What is whistleblowing
policy.
Whistleblowing policy is process implemented by the employer
to make a platform and also to encourage employees to reveal / disclose information
about any wrong doings and illegal activities of co-workers, supervisors or
even may be customers or suppliers.
Importance of a whistleblowing policy to an organization.
In an organization hierarchy there can be so many levels and
there can be thousands of employees and may be a huge branch network depending
on the volume or the capacity of the organization. In such scenario’s it’s not an
easy task to overlook each and every employee.
Whistleblowing policy encourages employees to raise all the
concerns internally to highest levels of the organization rather than going public.
Other main importance of having said policy is it creates encouraging culture
to report illegal or wrong doing at the very early stage so the employer and address
and correct issues before causing a serious reputation damages from any illegal
activities , regulatory breaches or corruptions
Even though whistleblowing policy is not compulsory requirement
in our country it is best to have a proper whistleblowing process in organization.
And also it’s necessary to train senior managers to handle whistleblower’s
inquiries in a proper way whilst protection the confidentiality of the whistleblower.
(Lucas H,2019)
Source -
HR Division has a Key Role in handling managing and specially
protecting Whistleblowers. Depending on the nature of the complaint reviewing committee
can be changed yet HR has a vital role to play when it comes to disciplinary actions.
What if Whistleblower wrong - Sometimes whistleblower can be wrong or misinformed. But they will still be protected under the company whistleblowing policy and should inform the outcome accordingly. Even though information they disclosed turnout be an allegation still protection under whistleblowing policy should be applied unless they fabricate evidences in bad faith.
Whistleblowing is an accepted concept and many countries have a legal projection to whistleblowers. As an example In the United States, federal whistleblower protection laws have been in place since 1978, and also stating from 2010 all the listed companies in US stock market implemented a new rules and guidelines rewards for anonymous disclosures prohibiting whistleblower retaliation under the Dodd Frank Act (Opensocietyfoundations.org. 2019).
Many organizations now recognize whistleblowers’ role in
reducing corruption and improving integrity however whistleblowing is a very
sensitive subject in HRM and it should be handled with lot of care , confidentially
and more importantly independently . (Lucas H,2019)
References
Lucas, H., 2019. Helen L, Author at Citrus HR. [online] Citrus HR. Available at:
<https://citrushr.com/blog/author/helenl/> [Accessed 25 July 2021].
Opensocietyfoundations.org. 2019. Why
Whistleblowers Matter. [online] Available at:
<https://www.opensocietyfoundations.org/explainers/why-we-need-whistleblower-protections>
[Accessed 25 July 2021].
Available at: https://www.uemedgenta.com/whistleblowing
[Accessed 24 july 2021].
Thank you Tharindu, good article.
ReplyDeleteIt is difficult to find companies with Whistleblowing policy implemented but certainly an import matter to be considered by all companies.
As you have stated this should be handled with a lot of care and concern to be fair and just, as it could be misused or abused if no proper process is established. Also, ethical and employee privacy need to be considered too.
You brought a really interesting topic to start a discuss Tharindu.
ReplyDeleteNice article.
The people who being with the apparel industry aware on this concept. And most of the leading brands in Apparel Industry are requested from their suppliers to implement this concept. Main reason behind on this request is the current trend in the world. People are really concern on some factors rather than the money that spent on buying a product. Therefore, as an example the leading apparel brands have been uplifted their Brand image by marketing that they are not promote any product made out of Forced labour utilization.
Even though the Whistleblowing policy is encourage by certain parties, organization should prepare more before the implementation. Inculcate a right culture & right attitude in the organization lead for better results than it expected.
Important topic Tharindu. Some of the Sri Lankan banks use the whistleblowing policy very well. Organisations which are having very high operational risk may benefited from it.
ReplyDeleteMainly Banks and Financial organizations of Sri Lanka as well as the world, is currently using this mechanism to mitigate the risk involve in Operational and Financial. Meanwhile this ensures the Trustworthiness of the employers and integrity of the individuals. Reputation risk is the Key area covered by this policy and both employer and employee will be protected eventually.
ReplyDeleteThis is commonly used in the banking and financial sector for prevention of fraud. Helps to prevent unauthorised activities and helps to develop security measures.
ReplyDeleteAn interesting article Tharindu. Whistleblowing is a key tool in fighting against corruption. However, Whistleblowers often face severe repercussions for their actions. They lose their jobs or charged with crimes for violating laws or employment agreements. In some cases, they face physical danger. Over 30 countries around the world have adopted legal regimes to encourage these important disclosures. Thankyou for sharing.
ReplyDeleteInteresting article Tharindu , clearly explained the 'Whistleblowing' means the reporting by employees of suspected misconduct, illegal acts or failure to act within the organization. The aim of this Policy is to encourage employees and others who have serious concerns about any aspect of the organization's work to come forward and voice those concerns. Thanks for sharing
ReplyDeleteInteresting article Tharindu.
ReplyDeleteOn the other hand, there is no wonder that whistleblowers support the companies and government agencies for which they work objectively. Many organizations' deep-seated cultural bias against whistleblowers is not only antiquated but also counterproductive. If the government is significant about detecting fraud, waste, and abuse, as well as ensuring public safety, effective anti-retaliation laws that motivate, reward, and safeguard whistleblowers must be implemented.
Thanks for sharing your knowledge
Hi Tharindu, you have clearly explained what is the Wristleblowing policy and how it is important to the organization.It encourages employees to address wrongdoings quickly and potentially before regulatory action taken or any damage happen to the organization.
ReplyDeleteWhistleblower policy is a set of rules and guidelines that all stakeholders in a business, whether employees, contractors, shareholders, vendors, or any other person, must follow when they witness something illegal or unethical occurring within the organization, whether intentionally or unintentionally, and such acts are not in the public interest or adversely affect the shareholders' interests.
ReplyDelete