Whistleblowing White Paper: Guides, Factsheets, Studies | integrityline.com

Whistleblower protection for businesses – How to implement an effective whistleblowing system

Angelina Dongauser — Tue, 01 Oct 2024 10:41:17 +0000

Whistleblower protection for businesses - How to implement an effective whistleblowing system

A whistleblowing system provides your employees the chance to report grievances in the company completely anonymously and via a protected channel. This early warning system offers advantages for companies of all sizes, as it can uncover grievances at an early stage and save the company from potential fines and loss of reputation.

Find out more in this white paper about how to successfully implement a whistleblowing system in your organisation.

Content of the white paper:

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2023 Whistleblowing Survey – Examining the state of Europe’s Whistleblowing Landscape

Angelina Dongauser — Thu, 22 Jun 2023 09:49:32 +0000

2023 Whistleblowing Survey – Examining the state of Europe’s Whistleblowing Landscape

The goal of our 2023 Whistleblowing Survey “How do European companies address the whistleblowing legislation?” was to understand how companies are dealing with the requirements of the new whistleblower protection laws coming into effect across Europe and how well placed they are to overcome future compliance challenges.

The 2023 Whistleblowing Survey surveyed a total of 1,002 compliance professionals between March and April 2023. Respondents represented a diverse range of company sizes, from small and medium-sized enterprises to larger enterprise companies with over 5,000 employees. The majority of participants were based in Europe, with nearly 60% located in Germany, Italy, France, and Spain.

Find all results and the most relevant key learnings of this study in this white paper!

Content of the white paper:

– Do companies currently have channels in place and if so, why did they introduce them in the first place?
– What type of systems they offer and what type of whistleblowing complaints are companies receiving and how are they dealing with them?
– What are the most challenging compliance topics in 2023?

Download the white paper now

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Expert Guide on the Whistleblowing Law in the Netherlands

Angelina Dongauser — Fri, 14 Apr 2023 09:18:10 +0000

Expert Guide on the Whistleblowing Law in the Netherlands

On 18 February 2023, the Dutch whistleblowing law (‘Wet bescherming klokkenluiders’) partially entered into force. The provisions regarding anonymous reporting and enforcement of this law by the House of Whistleblowers will enter into force at a later date. Medium-sized employers (with 50 to 249 employees) have until 17 December 2023 to comply with the new Dutch law. However, they must meet the requirements of the old Dutch law on Whistleblowing (‘Wet Huis voor klokkenluiders’) until that date.

Learn in our free guide about the legal requirements in the Netherlands and how your company can comply.

Content of this white paper:

In cooperation with

EQS Group would like to thank our partner Taylor Wessing Netherlands for the comprehensive insights and assistance in compiling this guide.

Download the white paper now

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Expert Guide on the Whistleblowing Law in Belgium

Angelina Dongauser — Thu, 02 Feb 2023 16:38:21 +0000

Expert Guide on the Whistleblowing Law in Belgium

On 28 November 2022 the Act transposing the Whistleblowing Directive into national law was eventually enacted by the Chamber and was published in the Belgian Official Gazette on 15 December 2022.

As a result, companies employing 250 employees or more are required to have their internal reporting channels up and running from 15 February 2023. Companies employing between 50 and 249 employees have to comply with this requirement by 17 December 2023.

Learn in our free guide about the legal requirements in Belgium and how your company can comply.

Content of this white paper:

In cooperation with

EQS Group would like to thank our partner PwC Belgium for the comprehensive insights and assistance in compiling this guide.

Download the white paper now

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Expert Guide: Whistleblowing Laws in the European Union

Angelina Dongauser — Thu, 19 May 2022 07:00:26 +0000

Expert Guide: Whistleblowing Laws in the European Union

A glance at the implementation of the EU Whistleblowing Directive in EU Member States

Content of this White Paper:

Overview of the requirements of the EU Whistleblowing Directive
National whistleblowing legislation throughout the EU
EU Whistleblowing Directive transposition status by country
Tips on fulfilling local whistleblowing requirements
How speak-up culture works
How to implement a whistleblowing system

Legal situation as of February 2024 and subject to change. This document will be updated accordingly.

