Meet Jane, she works in the finance department and noticed some irregularities in her team. Her concern prompted her to report these irregularities to her company. Her courage led to a thorough investigation, saving the company from a financial scandal. Jane’s actions highlight the importance of whistleblowing in promoting transparency and accountability.
What is whistleblowing?
Whistleblowing is an act of reporting wrongdoing, corruption or any unethical behaviour within an organisation. A study by the PwC found that whistleblowers were responsible for 43% of the fraud detection. Comparatively, law enforcement officers were only responsible for 3% of the fraud detection and corporate controls were responsible for 34% of the detection.
Having a well defined whistleblowing mechanism can go a long way in protecting your organisation’s reputation.
What are the benefits of whistleblowing?
- Prevent financial losses: Whistleblowing can help identify financial misconduct like fraud, embezzlement or accounting errors at an early stage. By exposing these issues quickly organisations can take immediate action to prevent substantial financial losses.
- Promote a culture of transparency: When employees or other stakeholders feel comfortable reporting unethical or illegal activities without any fear of retaliation, it fosters a culture of openness and accountability which will in turn help in better decision making.
- Promote employee’s and stakeholder’s wellbeing: Whistleblowing ensures that employees and stakeholders are protected from unethical practices that may harm them. By providing a safe channel of redressal mechanism, organisations can demonstrate their commitment to ethical work practices.
- Enhance corporate reputation: Organisations that support whistleblowing are seen as more trustworthy and responsible. They signal to both customers and investors that they take ethical practices seriously, which can improve their reputation in the marketplace and enhance long-term business success.
What is the redressal mechanism process?
A well-defined redressal mechanism is essential to ensure that the whistleblower complaints are addressed effectively. Some of its key characteristics should include:
- Review to determine the next course of action.
- Investigation of the complaint, including gathering evidence and speaking to the witnesses
- Findings and recommendations to be presented to the management/board of directors.
- Corrective actions to be taken and follow ups to be made to ensure that the issue is fully resolved.
How can Serein help you?
At Serein we help our partner organisations establish a robust whistleblower mechanism. Here’s how we can help your team:
- Policy drafting : Serein’s experts create customised and comprehensive whistleblower policies that align with necessary legal requirements and best practices. These policies define the process for reporting unethical practices and help protect the whistleblowers.
- Policy reviewing: Serein’s legal experts also review existing whistleblower policies to ensure they are up to date with current laws, regulations and changing organisational needs. By reviewing these policies, we ensure they comply with industry standards and are adaptable to future challenges.
- Training: We offer specialised training programs for employees, management and designated whistleblower officers. Our training helps raise awareness about identifying and reporting misconduct, responding to whistleblower reports, and the importance of a whistleblowing culture. The training ensures that everyone in the organisation understands their roles and responsibilities in maintaining an ethical and transparent environment.
- Investigation: Serein provides investigative services to thoroughly and confidentially address the concerns raised through whistleblowing reports. Our experts help conduct impartial investigations, gathering facts and evidence, interviewing relevant parties and providing clear, actionable findings. This ensures that all reported issues are properly addressed in a fair and unbiased manner.
Contact Serein today at hello@serein.in to know more about our highly customised whistleblowing services.