Is your organization’s whistleblower hotline rarely used? Before assuming all is well, consider an alternative cause… is low report volume the result of your organization reaching the epitome of ethics, or is it a symptom of a workplace where people are afraid to speak up?
In reality, no matter how hard an organization strives to be ethical, concerns are bound to arise. What is more important (and realistic) than having a perfect organization is providing a secure and timely way for concerns to be reported and addressed. The problem is that while many organizations provide a channel for reporting concerns, these channels are often underutilized due to distrust in the process. According to “Keeping Your Whistleblower Hotline Alive,” by Ron Kral, shared by Corporate Compliance Insights, “If tipsters don’t feel that the organization offers a safe place to raise concerns, they may forego reporting the potential fraud or seek alternatives to reporting the fraud internally, such as reporting the fraud to a federal government whistleblower program that provides monetary incentives.”
One of the biggest causes of distrust in a whistleblower hotline is the fear of retaliation. Potential whistleblowers may not trust that their organization’s hotline is truly anonymous or they may fear that the information they provide will give away their identity. With this said, how can organizations help employees understand their protections as potential whistleblowers, thus promoting the use of their hotline?
Transparency
Be as open as possible about the reporting and investigation process. According to Fraud Magazine’s “Top 10 Factors Leading to Hotline Distrust,” by Ryan C. Hubbs and Julia B. Kniesche, “The more information an organization can share about the program to increase transparency, the more likely an employee might be to come forward.” The article states, “An organization should continually strive to help employees know how the hotline-reporting program works, why the organization believes in it, who operates it and why it’s a critical part of the compliance culture.” As an organization that uses Red Flag Reporting, you should share the following policies and protections:
Privacy: Red Flag Reporting does not have access to a user’s IP address. Calls are never recorded, and Red Flag Reporting does not track of phone numbers and caller information.
Third Party Provider: Red Flag Reporting is a third-party hotline. Regardless of how you file a report, you are not communicating directly with your organization’s management unless you explicitly choose to do so.
Anonymity: As a reporter, you can choose your level of anonymity:
- Fully anonymous: Your identity will remain unknown to both your organization and Red Flag Reporting.
- Anonymous to your organization: Your identity will remain unknown to your organization, but you will provide personally identifiable information to Red Flag Reporting to facilitate ongoing communications. You also have the option to remain anonymous to Red Flag Reporting while still being able to communicate with your organization.
- Not anonymous: You can choose to reveal your identity if you wish to be known and contacted by your organization’s internal investigators.
Commitment to Ethics: Red Flag Reporting explicitly prohibits clients from requesting the identification of a whistleblower. The only circumstance in which Red Flag Reporting would share personally identifiable information is if legally obligated to do so by law enforcement. For perspective, Red Flag Reporting has never received such a request. Additionally, if you choose full anonymity, you are truly anonymous – Red Flag Reporting will have no identifiers about you.
Anti-Retaliation Measures
While the above information is reassuring, it is likely that some potential whistleblowers will still fear retaliation. Implementing a robust anti-retribution policy is essential for fostering a culture of trust and openness within an organization. Such a policy reassures employees that their concerns will be taken seriously and that they will be protected from any negative consequences for speaking up. This not only encourages more employees to report unethical behavior but also helps to identify and address issues promptly, maintaining the integrity and ethical standards of the organization. By clearly communicating and enforcing anti-retribution measures, organizations demonstrate their commitment to ethical practices and support for employees who act in the best interest of the company.
Encouraging whistleblowing is crucial for maintaining an ethical workplace. When employees feel confident that their concerns will be heard and addressed without fear of retaliation, they are more likely to report unethical behavior. By promoting transparency in the reporting process and ensuring robust protections for whistleblowers, organizations can build a culture of trust and accountability. This not only helps in identifying and resolving issues promptly but also reinforces the organization’s commitment to ethical practices. Ultimately, a well-utilized whistleblower hotline is a testament to an organization’s dedication to integrity and the well-being of its employees.