem, the Sarbanes-Oxley Act utilized a new approach that encourages employee whistleblowers to disclose information about corporate wrongdoing. This approach, which [I] label[] the “Structural Model,” requires that corporations provide a standardized channel for employees to report organizational misconduct to official monitors within the corporation.
See full Article.
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