In April 2018, the EU Commission launched a proposal for a directive aimed at providing uniform protection for whistleblowers and a provisional agreement was reached between member states and the European Parliament in March 2019. Adopted as Directive 2019/1937, the EU Whistleblowing Directive aims to provide common minimum standards of protection for whistleblowers across the EU and seeks to bring an end to a confusing patchwork network of national protection legislation. Most EU member states failed to meet the 17 December 2021 transposition deadline but steady progress was finally seen throughout 2023. Given the legislation’s ramifications for companies, this guide leverages EQS Group’s expert partner network to paint the most comprehensive picture possible of the ongoing transposition process around the continent.

While the White Paper takes a deep dive into the legislative process around Europe, a basic overview of the situation at country level can be found below:

Austria

Implemented

Austria’s parliament approved the country’s new whistleblowing law in February 2023. The “HinweisgeberInnnenschutzgesetz” or “HSchG” transposes the EU Whistleblowing Directive into national law. With its promulgation, the law came into force on February 25, 2023. The law provides a transitional period of six months for legal entities with 250 or more employees to set up internal whistleblowing systems.

Belgium

Implemented

The Belgian Chamber of Representatives has passed a bill proposed by Federal Employment Minister Pierre-Yves Dermagne giving better protection to whistleblowers with its French and Flemish titles translating to the “Draft Act on the Protection of Persons Reporting Violations of Union or National Law Within a Private Sector Legal Entity”. It saw the EU Whistleblowing Directive transposed into the Belgian legal system and the new measures came into force for companies with at least 250 employees in February 2023. Organisations with at least 50 employees had to comply by December 2023.

Bulgaria

Implemented

After it failed to adopt a new whistleblowing law in December 2022, Bulgaria’s National Assembly approved the legislation on 27 January 2023. It adopted the EU Whistleblowing Directive’s minimum standards for protecting persons reporting breaches of EU law and came into force on 4 May 2023, while the provisions establishing obligations for employers in the private sector with between 50 and 249 employees applied from 17 December 2023. One of the key differences to previous proposals is that the Personal Data Protection Commission has been designated to receive and process external reports.

Croatia

Implemented

After two readings in late 2022, the Croatian parliament adopted “the Croatian Whistleblower Protection Act” which transposed the EU Whistleblowing Directive. It closed loopholes in the country’s previous whistleblower legislation and incorporated extended mechanisms, bringing Croatia in line with the new European protection standard.

Cyprus

Implemented

The EU Whistleblowing Directive was transposed in Cyprus on 04 February 2022 when the “Protection of Persons Reporting Breaches of Union and National Law in the Official Gazette” was published. It introduced a range of new internal and external reporting provisions as well as extensive protective measures for private and public sector whistleblowers.

Czech Republic

Implemented

In November 2022, the Czech government approved a new draft bill on the protection of whistleblowers to transpose the EU Whistleblowing Directive into national law. The new Whistleblower Act implementing the EU Whistleblowing Directive was passed in early June 2023 and came into force on August 1st of that year.

Denmark

Implemented

Copenhagen passed its Whistleblower Protection Act (Lov om beskyttelse af whistleblowere) on 24 June 2021 obliging all employers with more than 50 employees to set up a whistleblowing system. Denmark is notable for being the very first EU member state to transpose the EU Whistleblowing Directive into national law.

Estonia

In progress

The transposition process in ongoing in Estonia where a new protection bill passed the first reading in parliament at the start of 2022. It has received heavy criticism and hundreds of amendments and its planned entry into force on 1 June 2022 did not occur. The frustrating process is exacerbated by the fact that there is no joint and cross-sectoral valid regulation for whistleblower protection in Estonian law.

