asked 16.8k views
4 votes
How were stakeholders impacted by the whistleblowers
actions?
• Shareholders/owners

asked
User M Yadav
by
8.3k points

1 Answer

4 votes

Final answer:

Whistleblower actions can impact shareholders/owners in multiple ways, including reputation damage, financial loss, and changes in corporate governance.

Step-by-step explanation:

Stakeholders, including shareholders/owners, can be impacted by the actions of whistleblowers in various ways. When whistleblowers expose wrongdoing or illegal activities within a company, it can lead to negative consequences for shareholders.

For example, the company's reputation may be damaged, leading to a decrease in the stock price and a loss of shareholder value. Additionally, legal ramifications and financial penalties resulting from the exposed misconduct can directly impact shareholders' investments and returns.

Furthermore, whistleblowers' actions may also lead to changes in corporate governance and increased regulatory scrutiny, which can affect shareholders' rights and protections.

answered
User GRVPrasad
by
8.5k points
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