Final answer:
Whistleblowing is the act of employees exposing illegal or unethical activities of their employers to outsiders. Whistleblowers are essential for corporate integrity and public safety, and are legally protected when reporting wrongdoing.
Step-by-step explanation:
The act of an employee exposing an employer's wrongdoing to outsiders is known as whistleblowing. This involves situations where employees discover activities within their company that are illegal, unethical, or not in the public interest and decide to take their concerns to someone outside of the company, such as a regulator, the media, or law enforcement.
The aim of whistleblowing is often to correct the wrongdoing, and the process can be protected by laws that prevent retaliation against the whistleblower. Such actions are crucial for maintaining corporate integrity and public safety, as seen in cases like the Firestone/Ford tire controversy. Whistleblowers play a pivotal role in highlighting issues that companies must address to avoid severe legal and financial consequences. Furthermore, new legislations support employees who lodge confidential complaints, ensuring their protection from potential backlash.