Finland

Implemented

Finland has transposed the EU Whistleblowing Directive and the new national legislation entered into force on 1 January 2023. It substantially enhances protection for whistleblowers and enables employers to receive and address suspected cases of wrongdoing. Private entities with 250+ employees and public entities with at least 50 staff members were obliged to establish internal reporting channels channels by 1 April 2023. Private sector organisations with between 50 and 250 employees had to complete the process by 17 December 2023.

France

Implemented

After several months of parliamentary discussions and a positive ruling by the French Constitutional Council, the law transposing the EU Directive was passed in France. It amends the existing Sapin 2 law, covering all entities with 50 or more employees, public or private. Officially entitled “LOI n° 2022-401 du 21 mars 2022 visant à améliorer la protection des lanceurs d’alerte”, the new law is a considerable improvement on Sapin 2, and it brings France in line with the rest of Europe in terms of whistleblower protection.

Germany

Implemented

Germany’s Federal Cabinet passed a government draft for the Hinweisgeberschutzgesetz or Whistleblower Protection Act in July 2022 and it was passed in the Bundestag on 16 December 2022. The Bundesrat rejected the law in February 2023. In a second approach in July 2022, Germany’s Federal Cabinet passed a government draft for the Hinweisgeberschutzgesetz or Whistleblower Protection Act. The new measures came into force at the beginning of July 2023.

Greece

Implemented

After a sluggish transposition process that was criticised for a lack of transparency, Greece’s draft whistleblower protection legislation was submitted to parliament on 31 October 2022. On 11 November 2022, it was passed and is now in force with two different implementation dates. That means that Greek organisations will have to implement a number of new compliance measures before the middle of 2023.

Hungary

Implemented

Hungary was the last EU member state to get its EU Whistleblowing Directive transposition process underway and a proposal for a new law was finally submitted to parliament on 28 February 2023. The transposition process in Hungary has been delayed and complicated. The new Whistleblower Protection Act to implement the EU Whistleblowing Directive in Hungary was finally passed at the end of May 2023 and it entered into force in July 2023.

Ireland

Implemented

After missing the original deadline, Ireland transposed the EU Whistleblowing Directive after passing the Protected Disclosures (Amendment) Bill 2022 in July 2022. It substantially extends the scope of protection by providing greater clarity for both whistleblowers and employers. A key aspect of the amendment involves the introduction of formal reporting channels at companies that will be monitored and enforced by the Inspectorate of the Workplace Relations Commission. Ireland’s new measures came into force on 01 January 2023.

Italy

Implemented

In September 2022, the Italian government approved a new delegation law whereby a draft bill transposing 14 Directives, including the Whistleblowing Directive, must be completed within a three-month period and this also applies to the government recently elected. On 09 December 2022, the Council of Ministers met and approved the delegation law and parliament committees have 60 days to review it. The legislation received the green light in March 2023.

Latvia

Implemented

In 2018, Latvia adopted a whistleblowing law that had numerous flaws. These were addressed when Riga transposed the EU Whistleblowing Directive on 20 January 2022 with the new measures entering into force on 04 February 2022. While the new legislation implements the requirements of the Directive, improvements have not been ruled out in the future, such as the introduction of a whistleblower reward mechanism.

Lithuania

Implemented

Like neighbouring Latvia, Lithuania had legislation dedicated to the protection of whistleblowers in place before the adoption of the EU Whistleblowing Directive. Amendments were then made to the existing legal framework and the changes came into force in February 2022, transposing the EU legislation into national law.

Luxembourg

Implemented

Shortly after the EU Whistleblowing Directive deadline expired in late 2021, Luxembourg’s government issued a draft law for its transposition. The Whistleblower Protection Act was passed in Luxembourg in mid-May 2023. The “Loi du 16 mai 2023 portant transposition de la Directive (UE) 2019/1937 du Parlement européen et du Conseil du 23 octobre 2019 sur la Protection des personnes qui signalent des crimes du droit de l’Union” exceeds the minimum requirements of the directive as expected and includes a broad definition of whistleblowers. It also offer a point of contact to support whistleblowers.

