An employer’s guide to whistleblowing

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In the most successful organisations is the ability for employees to disclose information confidentially and, if desired, anonymously. This might take place if the worker is witnessed to bribery, performance that compromises safety, unfair treatment of staff and any other behaviour deemed unethical or unlawful.

To ensure the workforce is able to do this in a way that protects them, companies must set up a whistleblowing policy - that is, an official document that outlines the company’s approach to safe reporting - and a whistleblowing platform that ensures security and confidentiality.

A whistleblowing platform is a digital solution that companies use to enable employees to report wrongdoings securely. It is designed in compliance with national whistleblowing legislation and the EU Whistleblowing Directive (or equivalent), ensuring confidentiality and protection for employees throughout the process.

Enabling the reporting of misconduct allows companies to identify and address issues before they escalate while assuring employees that their complaints will be heard and handled appropriately.

What is a Whistleblowing System and How Does It Work?

A whistleblowing system is software that provides a platform for employees and potential partners to report malpractice, unlawful, or unethical acts.

Also known as a reporting platform, it allows employees to submit reports through a secure form, contact investigation offices, send attachments, and communicate with case handlers. The system ensures the confidentiality of the whistleblower and any third parties mentioned in the report, protecting against unauthorised access. Employees can also report anonymously if the system offers this option.

Which Companies Need a Whistleblowing System?

Following the EU Whistleblowing Directive, all EU countries must have developed a National Whistleblowing Protection Act, requiring companies with 250+ and later 50+ employees to implement a whistleblowing channel. This applies to both the public and private sectors, with deadlines varying by country. Companies in the EU with more than 50 employees must have a whistleblowing system to avoid heavy fines for non-compliance.

Different types of Whistleblowing Channels

Companies can use various whistleblowing channels to promote transparency and protect their interests. The level of security, anonymity and confidentiality may differ across these systems and include:

  • Digital Whistleblowing System: Secure and confidential online platforms or website forms allowing anonymous reports.
  • Email: Dedicated email channels for reporting, though they pose privacy and security concerns.
  • Phone Line: Toll-free hotlines for reporting, available 24/7, but not anonymous.
  • Direct Address/In-Person: Meetings with an internal case handler, though anonymity is not possible.
  • External Ombudsman: An impartial external consultant who can receive reports through various channels.

How Does a Whistleblowing System Work?

While there are different types of channels for breach reporting, the process tends to remain the same, and will generally take the form of the following steps:

  1. Employee Files a Report: Employees report misconduct through the company's whistleblowing system, potentially remaining anonymous.
  2. Case Handler Starts an Investigation: An internal team assesses and investigates the report.
  3. Communication: The whistleblower receives a unique code to track the case and communicate with the investigation team securely.
  4. Resolution and Updates: The whistleblower is updated on the case's outcome within a reasonable timeframe.

Why Should Companies Implement a Whistleblower System?

So, what’s the endgame here? Why would a business invite personnel to ‘expose’ wrongdoing in the company? 

Ultimately, having a solid whistleblowing system is place provides many benefits for the company and helps them to:

  1. Handle cases internally: Address issues before they escalate publicly.
  2. Comply with legal regulations: Avoid fines and comply with national laws.
  3. Create a “speak-up” culture: Encourage transparency and accountability.
  4. Protect employees: Ensure whistleblowers are protected throughout the process.
  5. Prevent damage to brand and economy: Mitigate risks of legal actions and reputational harm.

After all, if there was something going on in your company, wouldn’t you want to know? Implementing a whistleblowing system, and encouraging employees to report workplace issues in a safe space, has untold benefits for company culture, organisational trust - and the health of your business.

How to Implement a Whistleblowing System

So if this is a new initiative in your workplace, how do you get started? Below is a list of steps that will help you get to a fully functional whistleblowing system quickly and efficiently. 

  1. Choose your stakeholders: Appoint impartial members from HR, compliance, or leadership teams.
  2. Choose a whistleblowing system: Opt for a secure, digital platform - ask industry friends for recommendations or check out your options on a review site.
  3. Create a whistleblower policy: Develop a detailed policy and make it accessible.
  4. Communicate your policy: Ensure employees are aware of the system and their rights.
  5. Top features to look for: Ensure the system offers transparency, GDPR compliance, anonymous reporting, flexible case management, and multilingual support.

Key Considerations for Whistleblowers

Building a culture of trust and openness in your workplace is key to making your whistleblowing system work. Without encouragement, confidence - and more importantly the know-how to use the platform, make sure your whistleblowers:

  1. Know their rights: Ensure your employees understand their protections against retaliation and data privacy.
  2. Prepare: Organise training of the new product and/or process, and let them familiarise themselves with the company’s whistleblowing policy.
  3. Choose between anonymous and confidential reporting: Highlight the options available and let them know the differences of the different methods.

A whistleblowing system is an essential tool for maintaining compliance, fostering a culture of integrity, and protecting both the company and its employees.

Need a whistleblowing platform?

Veremark’s new whistleblowing platform launched in 2024, and is already used around the world by leading brands. Our easy-to-use interface, complete security and the option to report anonymously means that employees feel safe and secure to flag malpractice and unsafe behaviour. 

Book a demo, and see how easy Veremark’s whistleblowing software is to implement in your organisation.

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