The EU whistleblowing directive was first adopted in 2019, and the national law is expected to come into force from the beginning of 2023. The purpose of the law is to protect whistleblowers who report suspected fraudulent behaviour, corruption or violations of the law by offering them a secure channel for reporting these issues. The law guarantees that reporters acting in good faith will be protected against any retaliation.
Antti Aalto:
"The European Union directive differs from the original US whistleblowing model; instead of monetary gain, its aim is to offer a high level of protection for reporters and ensure anyone can securely voice their concerns.
Transparency International recognises that the European system sets out adequate protection for whistleblowers and enables managements to discharge their legal duties,
In practice, there are strict requirements for the reporting channels – they must be both technically secure and protect the information shared through them. It is worth noting that the protection obligation is on a par with banking.
Not many systems can fulfil these stringent conditions. We offer our clients a resource-saving turnkey solution: the outsourced service takes care of the lawful requirements and offers peace of mind for decision makers, who ultimately have the duty to act based on the whistleblowing reports.
Antti Aalto, Head of Legal Compliance services
The management has a duty to review all the reports and intervene as appropriate, and the protection the reporting channel offers has helped reporters share sensitive information without fear of retaliation and in compliance with GDPR and other privacy laws.
Occasionally, we have noticed that our clients have struggled with internal conflicts that may have led to damage to their public image and reputation, which in turn inevitably hurts the business in the long run.
Once the internal reporting channel has been set up enabling the internal reports to reach the management without a delay while avoiding conflicts of interest, the effect on the overall image is visible. The improved internal communication flow enables early detection and the addressing of potentially harmful activities.
We can even go as far as to call the change a revolution in communication. Setting up the system can be arduous administrative work, but it will repay itself in many ways. A working whistleblowing system is the best auditing tool. Compared to other controls, whistleblower protection has unique properties and effectiveness.
A well-maintained administrative system is also a good measurement of the management’s responsible actions; our work in turn is to ensure decision makers can sleep in peace, knowing their legal obligations will be detected early and can be fulfilled in the normal course of business."