Malta

Implemented

Whistleblower protection legislation has been in place in Malta since 15 September 2013 in the form of “the Whistleblower Act (Cap 527”). Valetta amended it in December 2021, passing a bill called the “Protection of the Whistleblower (Amendment) Act 2021” which transposed the Directive, strengthening and expanding protection for whistleblowers.

The Netherlands

Implemented

The Netherlands finally transposed the EU Whistleblowing Directive in January 2023 and its new national legislation introduces a swathe of requirements such as updated whistleblowing procedures, anonymous reporting and the appointment of an independent reporting body. The previous Wet Huis voor klokkenluiders or Dutch Whistleblower’s Authority was criticised for numerous weaknesses and the new law has seen it renamed the Wet Bescherming Klokkenluiders.

Poland

In progress

Poland missed the original deadline and its new government has announced its commitment to the Directive’s transposition. The Polish Act on the Protection of Persons Who Report Breaches of Law, known as the “Whistleblower Act,” will regulate the procedure for reporting breaches of law and the protection of those reporting them.

Portugal

Implemented

An early transposer of the EU Whistleblower Directive, Portugal implemented the new measures on 20 December 2021 through Proposta de Lei 91/XIV and they came into force on 18 June 2022. The Portuguese government took the transposition process extremely seriously behind the scenes and it was characterised by speed and a lack of publicity.

Romania

Implemented

Romania was among the countries that missed the initial EU Whistleblowing Directive transposition deadline and after numerous delays an improved version of a national whistleblowing law was adopted by parliament on 13 December 2022. It entered into force on 22 December 2022 and required regulated entities to implement whistleblowing channels by 6 February 2023. There are still concerns about the new legislation, particularly in the area of anonymous reporting which falls short of meeting international best practice principles.

Slovakia

Implemented

Slovakia established its existing measures to protect whistleblowers on the basis of Whistleblowing Act No.54/2019 Coll on the protection of persons reporting anti-social activities which replaced previous legislation from 2014. The new Whistleblower Law was passed on May 10, 2023 and added national law to the previous law, which was already broadly in line with the requirements of the Directive. Despite the progress, a change of government in Bratislava and a swathe of legal reforms will likely weaken Slovakia’s whistleblower protection standards.

Slovenia

Implemented

After a series of proposals were circulated and numerous delays, Slovenia finally passed its Whistleblower Protection Act on 27 January 2023, transposing the EU Whistleblowing Directive. The country previously had limited measures in place protecting whistleblowers, but they fell short of the Directive’s requirements. The new law now broadens protection and brings Slovenia into line with the latest European standards.

Spain

Implemented

Spain’s Ministry of Justice started working on a draft law in mid-2020 and it was open to public consultation until late January 2021. On 14 September 2022, the Spanish government approved the new whistleblower protection legislation but 25 Civil Society Organisations called on it to be urgently amended, holding up the transposition process. It was finally completed on 21 February 2023 when the new law was published in Spain’s Official State Gazette.

Sweden

Implemented

After Denmark, Sweden became the second EU member state to transpose the Directive. The Genomförande av visselblåsardirektivet was approved in late September 2021 before coming into force on 17 December 2021. Sweden did have measures in place beforehand, but they had no clause guaranteeing anonymity and confidentiality, a major flaw that was rectified by the implementation of the new EU legislation.

A glance across the EU border

Switzerland

Will not be implemented

Swiss companies with EU branches with 50 or more employees that are subject to EU law must take action and implement internal reporting channels under the Directive. Organisations in Switzerland that are not directly impacted by the Directive are nevertheless advised to comply with it in order to demonstrate good governance and uncover wrongdoing at an early stage to minimise any ensuing damage.

