Whistleblowing System In Compliance: Why It Matters and How to Achieve It

Yulia Landbo

Yulia Landbo

Last updated: Jun 16, 2024 3 min read

A whistleblowing compliance culture serves as the bedrock that shapes employee behavior and influences decision-making, playing a crucial role in the success or failure of a business. This is why the whistleblowing compliance system is no longer a mere checkbox exercise, but rather a key component of a resilient and ethically-driven organization. 

This blog post delves into the importance of a whistleblowing compliance system and explores the key factors that contribute to an efficient and compliant whistleblowing process.

What is Whistleblowing  Compliance System?

A whistleblowing compliance system represents an organization's adherence to laws, regulations, and best practices related to setting up and maintaining a whistleblowing system. 

In the business environment, it is imperative that all individuals, from entry-level employees to top management and external stakeholders, acknowledge, understand and appreciate the significance of internal guidelines and fundamental ethical principles guiding the whistleblowing process within the organization.

The Importance of Whistleblowing System for Compliance

Legal and regulatory requirements for a whistleblowing compliance system aim to protect people who report unethical, illegal, or improper conduct. These requirements serve as the foundation for establishing effective whistleblowing systems that help prevent damage and detect threats that may otherwise remain hidden.

In the European Union, the EU Whistleblower Protection Directive (Directive 2019/1937) came into effect in December 2021, setting minimum standards for whistleblowing systems across all member states. It requires all businesses and public entities with 50+ employees to implement internal reporting channels, protect whistleblowers from retaliation, ensure prompt investigations, and follow up on the reports.    

Apart from the EU Directive, organizations must also consider other regional or local relevant laws and industry-specific regulations when designing and implementing whistleblowing systems. For example, in the EU, all data, including one related to whistleblowing, must be managed in compliance with the General Data Protection Regulation (GDPR). Ensuring data privacy is vital, particularly when sensitive information is shared through a whistleblowing channel. Consequently, it is imperative that whistleblowing procedures take into account the mandates of both GDPR and any other applicable data privacy regulations and standards. Another example is ISO 37002 Whistleblowing Standard, the internationally recognized standard for organizational whistleblowing systems.

Compliance with whistleblowing regulations offers significant benefits for organizations, such as:

Key Elements of a Compliant Whistleblowing Program

To ensure its effectiveness and adherence to regulatory requirements, the whistleblowing compliance system entails several key elements, such as:

Achieving  Compliance with a Whistleblowing System

Achieving whistleblowing compliance involves several key steps that organizations should follow. These steps include:

Developing and promoting a strong whistleblowing compliance culture is a vital component that requires consistent efforts. Don't wait any longer – take action now to prioritize whistleblowing system compliance in your organization. Have a tour or book a demo to see how our whistleblowing system can ensure full compliance in your company. 

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