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3 Steps to Getting the Most From Corporate Whistleblowers


3 Steps to Getting the Most From Corporate Whistleblowers

Getting employees to report wrongdoing is only the start

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The last few years have demonstrated the power of whistleblowers to effect change, hold companies accountable and stop corruption. And the glaring absence of them in some of the biggest ethical lapses and most devastating frauds in history has put the spotlight on the critical role they play in keeping the the public safe and the economy healthy.

While legislation now forces companies to put into place whistleblower programs, how companies use the programs determines whether they will be successful. Here are three ways to tip the balance to success.

1. Investigate Every Complaint

After investing the time and money into developing multiple channels for employees to report misconduct, some companies tick the box for compliance and move on. But getting a whistleblower program to work means more than just having a system in place. It means companies have to follow through on complaints from whistleblowers.

Conduct a preliminary investigations into every complaint to determine whether or not the claim warrants further investigation. Employees who don't think the company is listening to and acting on their concerns will stop reporting misconduct internally, and may go outside of the organization to report misconduct.

A good investigative case management solution can ensure every complaint is captured and assigned for follow-up, no matter what reporting channel the relator uses. Case management software also tracks the ensuing investigation, provides a single repository for all case information and contains a tool for reporting on cases.

2. Guard Against Retaliation

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Whistleblowers are vulnerable to retaliation which, according to the  2011 National Business Ethics Survey, is rising at an alarming rate. According to the report from the Ethics Resource Center (ERC), more than one in five (22 per cent) of whistleblowers experienced some form of retaliation.

“While most U.S. workers are currently ‘doing the right thing’ by following company standards and reporting wrongdoing when they see it, we see trouble ahead,” said ERC President Patricia J. Harned, Ph.D., in a press release introducing the findings. “Retaliation against whistleblowers and pressure on employees to compromise their ethics standards are at or near all-time highs."

Protecting whistleblowers from retaliation benefits everyone and companies can do this by monitoring changes in employee performance appraisals, pay raises and other workplace opportunities following a complaint. Encouraging whistleblowers to speak up if they feel they are experiencing retaliation can also help, but requires an open-door culture that a lot of companies don't have.

When companies take a proactive approach to fighting retaliation, employees feel confident that they will be supported for raising concerns about workplace misconduct and not end up in trouble for doing the right thing.

3. Promote Your Program

Putting a whistleblower program in place is just a start. Employees should understand its importance to the company. Ongoing education and promotion of the program can get the message to employees. An e-mail and a policy handout once a year aren't enough.

Train employees on the various ways they can report misconduct or retaliation and the option to remain anonymous. Include the information in your code of conduct and refer to it frequently to stress its importance.

Training also includes setting the right example. Potential whistleblowers need to see management taking action when employees violate workplace policies. As tired a term as "tone from the top" is, it can make the difference between a whistleblower program that flies or flops.