United Kingdom

Will not be implemented

The UK has no legal obligation to transpose the EU Whistleblowing Directive following Brexit but like Switzerland, the new measures will apply to UK businesses operating in mainland Europe above a certain size. The UK does have its own national whistleblower protection legislation in the form of PIDA which has been criticized as being outdated and overly complex.

Acknowledgements

EQS Group would like to thank the following organisations for their comprehensive insights and assistance in compiling this guide:

Download the Expert Guide for a more comprehensive country-by-country analysis

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BKMS® Benchmarking Report 2021: Analyses and Statistics on Whistleblowing Systems in Europe

Angelina Dongauser — Thu, 20 Jan 2022 07:55:33 +0000

BKMS® Benchmarking Report 2021: Analyses and Statistics on Whistleblowing Systems in Europe

About the use, design and communication of the BKMS^® system.

The BKMS^® Benchmarking Report 2021 is the comprehensive study on the use of whistleblowing systems and compliance software in Europe with insightful statistics, analyses and trends for the coming years. We collect this valuable first-hand data annually via an anonymous survey in collaboration with participating companies, all of which are users of the BKMS^® system.

The BKMS^® Benchmarking Report 2021 provides you with exciting insights into the use of compliance software in European companies and supplies important comparitive data that can be applied to your own compliance work.

4 exciting results from the Benchmarking Report 2021

#1: Web-based reporting channels continue to grow in importance.

Compared to the 2020 edition of the research, all other reporting channels offered, such as email, telephone and ombudspersons, are clearly losing relevance.

#2: Share of anonymous first reports increases

65 % of the companies surveyed state that more than half of the initial reports are submitted anonymously.

#3: High quality factor: The reporting category

Reporting categories play an important role in the quality of reports – most participants in the study offer whistleblowers 5 to 6 focus areas to choose from.

#4: Concerns about abuse remain unfounded

78% of the respondents state that the percentage of abusive reports is below 2% while 43% put that figure below 1%. As a result, concerns about a whistleblower system being misused for denunciation continues to be unfounded.

BKMS® Benchmarking Report 2021 – Methodology

For the BKMS^® Benchmarking Report 2021, only data provided to us by our customers utilising the BKMS^® System in an online survey was evaluated.
The report includes data from companies of different sizes, nationalities and industries, resulting in a representative cross-section of the users of the BKMS^® System
The survey data was collected between the end of 2020 and the beginning of 2021. The survey of the companies and organisations as well as the evaluation were carried out completely anonymously
The preparation of the report, the accuracy of the methodology and the evaluations were ensured through cooperation with the statistical consulting unit fu:stat at the Institute for Statistics of the Free University of Berlin.

Download The BKMS® Benchmarking Report 2021

Download the BKMS^® Benchmarking Report 2021 now for free and get:

Register now for our Compliance News Service and learn about exciting news on compliance, whistleblowing and business ethics. After successful registration for the Compliance News Service, you will receive the link to the white paper by email. You can unsubscribe from the news at any time.

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Whistleblowing Report 2021: A comprehensive study on whistleblowing in European companies

Angelina Dongauser — Thu, 07 Oct 2021 13:12:40 +0000

Whistleblowing Report 2021:
A comprehensive study on whistleblowing in European companies

From the design and communication to the use and benefits of effective whistleblowing systems.

About the Whistleblowing Report 2021

1,239 surveyed companies

4 countries

1 topic: Whistleblowing systems in European companies

The risk of falling victim to illegal and unethical behaviour is real for European companies. Information from employees and other stakeholders is of great importance in order to prevent misconduct or to identify it at an early stage. The majority of the companies surveyed are aware of this and have already set up an internal whistleblowing system outside the chain of command.

The Whistleblowing Report provides findings about:

Misconduct: To what extent companies in Germany, France, Great Britain and Switzerland are affected by illegal and unethical actions and to what extent whistleblowing systems are used as a detection and prevention tool
Whistleblowing systems: How effective whistleblowing systems can be designed and communicated and the benefits companies derive from them
Impact of the coronavirus pandemic: What impact the coronavirus pandemic has on companies' internal reporting units
EU Whistleblower Protection Directive: How companies assess the implementation of the Directive and how well prepared they are for the entry into force

The contents and results of the study at a glance

Taking a closer look

Abuses occurred in a good third of the companies surveyed.

