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6 benefits of whistleblowing organisations cannot afford to ignore

People discussing the benefits of whistleblowing.

Whether it’s to prevent serious harm, reduce losses or build a loyal workforce, the benefits of whistleblowing in any organisation are significant, and could be integral to its success.

Six benefits that whistleblowing can bring to an organisation are:

  1. Combat fraud
  2. Avoid reputational damage
  3. Prevent issues escalating
  4. Minimise losses
  5. Raise awareness
  6. Create an open culture
Lets take a deeper look at how these benefit organisations.

1. Helps combat fraud

Encouraging people to speak up and expose wrongdoing is a major factor in fighting fraud, corruption and unethical behaviour. The mere presence of a whistleblowing system may be enough to put people off committing any illegitimate activity, thus significantly reducing the risk of fraud.

2. Avoids reputational damage

When an issue is raised through internal channels, it allows the department in charge to tackle it appropriately as well as discreetly. More crucially, an anonymous system helps someone who doesn‘t feel safe or confident sharing information with their employer to come forward. If there isn’t an internal solution they may choose to take the information elsewhere or disclose it publicly, potentially damaging the company’s reputation.

3. Prevents issues escalating

One of the greatest benefits of whistleblowing in an organisation is that it provides the opportunity to catch problems early on. When the information is shared directly with the dedicated team, the company can deal with the concern immediately, before it escalates. Potentially preventing serious harm or damage. Removing risks early also means a company can focus on what’s really important.

4. Reduces losses

When illegitimate activities are reported, it allows a company to tackle the problem quickly as well as prevent it from happening again in the future. In this way, companies avoid painful losses which are damaging for everyone, from employees to clients and suppliers.

5. Raises awareness

Without whistleblowers, we may be unaware of illegal or unethical things happening under our noses. The information they pass on, no matter the degree of severity or the nature of it, can raise awareness of issues and concerns within an organisation that need to be addressed. With such knowledge in hand, a company can learn, grow and flourish. This is why a proper whistleblowing system is essential to managing breaches in a quick and constructive way.

6. Benefits of whistleblowing: It creates an open culture

A company that shows it actively encourages employees to report concerns and supports them if they do so, will gain more trust. An open and honest culture usually creates better working relationships and dedication resulting in higher productivity.

Furthermore, loyal employees are more likely to make an internal report rather than disclose information externally. Which leads us back to the reasons mentioned above of why it benefits an organisation to provide a whistleblowing channel for its employees.

Would you like to learn more about a whistleblowing service and safe internal reporting channels? Read more about the EU Whistleblowing Directive here and at EUR-Lex.

Are you looking for a safe and secure whistleblowing solution? Read more here.

Would you like to discuss a whistleblowing system for your organisation?
Please contact us or book a free demo!

If you have any thoughts about this article or would like to know more about Whistlelink, we’d love to hear from you.

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