Whistleblowing

Have you ever heard of whistleblowing? This practice deals with the procedure that seeks to report infractions, irregularities and incorrect behavior within companies (corruption, sexual harassment or any type of discrimination).

Surely you're familiar with moves like “Me Too” or scandals like Facebook's personal data breaches. One or more whistleblowers risk their reputation and physical integrity to report irregular situations or violations of current legislation in companies.

Do you want to know more about whistleblowing? , Keep reading!

What is whistleblowing?

When we talk about whistleblowing, we are not literally referring to a “whistle blowing” as its translation would be, but rather to the internal complaint filed by a person (usually an employee) for a committed (or illegal) breach on the part of the company. However, it is not only for employees, but also for managers, suppliers, shareholders..., even former employees, who are aware of a legal breach or malpractice on the part of the company.

On the other hand, it is necessary to know that reporting irregularities is not the same as filing a complaint in the workplace. A complaint is a matter of personal interest and has no impact on the general public, while a complaint of irregularities refers to more serious and generalized concerns, as indicated above.

Objectives sought by the complaints channel

Beyond labor complaints, the anonymous complaints mailbox or channel seeks to fulfill a series of direct and indirect objectives.

• Detect and prevent illegal activities that could harm the company.

• Improve internal control measures to reduce the risk of engaging in malpractices or misconduct.

• Exempt or lessen the company's criminal liability.

• Encourage the proper functioning of the disciplinary system, which will punish the perpetrators of the violations that are detected.

• Contribute to the collaboration of judicial investigations if a legal proceeding involving the company is carried out.

Is the reporting channel mandatory?

The reporting channel is only mandatory for companies and organizations with 50 or more workers. This provision is included in the EU Directive 2019/1937, which is intended to protect whistleblowers of criminal acts and which is pending transposition in Spain.

In addition, companies that want to be certified in the UNE/ISO standards related to compliance (UNE 19601, UNE- ISO 37001, ISO 37002...) will need an anonymous reporting box. It is also needed by companies that are required to establish preventive measures against money laundering and the financing of terrorist activities.

If you wanted to implement a criminal compliance program, it would be mandatory to have a complaints channel. Another example of companies that should have it are those dedicated to sports, leisure or training if they serve minors.

How to set it up in your company

InAmong the measures to be implemented we must have these 7 Take into account:

• Have channels that facilitate complaints in different formats (oral, written, via telephone, etc.).
• Preserve the identity of the complainant, ensuring data protection. Not anonymity, not valid, but rather guaranteeing compliance with the LOPDGDD (Organic Law 3/2018 on the Protection of Personal Data and Guarantee of Digital Rights).
• An acknowledgment of receipt must be submitted within a maximum period of seven calendar days.
• Have an impartial person or department responsible for processing these complaints received, maintaining communication with the complainant and providing the necessary help and information for their diligent processing.
• All complaints must be handled fairly and diligently, as long as they meet the established requirements.
• Establish a reasonable maximum period for responding to the complaint of 3 months, which will start counting from the time the acknowledgment of receipt was sent.
• Clear and easily accessible information on external reporting procedures to competent authorities. Negotiate these channels or channels to formalize complaints, always complying with national regulations.

It is important to leave the procedure for processing the complaint well defined in companies, and those responsible must have training in data protection and act under the principles of integrity, legality and respecting the company's code of ethics, as well as the safeguarding of communication channels and the confidentiality of possible documentation generated during the investigation and subsequent archiving of the company.

The confidentiality of reporting channels

We start from the fact that it is something mandatory and not optional, that is, we are faced with a mandatory rule, based on European legislation.

Even though it is initially intended for companies in the public and private sectors (when they exceed 50 employees), the Directive also contemplates the possibility that member States may request legal entities with fewer employees to establish them.

The confidentiality of channels is already implicit in the Directive itself, in which it requires guaranteeing such confidentiality whether it is through an internal channel or, if it is communicated directly to the competent external authorities, and also to protect against the retaliation contemplated by the regulation itself. And it specifies that the identity of the complainant will not be revealed without his consent to third parties, except those authorized to receive and process complaints. Nor may you provide data from which your identity can be deduced in any way, either directly or indirectly.

However, it also emphasizes the need to punish the filing of false complaints (being aware of this), and that measures be established to guarantee compensation for damages that may result from such complaints.

Benefits of Whistleblowing

Do not think that reporting channel software is a way to give a tip to a labor inspectorate, as it offers a wide variety of advantages. The most important is that the company cares about its reputation. A mismanagement of an irregularity or its ignorance can end up reaching the public, causing damage to the image that will be difficult to repair in the short term.

It helps to reduce criminal risks, which is possible by detecting any wrongful conduct at an early stage. In addition, there is a database of complaints on which to act, since the company has evidence of the offence committed.

On the other hand, the complaints channel reinforces the trust of employees, who, thanks to anonymity, will inform authorized personnel of possible legal violations. However, we must be careful with any evidence of false reporting, which would detract from the effectiveness and value of the reporting channel.

Having reporting channel software for companies is one way to boost the implementation of regulatory compliance programs. Its function is to detect and clarify possible legal risks for the company, which is achieved through ethical practices and actions.