Thesis defense by Wael M. Kaafarani

An MBA thesis defense entitled “Whistle-blowing: A strategic game changing for improving the internal controls environment in Lebanese organizations,” by Wael M. Kaafarani, will take place on Monday July 30, 2012 at 9 AM in BB 1617. All are welcome to attend.

Thesis Committee: Dr. Renee Ghattas (advisor), Dr. John Mcgill and Mrs. Janine Zakka

Abstract: The question of the effectiveness of applying “whistle-blowing” policies has been a debatable topic for decades. The United States of America, through the SEC (Security and Exchange Commission), COSO, and Sarbanes-Oxley act has been increasing the incentives for potential whistle-blowers to reveal unethical behaviors. On the other hand, there are many individuals from different Organizational Behavior schools, opposing the idea of applying whistle-blowing policies and procedures, due to the negative effect it has on the motivation of managers, in addition to the high cost of maintaining such procedures.

In this study, the researcher has explored in the literature review topics such as corruption, ethics, whistle-blowing, famous whistle-blowers and frauds. Furthermore, the study relied on the combination of the two surveys conducted, white-papers produced by prestigious advisory firms, and the literature review to formulate a set of related findings, describing the current awareness level of the importance of applying whistle-blowing policies in the Lebanese entities, and the effect of such applications on the internal controls’ environment, frauds, micro and macro-economics of Lebanon.