Prevention and discovery

More than 60 percent of the companies surveyed have a whistleblowing system.

Deciding

The vast majority of companies with a whistleblowing system are convinced of how useful and effective it is.

Design

On average, whistleblowers have two to three channels at their disposal for contacting the companies surveyed that have a whistleblowing system.

Usage

The analysed companies with a whistleblowing system received an average of 34 reports in 2020.

Benefits

Approximately one third of the companies investigated were able to uncover more than 80 percent of the total financial loss with the help of a whistleblowing system.

Impact of the coronavirus pandemic

Companies that dismiss employees or whose employees work from home have an increased risk of misconduct and receive more reports.

Approval of the content of the EU directive

The company representatives see the EU directive on the protection of whistleblowers as useful.

Status of preparations for the entry into force of the EU directive

Only a minority of the companies surveyed are fully prepared for the introduction of the directive.

The Whistleblowing Report 2021 for download

Download the Whistleblowing Report 2021 now for free and you will get:

Project partners

Cooperation partner

Previous Whistleblowing Reports

Here you can download the Whistleblowing Reports of the previous years free of charge.

Whistleblowing Report 2019

1392 companies, 4 countries, 1 topic: Whistleblowing systems in European companies

Download now

Whistleblowing Report 2018

Reporting points in Swiss companies

Download now

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EU Whistleblowing Directive – All you need to know right now

Angelina Dongauser — Mon, 04 Oct 2021 12:18:44 +0000

EU Whistleblowing Directive: All you need to know right now

On 16 December 2019, the EU Directive on the protection of whistleblowers entered into force. We will show you how you can implement the directive quickly and easily in your company.

Content of this white paper:

EU Whistleblowing Directive at a glance

Whistleblowers are vital for maintaining an open and transparent society, as they expose misconduct or hidden threats. To ensure that they are better protected against negative consequences, EU Directive 2019/1937 on the protection of whistleblowers came into force on 16 December 2019.

The goals of the EU Whistleblowing Directive are:

To detect and prevent misconduct and breaches of laws and regulations,
To improve law enforcement by establishing effective, confidential and secure reporting channels to effectively protect whistleblowers from fear of retaliation,
To protect and enable whistleblowers by helping them to raise concerns confidently without fear of retaliation, by ensuring anonymity.

Protective measures for whistleblowers are the focus of the EU Directive

The core feature of this directive is protection of whistleblowers. The essential points are:

Protection not only exists for employees who report their concerns, but also for job applicants, former employees, supporters of the whistleblower and journalists.
These persons are protected from dismissal, degradation and other forms of discrimination.
Protection applies only to reports of wrongdoing relating to EU law, such as tax fraud, money laundering or public procurement offences, product and road safety, environmental protection, public health and consumer and data protection.
The whistleblower can choose whether to report a concern internally within the company or directly to the competent supervisory authority. If nothing happens in response to such a report, or if the whistleblower has reason to believe that it is in the public interest, they can also go directly to the public. They are protected in both cases.

With these safeguards, the EU is sending a clear message to whistleblowers that they have nothing to fear while encouraging individuals to report on company infringements.

Who is affected by the directive?

Companies with more than 50 employees, public sector institutions, authorities as well as municipalities with 10,000 or more inhabitants are obliged to set up suitable internal reporting channels. Companies with 250 or more employees will be are expected to comply within two years of adoption, whereas companies with employees between 50 and 250 have another two years after transposition to comply.

Whistleblowers should be able to submit reports either in writing via an online system, a mailbox or by post and/or orally via a telephone hotline or answering machine system. Not only are employees who report wrongdoing are protected, but also job applicants, former employees, supporters of the whistleblower or journalists.

