Whistleblowing Is it working The Problem with Whistleblowing

Whistleblowing: Is it working?

The Problem with Whistleblowing 1. The role whistleblowing plays in organisations; what is it meant to achieve? 2. How is the process of whistleblowing positioned and does that work? 3. Whistleblowing is career-ending. Discuss. 4. Ethics, integrity and whistleblowing; an oxymoron? 5. The future role for whistleblowing

Issue 1. What is whistleblowing meant to achieve? • A channel for wrongdoings of a company and its responsible officers to be reported; • • Illegal Unethical Misconduct Dangerous • Public interest; • • Market security Consumer protection Transparency Control • So why all of this now? • Motivated by cases of regulatory investigations into the conduct of senior management and/or key function holders across a breadth of financial services firms as well as a number of instances that have seen the misuse of company’s internal security channels to identify a whistleblower.

Issue 2. Whistleblowing process design • What does a “typical” whistleblowing policy, process and control look like? • What elements does it have? A defined policy with an owner A cultural commitment to whistleblowing Dedicated reporting channels A specific team or individual who manages reports Investigation process Anonymity Confidentiality Remember what whistleblowing is meant to achieve? Does this process design help or hinder?

Issue 2. Is it working?

Issue 3. Blowing the whistle is career-ending

Issue 4. Ethics, integrity & whistleblowing • Whistleblowing controls are often cited as being a positive example of effective culture, ethics and integrity in a firm. But… • If a firm is ethical and has integrity – is whistleblowing needed? • This may depend upon: • The firm’s culture • Organisational approach to whistleblowing (encouragement, respect) • How can firms develop a “whistleblowing culture”? Should they?

Issue 5. What’s the future of whistleblowing controls? Legislation: • EU Whistleblowing Directive: • Aims to strengthen whistleblowing as a valuable detection and compliance mechanism. • The proposed legislation pertains to whistleblower protection when breaches of EU law are reported • Focus is on: • Reporting mechanisms • Protection against retaliation • Protection as part of judicial proceedings Firms: • • • Cultivate a whistleblowing culture; stop whistleblowing being considered disloyal Consider rewarding whistleblowers Better internal investigative procedures needed Improved internal management of protection of whistleblowers Better training on raising concerns

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