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Whistleblowing: The Power of Technology and Trust in Building Ethical Cultures by Sarah Vidgen, Chief People Officer

2 min read Whistleblowing: The Power of Technology and Trust in Building Ethical Cultures by Sarah Vidgen, Chief People Officer

The EU Whistleblower Directive regulates that every EU company with more than 50 employees must have a mechanism that allows staff to safely report any kind of concerns, incidents or suspicions they have or have observed. UK Companies are required to protect ‘whistleblowers’ in a similar manner under the Public Interest Disclosure Act 1998.

Anonymity and/or confidentiality are key to making sure that your employees feel able, and safe, when raising such concerns – but there is a worrying gap in many information systems which exposes employees to unreasonable levels of risk. Or at least the fear that reporting will.

As a quick starter for ten – it is important to differentiate between confidential and anonymous.  And why it matters.

Anonymous whistleblowing is the reporting of any possible wrongdoings to an employer or an external body or individual without disclosing any personal information allowing individuals to remain completely anonymous. Some companies feel uncomfortable with total anonymity, in a world where we are asked to be accountable there is the feeling that it reduces the ability of the organisation to follow-up and investigate the enquiry fully. This concern isn’t entirely accurate, but it remains very real – an aspect of “putting your money where your mouth is”.

Protected confidential reporting allows for more contact while still offering a high level of protection to the individual. It does require that organisations develop robust technical and people-based processes that offer this protection, but by filing a full confidential report an individual is fully covered by Whistleblowing Protection Legislation.

Protection by law is one thing – but the concern remains among employees that organisations will identify who they are, and that they will gain a reputation for troublemaking or suffer unpleasant consequences for blowing the whistle.  So, while a lot of what we will talk about today is about how we can use technology to protect the individual, organisations must start with creating a culture where reporting is considered beneficial and not damaging or highly bureaucratic. It starts there, and without that there isn’t a software solution available that will result in effective and valuable whistleblowing culture.

This is important because when unethical behaviour goes unchecked, employees can feel disillusioned and lose trust in their organisation. When misconduct is ignored or covered up, employees feel that there is a lack of accountability within the organisation, in turn leading to a sense of injustice. On top of that employees may lose confidence in leadership and the company’s commitment to ethical values, causing a decline in trust. As any senior leader knows – we should worry when our people go quiet.

As with so many things, technology offers a solution that can promote the culture – but not replace it. It addresses concerns about retaliation as well as ensuring transparency, accountability, and ethical conduct within the organisation.

  • Confidential Reporting:Whistleblowing software provides a secure channel for employees to report concerns anonymously or confidentially. This protects whistleblowers from retaliation, enabling them to speak up without fear.
  • Swift Investigations:Reports made through whistleblowing software can be investigated at speed, sending a clear message that unethical behaviour will not be tolerated. Swift responses demonstrate accountability and a commitment to addressing concerns.
  • Non-Retaliation Policies:Organisations that implement whistleblowing software often have strict non-retaliation policies in place and the software is a visible demonstration of that. Put simply it goes beyond a soundbite and shows they’re serious.
  • Transparency:Whistleblowing software fosters transparency by ensuring that reported concerns are taken seriously and addressed appropriately. This transparency rebuilds trust by showing employees that their voices matter and allows them to understand (and see) the process that supports the positive culture.
  • Legal and Ethical Compliance:Whistleblowing software also helps organisations stay compliant with legal and regulatory requirements. This compliance enhances the organisation’s reputation and demonstrates a commitment to ethical conduct, creating the perfect virtuous circle.

Robust whistleblowing software (married with a culture that welcomes disclosure and treats it as an opportunity for positive change, not personal attack) can lead to a cultural shift within the organisation. It encourages a proactive approach to identifying and addressing wrongdoing, rather than attempting to hide it. This in turn drives accountability and ownership across the organisation, where employees feel empowered and responsible for maintaining high standards and values.

With a leadership culture that makes mindful decisions and understands that the organisation values integrity over shortcuts you are choosing a culture of psychological safety for employees, enabling opportunities to speak up and improve their working environment, taking whistleblowing beyond a tick box policy and embracing the change that comes. As we all know – open windows let in fresh air.