Abstract:
Whistleblowing refers to the act of reporting illegal, fraudulent or unethical activities within
an organization to the appropriate authorities. Whistleblowing was previously limited to the
public sector, but has now extended to the corporate sector. This expansion is a result of
recognizing the significant and widespread consequences of corporate fraud on the general
public. Whistleblowers are vital in the fight against corporate fraud and financial crimes,
thereby preventing further harm and holding the perpetrators accountable. They play a crucial
role in uncovering unethical practices and exposing financial wrongdoing, acting as a necessary
safeguard for corporate integrity and accountability. This paper explores the effectiveness of
whistleblowers in detecting and preventing corporate fraud, using global examples to highlight
the significance of robust frameworks and protective measures. In countries like the United
States and the United Kingdom, where comprehensive whistleblower protection laws exist,
whistleblowers have made significant contributions to uncovering fraudulent activities, resulting
in promoting transparency and corporate governance. The current laws in Sri Lanka lack
adequate provisions for whistleblowing and fail to effectively protect whistleblowers, which
hinders the fight against corporate fraud. This study employs library research to gather primary
and secondary qualitative data from statutes, case studies, books, and journal articles with
a comparative approach to the United States and the United Kingdom to suggest effective
whistleblowing mechanisms and legal frameworks to help prevent fraud in Sri Lanka. ...
