Question

Contrast product liability (external forces) with whistleblower (internal forces). Which is the better lever to force companies to follow the rules?

Answer 1

The difference between the product liability and whistleblower are explained below:

Product Liability	Whistleblower
Product Liability is a term in law where the seller will be held responsible or liable for handling over defective product to the customers.	Whistleblower is an employee in an organization who has the liberty to raise concerns against activities which is considered to be illegal.
People involved here can be manufactures, suppliers, distributors and retailers.	This employee can raise the issue as per the organization authorised channel under the audit committee.
If the defective product causes injury then the responsibility lies with all the sellers in the distribution chain.	This policy is to encourage employees to raise voice against wrong doing.
The injured person can recover damages with this product liability law easily.	This whistleblower policy generates an environment of trust and integrity.

Whistleblower policy is the best for companies to enforce and follow rules due to below reasons:

1. It is always better for an internal force to control the organization instead of external force entering and totally spoiling the brand name of the organization.

2. Whistleblowing will avoid the issues and mistakes inside the organization itself and will never allow for it to go public and then the organization to look into.

3. This policy empowers employees to be more responsible by giving them the authority to raise concern and issues which is far more better than the law interfering in a business.