The year 2016 has seen a spate of headlines featuring whistleblowers, such as the heart surgeon who was vilified by health chiefs after he exposed shocking NHS failings. Raj Mattu was, of course, sacked for unveiling such information and hes not the only one. A plethora of doctors, it seems, have been fired for exposing other care scandals.
Similarly, now-former Google whistleblower Barney Jones, who gave 100,000 emails to HMRC proving the tech giant does business in the UK and was thus cheating the taxpayer out of 200m a year, was featured in the news as of late for saying heads should roll at HMRC for agreeing to a 130m sweetheart deal with the company.
However, in an interview with The Guardian, Jones suggested he had no regrets on his actions even though speaking out on Google’s tax affairs may have damaged his career. He said: “Many have pointed out to me that by taking a stand on this I haven’t made myself massively popular. My employment prospects for the future have been affected. Certainly a lot of companies that have a European HQ in Dublin are unlikely to be top of my list of future potential employers. But that’s OK.
Read more articles about whistleblowing:
- Time’s up! How to blow the whistle on wrongdoers in the workplace
- Don’t shoot the messenger: How to build a whistleblowing system
- Top tips on whistleblowing
For some time, however, it has been felt that legislation needed to be reformed as it failed to address properly the issue it was introduced to deal with to encourage workers to speak out against malpractice and wrongdoing in the workplace without fear of reprisal. As such, the law is changing to give whistleblowers more protection, with September 2016 seeing a package of new rules put into place by the Financial Conduct Authority (FCA).
We work now in a business environment where the government cannot afford to spend vast sums on business regulation and investigation. Corporate governance, self-regulation and self-reporting is the new black in terms of instilling a business culture that will attract foreign investment and promote financial stability. In this respect, whistleblowing represents the front line when it comes to the detection of malpractice and fraud. In fact, whistleblowing could bring about some much needed change in corporate governance.
This was evident when Sherron Watkins blew the whistle on Enrons management in the US and when Harry Templeton challenged Robert Maxwells prowling of the pension fund, better known as the Maxwell Saga in the UK. Our society has become so entrenched in doing wrong that corruption has become an inherent part of society. This issue should be tackled by adopting best approach, which encourages and requires businesses to set up channels for blowing the whistle.
Read more about creating a “speak up” culture.
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But in order to bring about such change, we need to tackle the concerns that still remain a challenge for firms in terms of whistleblowing. Cases continue to appear where those who have spoken up have suffered, as exemplified by Robert Francis Freedom to speak up” review into the NHS.
The terms whistleblowing and speak up are often used interchangeably. In a corporate context, it all comes down to encouraging employees to voice their concerns without fear of retaliation. In the end, an open culture where employees have the confidence to speak up will allow a business to operate with high ethical standards and avoid integrity risks.
And with developments in the internet and social networking sites, it is now easier than ever for employees to make their concerns public. Most bosses may have been, or will be, the victim of a fraud or theft at the hands of their own employees; but a mechanism for employees to speak up could help prevent such misconduct. Furthermore, the value of whistleblowing is recognised, with the Association of Certified Fraud Examiners reporting that it is one of the most effective ways to uncover fraud.
Recent whistleblowing cases have shown that this is something bosses should try implementing right now if they arent already. Whistleblowing functions act as a safety valve in the best corporate governance frameworks, which are comparable to an adequate procedures framework as envisaged by the UK Bribery Act.
To facilitate this, it is essential that whistleblowing policies and procedures are communicated to all staff, and that questions about them are asked in staff engagement surveys to help understand and dispel any concerns that staff may have. In addition, firms need a clear understanding of what to do when a whistleblowing call comes through.
All in all, the practice of whistleblowing has the potential to bring about a great change in businesses both in terms of governance and culture as long as someone doesnt have their finger over the air intake.
