The arrangement of internal reporting channels is a statutory obligation for many actors, which may also result in numerous benefits.
The internal processing of reports will prevent damage to the organisation’s reputation and suspicions of abuse can most often be addressed more effectively in house. The effective internal investigation of abuses promotes the achievement of the objectives of the Act and improves the competitive edge of those companies that comply with legislation compared to those that do not.
Knowledge-based management and addressing shortcomings: It is important for the employer to receive up-to-date information on events in their organisation so that the activities can be improved and possible irregularities can be corrected. An internal reporting channel is an important tool for accessing information. The appropriate organisation of such a channel will enable a rapid response to irregularities.
Dissemination of information on the reporting channel and the processing of reports: The employer must inform its employees of the existence of a reporting channel, of the cases in which a report can be submitted and how the notifications are processed in a clear and concise manner. Dissemination of information on the reporting channel will promote transparency and encourages employees to report abuses they have observed.
Financial savings: An appropriate internal reporting channel is one of the most effective ways to obtain information on abuses. Addressing abuses at an early stage prevents the accumulation of larger financial losses. The internal processing of reports will also prevent costs that a company could incur as a result of damage to its reputation caused by the processing of a matter by the authorities or the publication of a matter.
Prevention: Compliance with the obligations laid down in the Whistleblower Act will create an operating culture in the organisation where people want to report abuses, they are effectively addressed and the perpetrators are held accountable. A well-functioning system will increase transparency and the risk of being caught, which will contribute to preventing unethical activities.