Giving out rewards to informants. Good or Bad?

I'm not sure which country you're talking about, but in the United States cash rewards are usually not disbursed until the tips turn out to be good. That way you can't get someone in trouble as a form of revenge. I do think that offering a cash incentive is a good idea, as it may cause people to come forward who otherwise might not. I think as long as the facts are verified BEFORE the rewards are handed out then it's okay.

There is no good or bad. It is just an effective way to get information. :P If left to their own moral scruples, most people would rather not report - especially if it might cause danger to their lives, families, properties, etc. But with the lure of money, well, money makes the mare go round! ^^

Yeah, I can see your point there. In malaysia, the police force has made a reward system which pays informants who managed to take pictures of traffic wrongdoers. To me this has some positive, yet negative impact to the society. From the positive aspect, the reward system will make more people become aware that they can be reported easily because there are so many informants out there cooperating with the police. On the other hand, some people might see this as a business opportunity. From this comes sabotaj, where people created a scenario so that a person would be forced to make a traffic wrongdoing. That's why this system is abolished recently because there are so many disadvantages compared to benefits.

I think there is nothing wrong with giving rewards to informants. The people being informed on are doing something wrong according to the laws. I wouldn't worry about someone getting mad at you and informing on you unless you were doing something wrong - the authorities are going to find out if the informant is lieing and they won't get paid and could be in trouble themselves for doing that.