Whistleblower Activity
Question: What are the best practices for addressing whistleblower activity and whistleblower protection?
Answer: Any company should establish an effectively functioning mechanism, allowing its employees, or other persons it retains, to submit, on a confidential and anonymous basis, their concerns regarding compliance with internal policies and applicable regulations, for example, instances of questionable accounting or auditing matters, bribery or improper payments, or violations of a company’s Code of Ethics.
Companies should design and implement internal reporting channels to handle incoming reports and ensure appropriate follow-up. The reporting channels should allow for reports to be orally or in writing, including an option for anonymous reporting. The reporting channels should also ensure that the identity of the reporter and parties included in the report is protected.
The company then needs to provide for a diligent follow-up on the report by a designated person (taking into account any potential conflicts of interest). The follow-up should encompass appropriate review, response and remediation of the complaints received. The company also needs to make sure that employees are not retaliated against for making complaints.
As in any other area of compliance, a top-down culture of support for the whistleblowing function is important. This should include an appropriate oversight of the whistleblowing function by senior management, auditors and the Board of Directors.
*The contents of this message, current at the date of publication, are for reference and general informational purposes only and do not constitute legal advice. You should contact your attorney to obtain advice with respect to any particular legal matter. You should not act or refrain from acting on the basis of information in this publication without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.
Question: What are the best practices for addressing whistleblower activity and whistleblower protection?
Answer: Any company should establish an effectively functioning mechanism, allowing its employees, or other persons it retains, to submit, on a confidential and anonymous basis, their concerns regarding compliance with internal policies and applicable regulations, for example, instances of questionable accounting or auditing matters, bribery or improper payments, or violations of a company’s Code of Ethics.
Companies should design and implement internal reporting channels to handle incoming reports and ensure appropriate follow-up. The reporting channels should allow for reports to be orally or in writing, including an option for anonymous reporting. The reporting channels should also ensure that the identity of the reporter and parties included in the report is protected.
The company then needs to provide for a diligent follow-up on the report by a designated person (taking into account any potential conflicts of interest). The follow-up should encompass appropriate review, response and remediation of the complaints received. The company also needs to make sure that employees are not retaliated against for making complaints.
As in any other area of compliance, a top-down culture of support for the whistleblowing function is important. This should include an appropriate oversight of the whistleblowing function by senior management, auditors and the Board of Directors.
*The contents of this message, current at the date of publication, are for reference and general informational purposes only and do not constitute legal advice. You should contact your attorney to obtain advice with respect to any particular legal matter. You should not act or refrain from acting on the basis of information in this publication without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.