Whistleblower protection refers to the reporting of wrongdoing related to EU law, such as tax fraud, money laundering or offences related to public procurement, product and transport safety, environmental protection, public health and consumer and data protection.

However, the EU encourages national legislators to extend this scope also in into their respective national laws.

EU Directive obligations on businesses

Data Protection

All personal data, both that of the whistleblower and any accused persons, must be handled in accordance with the GDPR.

Responsibilities

Companies must determine the “most suitable” person to receive and follow up on reports internally. According to the EU, this could be a:

Compliance officer, Head of HR, Legal counsel, Chief Financial Officer (CFO), Executive board member or management

Companies can also outsource the processing of reports, for example to an external ombudsman.

Processing times

The company is obliged to confirm receipt of the report to the whistleblower within seven days. The whistleblower must be informed of any action taken within three months, the status of the internal investigation and its outcome.

Duty to inform

Companies are required to provide information on the internal reporting process as well as on the reporting channel(s) to the competent authority. This information must be easily understandable and accessible, not only to employees, but also to suppliers, service providers and business partners.

Data Storage

All reports received must be kept in a secure place so that they can be used as evidence, if necessary.

Exceptions

Companies with between 50 and 250 employees may use a shared reporting channel to obtain and identify evidence, provided that all obligations outlined are met.

Sanctions

The EU directive also includes details on sanctions. Companies that obstruct the reporting of concerns or attempt to obstruct them will face penalties. The same applies if companies fail to keep the identity of the whistleblower confidential. Retaliatory measures against whistleblowers will also be punished. It is the job of national legislators to determine the severity of these sanctions.

While the Directive clearly benefits whistleblowers we also believe there are significant benefits for organizations. Most importantly, by ensuring that effective whistleblowing arrangements are in place, employees and other stakeholders are encouraged to raise concerns internally.

By doing so, organizations have an opportunity to identify and manage risk at an early stage, helping to avoid or limit financial and reputational damage.

All information on the Directive including a checklist can be found in our white paper.

The following aspects must be taken into account:

Provide anonymity and information securiy

For all reporting channels, the identity of the whistleblower must be protected. All data must be handled in accordance with the GDPR.

Internal or public reporting channel?

If internal reporting channels should are not be implemented, it should be clear that whistleblowers will only be able to report to the public authorities or media according to the EU Whisleblower Directive - with incalculable risks for the organisations.

What happens after a report is filed?

Since all reports need to be documented, and follow up measures must be taken, each report needs to be easily accessible to compliance officers for the management of the next steps.

Duration of implementation

The duration of implementation depends on the size and complexity of the organisational structure. In general, this takes between a few weeks and a couple of months.

Next steps & tips

The Whistleblower Protection Directive entered into force on 16 December 2019. This marks the start of the two-year period during which EU member states must transpose the requirements into their own national legislation. First, companies with more than 250 employees must fulfill their obligations and two years later this will also apply to companies with 50 to 250 employees. Companies are advised not to wait until the last minute and to take action at an early stage.

The Whistleblowing Report 2021 shows that many companies have already proactively set up hotlines and received reports that have enabled them to better manage risk within their organisations.

Implement internal whistleblowing systems and set up processes

The freedom of choice aspect for whistleblowers is something companies need to note in particular. If the whistleblower cannot find suitable internal reporting channels, he or she can contact the relevant authority or even go public – the worst outcome for companies. It is therefore essential that suitable internal reporting channels are available and known about within the company.

To ensure that employees feel comfortable reporting internally, the channels should be available 24/7, offer anonymity, be available in the relevant languages, have comprehensible explanatory texts and be accompanied by an effective internal communication strategy.

FAQs

Which reporting channel is best suited to companies?

Since all reports must be documented and follow-up action taken, each report needs to be easily accessible to, compliance officers for the management of the next steps. Accordingly, a whistleblower system should be intuitive and easy to use.

Most importantly, the whistleblower must be confident that his or her identity is fully protected.

