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Whistleblowing: Employees
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KPMG’s service – Ethics Line – is an independent 24-hour whistleblowing hotline which enables employees to raise genuine concerns about possible fraudulent or improper conduct in confidence, allowing their organisation to take prompt and effective action. This service has been successfully operated by KPMG in other jurisdictions for a number of years. It is now being offered to UK companies.
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Still, even if there is growing evidence that whistleblowing systems can be successfully implemented outside the United States, the notion of Western European resistance has not yet been put completely to rest. Within the last year, it gained currency not due to employee disuse but from governmental opposition to U.S.-style company hotlines in France and Germany. In May and June 2005 the French data protection authority Commission nationale de l’informatique et des libertés (CNIL) and the German Labor Court invalidated certain hotlines established by U.S. multinationals pursuant to the Sarbanes-Oxley Act (2002) and other compliance standards such as the Organizational Sentencing Guidelines.
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A professional whistleblowing system is a system implemented by a private or public organisation, encouraging its employees to report issues that can affect its business or involve its responsibility in a serious manner. It does not supersede other existing information reporting channels (to managers, personnel representatives, account auditors, public authorities …) that are not covered by the CNIL’s guidance ; it is complementary thereto.
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Top management, starting with the CEO, should demonstrate a strong commitment to encouraging whistleblowing. This message must be communicated by line managers at all levels, who are trained continuously in creating an open-door policy regarding employee complaints.
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The Public Service Commissioner's Direction 2.5, which relates to the APS having the highest ethical standards (s10(1)(d)), reinforces the requirement for Agency Heads to ensure that procedures are in place to manage whistleblowing disclosures. The direction ... requires Agency Heads to put in place measures to ensure that APS employees are aware of the procedures and are encouraged to make appropriate disclosures.
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An employee considering whistleblowing must ask himself or herself these questions: How much harm has been done or might be done to victims? Will the victims really be "beneficiaries"? If one person is or will be harmed, it is unlikely to be a situation that warrants whistleblowing.
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