How to encourage whistleblowing
| DOI | https://doi.org/10.1108/eb025053 |
| Pages | 326-332 |
| Date | 01 April 2000 |
| Published date | 01 April 2000 |
| Author | David Crook |
| Subject Matter | Accounting & finance |
How to encourage whistleblowing
David Crook
Received: 22nd August, 2000
Expolink Europe Limited, Unit 9, Castle Combe Enterprise Centre, Upper Castle Combe,
Chippenham SN14 7QE; tel: +44 (0)1249 784100; fax: +44 (0)1249
782121;
e-mail: david@expolink.co.uk
Journal of Financial Regulation and Compliance Volume 8 Number 4
David Crook graduated from London
Uni-
versity, and has spent most of his working
life in the service industries and between
1992 and 1998 he built up a company
employing some 280
staff.
This company
was sold to a quoted plc in January 1998
enabling him to concentrate on developing
Expolink Europe Limited.
David is now firmly established as one
of the UK's leading authorities on setting
up communication systems to help prevent
and detect fraud and other malpractices
within the workplace. His company, Expo-
link Europe Limited, is the UK's leading
supplier of an external whistleblowing
hot-
line service and has a track record of
effective, secure call management and
reporting services. Its current client base
consists of many companies in the FTSE
250 index together with local authorities.
ABSTRACT
This paper, derived from a
conference
presenta-
tion,
discusses corporate
fraud and the role that
'whistleblowing' can play in combating mal-
practice. It examines why employees have been
reluctant to 'blow the whistle' and goes on to
suggest how employers can provide alternative
ways for staff to raise their concerns. It con-
cludes by looking at the impact of
the
'whistle-
blower protection' offered by the Public Interest
Disclosure Act 1999.
INTRODUCTION
What is whistleblowing? For employers,
whistleblowing is generally understood to
be an act where an employee expresses a
concern relating to a fraud, or other illegal
or unethical conduct, outside the organisa-
tion because, for various reasons, they do
not feel able to raise the matter internally.
For most employees, whistleblowing is
when an employee reports anything,
whether internally or externally.
The word whistleblowing carries with it
some very negative associations and
anyone who does blow the whistle is seen
as a sneak, a grass, a rat and all manner of
other names. Children are told by their
parents not to rat on their brothers or sis-
ters,
at school they are told not to rat on
their classmates and at work it is not done
to rat on workmates.
Because of this culture, whistleblowing
in business is often denounced as morally
unjustifiable, on the grounds that it vio-
lates the duty of loyalty and confidential-
ity to the business and fellow workers.
As a result, many employers still view
whistleblowers with suspicion, not as the
loyal bearers of critical information which
they often are. Rather than actively
encouraging employees to sound the
alarm, many companies create a culture
and procedures which actually deter
employees from blowing the whistle.
This is often because companies fear
uncontrolled whistleblowing. Encouraging
controlled whistleblowing is, however,
good business practice. After all, would
not most companies welcome the oppor-
tunity to look into a matter rather than
Journal of Financial Regulation
and Compliance, Vol. 8. No. 4,
2000,
pp. 326-332
© Henry Stewart Publications,
1353-1988
Page 326
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