Ensuring transparency and accountability: Whistleblower protection for Romanian companies

Whistleblowing aims to safeguard the integrity of organisations and public entities, exposing irregularities and violations of the law. In Romania, the introduction of Law 361/2022 on the protection of whistleblowers in the public interest has expanded the scope of protection beyond public institutions and large companies. In this article, we’ll explore the implications of the Whistleblowers Law on companies with a focus on the obligations, steps to compliance, and the overall benefits it brings to Romanian organisations.

Expanding protection to small and medium-sized enterprises

Effective from 17 December 2023, the Whistleblower Law significantly expanded its coverage to include private legal entities with between 50 and 249 employees. Previously, protection was limited to public institutions and private companies with more than 249 employees. This emphasizes the value of whistleblower reports and the necessity for transparency and fairness across organisations of all sizes.

Five essential steps to achieve compliance with the Whistleblower Law

Compliance with the Whistleblowers Law requires a proactive approach and the implementation of specific measures. Here are five essential steps that companies in Romania should consider:

1. Grasping the organisation’s dynamics and establishing goals:

First and foremost, organisations need to define their objectives in applying the whistleblower law. Whether it is mere compliance with legal requirements or the aspiration to create a culture of integrity, clear objectives drive the implementation process.

2. Creating an action plan and defining responsibilities:

It is crucial to identify the individuals or teams responsible for managing the reporting channel and carrying out internal investigations. Consideration can be given to internal or external ethics officers, ensuring specialization, efficiency, and independence in handling reports.

3. Determining the suitable reporting channel:

While the law does not mandate anonymous reporting, it emphasizes the importance of confidentiality and protection against retaliation. The reporting channels should be easily accessible, confidential, and impartial, promoting transparency while ensuring the necessary information is gathered.

4. Implementing the reporting process and procedures:

Companies should develop effective case management procedures that facilitate the prompt handling of sensitive cases. These procedures should align with the organisation’s reality and be communicated through regular training sessions to equip the responsible individuals with the skills needed to handle reports appropriately.

A digital whistleblower system allows employees to securely and anonymously report any concerns or suspected misconduct within the company. It provides a confidential and streamlined platform where employees feel comfortable disclosing sensitive information without fear of reprisal. By utilizing technology, such a system will offer several advantages over traditional reporting methods.

5. Communicating the reporting solution and training personnel:

Training is vital to ensure successful implementation of the law. Separate training programs should be designed, addressing both employees and the intake and response team responsible for handling reports. Employees should be well-informed about reporting options and associated processes.

Benefits of compliance with the Whistleblower Protection Law

Compliance with the Whistleblower Protection Law not only fulfills legal obligations but also offers numerous benefits to organisations, employees, customers, investors, and other stakeholders. By establishing secure and confidential reporting mechanisms, companies foster a culture of trust and transparency, creating a more open working environment.

Whistleblower reports serve as essential evidence in investigating fraudulent practices, unethical behaviour, and other irregularities. Additionally, compliance showcases an organisation’s commitment to integrity, enhancing its reputation and instilling confidence in stakeholders.

Penalties by the law and reputational risk

While the law introduces various penalties for non-compliance, the severest being fines of up to 40,000 lei (about 8,000 euros equivalent), the reputational risk associated with violating legal provisions regarding integrity is equally significant. Companies need to recognize that financial penalties are not the only concern. The negative impact on reputation and public perception can have far-reaching consequences in today’s interconnected world.

The Whistleblower Protection Law in Romania represents a significant step towards creating an environment of transparency and accountability within organisations. By expanding protection to smaller companies, the law emphasizes the importance of establishing reporting channels, conducting internal investigations, and ensuring the confidentiality and protection of whistleblowers. Through diligent implementation of the law’s provisions and ongoing training, Romanian companies set a benchmark for ethical practices in the business landscape.

Would you like to learn more about a whistleblowing service and safe internal reporting channels? You can learn more about Whistlelink’s all-in-one solution here or book a free demo!