Whistleblower actions and protection are extended to go beyond stock listed companies
Issues related to whistleblowers can differ from the various acts like the US Dodd-Frank Act, FCPA and the UK Bribery Act; however all of these legislation require that companies doing business in the UK to be in compliance to whistleblower actions and procedures.
Whistleblowing is a disclosure by a person, usually an employee in a government agency or private enterprise, to the public or to those in authority, of mismanagement, corruption, illegality, or some other wrongdoing.
Whistleblower on the other hand is a person, often an employee or third party or a company official or other member of Company staff who is;
- Under a statutory obligation to come forward with the information related to the possible illegal activity, including fraud or corruption
- The information given is detrimental to the interests of the Company
- Serious failure to comply with professional obligations of officials of the Company that she/he has discovered in the course of or in connection with their duties.
As long as she/he complies with the rules, she/he is protected from adverse consequences. In reality this can often be an issue for the whistleblower.
Adequate procedures
Under the UK Bribery Act, whistleblowers cannot receive financial rewards being a messenger. The UK lawmakers feel that the Anglo-Saxon culture would rather appeal to the conscience, could be subject to misuse. Financial rewards could also undermine reporting of dubious activities and may not be in harmony with the code-of-conduct ethics and compliance program.
However, there is an opening in relation to a company having adequate procedures under section 7 of the Act, which serves as a complete defense to a charge. This requires that the company is fully compliance with the oversight expectation of “adequate procedures”. Until now, this protection only applied to publicly traded companies. Private companies are now vulnerable to a wave of employment litigation.
Recently the Supreme Court has issued ground-breaking ruling
Even if you're a private company, there are several critical steps to take now to protect your organization your organization against time consuming and expensive litigation:
- Understand the effect of a recent ruling has on your company in the geographies where you sell or operate.
- Attend the annual Copenhagen Compliance Conferences to summarise the key facts and actions for your company. Sponsors and supporters can address specific issues without costs.
- Assess your global anti-retaliation compliance program with a primary focus on key areas.
- Assess the need for an adequate employee hotline
- Assess the need for a robust case management system to resolve reports
- Do you provide adequate ongoing training and/or e-learning for all employees on workplace ethics, integrity, controls and retaliation?
- When was the last time all GRC and specifically anti-retaliation policy assessed and reviews?