For this reason, digital whistleblowing systems that are proven to be secure and reliable are particularly recommended for small and large companies as well as public institutions. A data protection and IT security-certified system ensures that data cannot be accessed even by the provider. For reasons of data protection law, attention should also be paid to the location of the provider’s servers.

International companies should also ensure that reports can be submitted regardless of location and time in order to ensure that international employees have full access to the system.

How long does the implementation take?

Private and public organisations are well advised to implement a whistleblowing system at an early stage, as implementation can take between a few weeks and a couple of months, depending on the size and complexity of the organisational structure.

What happens after receiving a report?

The whistleblower should be informed within a reasonable period of time about the follow-up actions planned or taken and the reasons for choosing these.

The time requirements for action include:

§ the reference to other channels or procedures for reports that only concern the individual rights of the whistleblower,

§ the completion of the procedure due to lack of evidence or other reasons,

§ the initiation of internal investigations, possibly with an indication of the results and possible measures to remedy the problem, or

§ involve referral to a competent authority for further investigation insofar as this information does not affect internal research or the investigation and does not affect the rights of the person concerned by the report.“

The whistleblower should be kept informed of the progress and results of the investigation as it proceeds.

Will my staff need special training to handle and process reports?

Yes, based on the EU Whistleblower Directive, staff handling the reports on breaches should be specially trained and familiar with the applicable data protection regulations. These skills are necessary to process reports efficiently, to communicate with the whistleblower, even if they choose to remain anonymous, and to manage the appropriate follow-up actions.

Are loyalty and confidentiality clauses valid?

According to the Directive, it should not be possible to rely on the legal or contractual obligations of individuals, such as loyalty clauses in contracts or confidentiality or non-disclosure agreements, in order to exclude the possibility of reporting, to deny protection to whistleblowers, or to impose sanctions on them for reporting information on breaches:

§ to exclude the possibility of reporting,

§ to refuse whistleblowers protection

§ provide sanctions for reporting or disclosing information about violations when disclosure of the information covered by these clauses and agreements is necessary to uncover the violation.

If these conditions are met, whistleblowers should not be liable under civil, criminal or administrative law or in respect of their employment.

Does it matter how the information has been obtained?

The Directive states that whistleblowers who lawfully acquire or obtain access to the information on breaches should enjoy immunity from liability. If the relevant information has been acquired or obtained by committing a criminal offence, such as physical trespassing or hacking, the criminal liability should remain governed by the applicable national law.

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Whistleblowing programmes today and tomorrow: 19 key questions answered

Angelina Dongauser — Tue, 18 May 2021 10:16:01 +0000

Whistleblowing programmes today and tomorrow: 19 key questions answered

This white paper is a guide to some of the more recent developments around whistleblowing, including implementing best practices and meeting compliance obligations. It asks some of the questions most frequently raised by companies seeking to improve their whistleblowing programmes – to meet new requirements and also to deliver more business value.

Content of the white paper:

About this white paper

Today, many companies are recognising the value that a robust whistleblowing programme can deliver, when it is teamed with a “speak up” culture, in which employees feel empowered to raise issues. Boards and senior managers are recognising that it is far better for an employee to flag a challenge internally, where it can be resolved, then for the issue to erupt onto social media, newspaper headlines, or a regulator’s radar.

There are other benefits, as well. Whistleblowing information from employees can help reduce risk and prevent compliance breaches, ultimately contributing to better financial performance.

Governments and regulators are also recognising the value of whistleblowers, too, from a social perspective. For example, financial services regulators have strengthened whistleblowing requirements in the wake of the 2007-8 Financial Crisis, in the belief that whistleblowing could enable issues to emerge earlier, before they become such a threat to the soundness of the financial system. More broadly, the EU is putting in place a new Whistleblowing Directive, and the UK is considering updating its whistleblowing legislation as well.

In this white paper, we answer 19 key questions about whistleblowing and whistleblowing programmes.

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