Whistleblower. Everyday heroes.

The term whistleblower has been in the media quite a bit in recent years. We all know Howard Wilkinson, who revealed information about serious breaches of money laundering regulations at Danske Bank. Or Edward Snowden, who leaked information about US intelligence programs and worldwide mass surveillance to The Guardian. Or the story of the Chinese doctor Li Wenliang, who on December 30, 2019, warned colleagues about early COVID-19 cases. Three days later, Chinese police forced him to sign a statement of “illegal behavior.” He himself died of the disease on February 7, 2020, at the age of 33.

Many have a slightly ambivalent relationship with the term. Perhaps because whistleblowers often find themselves in a “legal or moral gray area” between confidentiality and loyalty on the one hand and responsibility according to freedom of expression and public interest on the other. In reality, whistleblower is a term that can rightly be attributed to a company’s most loyal and trusted employees. And with the right measures, this can act conscientiously and protect both the company's reputation and future earnings.

Experience has shown time and again that a whistleblower has sounded the alarm before things have gone completely off the rails. If an organization ignores such warnings, it can have serious consequences. Every responsible management must therefore ensure that a whistleblower system is established and a culture is fostered that appreciates reports from employees, suppliers and other stakeholders.

What is a whistleblower scheme?

A whistleblower scheme requires a combination of policies and guidelines linked to a whistleblower portal. This should ensure the best opportunities to detect errors, problematic workflows, questionable behavior or outright criminal activity – before it is too late.

At best, a whistleblower scheme is a proactive measure that shows the outside world that a reliable and responsibly managed company is willing to look into its own affairs. Internally, a whistleblower scheme gives employees the certainty that their individual or collective concerns are taken seriously and valued.

It may seem like a relatively simple measure, but when the time comes, it is an advantage, if not a necessity, that the scheme includes an ombudsman function, to ensure that the whistleblower’s identity and interests are handled properly.

Why is a whistleblower scheme important?

Due diligence can be the decisive difference between lost earnings or reputation and an effective course correction. A whistleblower scheme provides an anonymous response option for the company's employees, suppliers and/or other stakeholders, who can thus help to detect and report errors, questionable behavior, failures and/or illegal actions in the company or in relation to it. This can be, for example, suspicion or confirmed suspicion of corruption, fraud, bribery, money laundering, deliberate misinvoicing, problematic working environment or violations of laws in connection with personal data handling, tax, environment, etc. For public bodies, it can also include matters such as intentional misleading of citizens, neglect, social fraud, etc.

A whistleblower scheme can thus help to protect the organization's reputation, prevent potential conflicts and strengthen its ability to detect errors, questionable behavior, illegalities and conflicts and to exercise due diligence in corrective action.

“It is time for everyone, from citizens to heads of government to business leaders, to recognize the importance of whistleblowers for the good of society, and make sure they are protected. This often means a change in the law, but also in the culture of governments, businesses and all organizations.”

Delia Ferreira Rubio
Chair, Transparency International

Choosing the Right Whistleblower Scheme

Choosing a whistleblower scheme is more than a policy decision – it’s a step toward integrity. It’s a commitment to truth, transparency, and trust. The right system empowers voices, protects the vulnerable, and builds a culture of tolerance where ethics aren't just preached, but practiced.

Look for a scheme that guarantees confidentiality, shields against retaliation, and provides a clear, accessible reporting path. Whether it's internal or third-party, make sure it’s a robust digital solution which will ensure people feel safe, heard, and respected.

Integrity thrives where courage is met with support. Choose a scheme that reflects your values and inspires a workplace where doing the right thing becomes the norm. Look for a whistleblower scheme that offers:

• Confidentiality & Anonymity: Ensures that whistleblowers can report concerns without fear of exposure or identification, fostering trust in the process.
• Protection Against Retaliation: Provides clear safeguards for individuals who come forward, including legal and organizational measures to prevent punishment or discrimination.
• Accessible and user-friendly reporting: Offer a simple, inclusive and reliable way to report – preferably via an ombudsman function – accessible to all employees and stakeholders.
• Independent & Fair Investigation Process: Ensures reports are taken seriously, assessed impartially, and followed up with appropriate action, free from conflicts of interest.

Should our company have a whistleblower scheme?

For a number of companies, multinationals and public authorities, the answer is yes. For certain industries, it is already a legal requirement today. This applies, for example, to supervised financial companies with more than 5 employees, and this will be the case for many more this year.

The EU Whistleblower Directive, which will be implemented across all the EU countries in December 2021, means that companies with 50 employees or more, as well as municipalities with more than 10,000 citizens, are obliged to offer their employees, citizens and other stakeholders a safe and anonymous channel for whistleblowing.

The question remains which whistleblower scheme to choose. A cautious offer could be one of the strongest and most competitive on the market – LES Whistleblower Platform.