BRT Letter to Chairman Garrett and Representative Waters on the Whistleblower Improvement Act | Business Roundtable


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Delivered December 12, 2011
The Honorable Scott Garrett
Subcommittee on Capital Markets and Government Sponsored Enterprises
U.S. House of Representatives
Washington, DC 20515
The Honorable Maxine Waters
Ranking Member
Subcommittee on Capital Markets and Government Sponsored Enterprises
U.S. House of Representatives
Washington, DC 20515
Dear Chairman Garrett and Representative Waters:
Business Roundtable, whose member CEOs lead companies that collectively employ more than 14 million Americans and generate over $6 trillion in annual revenues, endorses H.R. 2483, the Whistleblower Improvement Act, because it will protect and reinforce internal reporting mechanisms that enable companies to enforce the highest standards of conduct and ethical behavior. Business Roundtable urges all members of the Committee on Financial Services to vote to approve this legislation.
America’s business community has instituted strong reporting and compliance measures that encourage employees and corporate officers to report misconduct. These internal compliance systems are America’s first line of defense against fraudulent or unethical behavior.
H.R. 2483 strengthens internal compliance by requiring whistleblowers to first report misconduct internally before turning to the SEC. The legislation eliminates the perverse incentives included in the current whistleblower rule that encourages employees to bypass internal company compliance systems when reporting possible misconduct. The bill also prevents internal company compliance personnel, and whistleblowers who are themselves culpable for misconduct, from being eligible for whistleblower bounties – two additional sensible reforms.
Business Roundtable stands ready to work with you to see this important corporate governance reform measure enacted into law.
Thank you for your attention to this issue.
Alexander M. Cutler
Chairman and Chief Executive Officer, Eaton Corporation
Chairman, Corporate Governance Committee, Business Roundtable
C: Subcommittee on Capital Markets and Government Sponsored Enter