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Employers should be urged to reward whistleblowing staff, argues employment law professor

David Woods , 23 Apr 2012

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Rewards for whistleblowing and a change in work culture are vital if damaging public disclosures of information are to be avoided, according to one of the UK’s most prominent employment law professors.

Speaking a Middlesex University public debate, professor of employment law, David Lewis argued employees need to know that they will be rewarded rather than be penalised if they speak out against wrongdoing such as bribery, fraud and other forms of malpractice.

Lewis went as far as saying that he would "welcome criminal charges against companies that victimised whistleblowers" to send a clear signal to others that intimidation and retaliation would not be tolerated.

Lewis spoke alongside Wendy Addison, an accountant who brought to light the fraudulent operations at South African company LeisureNet, who told of her 11 year battle to see justice despite threats against her life both in South Africa and even after she moved to the UK. Lewis said: "Employees need to understand that reporting wrongdoing in their company will not result in the loss of their job and intimidation from colleagues. If companies are prepared to protect, compensate or even reward whistleblowers, then other employees are more likely to confidentially report wrongdoing through the proper systems, ultimately avoiding embarrassing and financially damaging public disclosures for their company, made via the media or internet."

Lewis further argued governments should reward whistleblowers to encourage more companies to do the same. This would help break down the atmosphere of isolation and fear whistleblowers often experience when they report wrongdoing, he said.

Lewis' research has shown many businesses are still not doing enough to promote confidential reporting of wrongdoing. He visited the websites of all FTSE Top 100 companies (listed in December 2011) to search for information about how people could confidentially report issues like bribery or fraud and found that 69 of the 100 companies failed to display any information at all referring to whistleblowing. Consequently their contractors, suppliers, customers, members of the public, or staff who don't want to search for such information on company intranets, may not know how to report concerns.

 

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Ways to empower the individual

Damian Hamill 27 Apr 2012

I agree that encouraging whistle-blowing is a vital step in corporate responsibility and good governance. The question is, how? At Watt Works Consulting we have developed a simple, flexible and powerful model, the RISE Model, that can help staff at all levels develop the personal power and resources to feel able to challenge aspects of corporate behaviour that they feel are wrong and need to be exposed. Please contact us to find out more about how this can be delivered to your staff.

Rewarding Whistleblowers

Douglas Tooley 05 Aug 2013

In the most extreme cases ownership of the firm should be transferred, in whole or part, to the employees as a group.

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