“Effective whistleblowing is [therefore] a key component in any strategy to challenge inappropriate behaviour at all levels of an organisation. It is both an instrument in support of good governance and a manifestation of a more open organisational culture.”
The Value Proposition for Whistleblowing?
Scandals, frauds and accidents have occurred across all sectors despite employees and others knowing or suspecting that things were not right. Increasingly, organisations are seeing the value in harnessing the knowledge of their staff to enable early detection of risks and issues . Recognising that encouraging and protecting those who speak up is essential to integrity, good governance and risk management, regulators are now requiring that internal whistleblowing systems be put in place.
The benefits of effective internal whistleblowing systems go well beyond the identification of risks and misconduct. According to research published in the Harvard Business Review the ‘functioning internal hotlines are of paramount importance to business goals including profitability. The more employees use internal whistleblowing hotlines, the less lawsuits companies face, and the less money firms pay out in settlements.’ This is because, importantly, effective internal whistleblowing systems give organisations the first opportunity to address any malpractice uncovered.
Beyond providing effective mechanisms to raise concerns, developing a ‘whistleblowing - friendly’ culture can be more difficult. Staff must feel that it is safe to raise concerns and that anything they raise will be investigated and handled appropriately. Effectively it relies on organisational trust. Within such a culture, staff will feel that their voice matters, and in the knowledge that it is safe and acceptable to raise concerns, misconduct will be deterred. Collectively, this will help organisations to attract and retain staff with integrity that are committed to fostering an ethical culture.
Watch BBC news on Why whistleblowing still matters.