--- title: "Whistleblowing: Importance for business success | Ethicontrol" description: Discover why implementing a whistleblowing system is crucial for business. Learn about the benefits, requirements, and guidelines for effective reporting. --- [Skip to content](https://ethicontrol.com/en/good-for-business#main-content) [![Ethicontrol logo with Ukrainian flag](https://ethicontrol.com/hubfs/ethicontrol%20ua%20logo%20website.svg)](https://ethicontrol.com/en/main?hsLang=en) - Features Show submenu for Features - [Internal reporting channels](https://ethicontrol.com/en/features/internal-reporting-channels) - [Toll free lines](https://ethicontrol.com/en/features/specialised-contact-center) - [Incident management](https://ethicontrol.com/en/features/incident-management) - [Case management](https://ethicontrol.com/en/features/case-management) - [Analytics and reporting](https://ethicontrol.com/en/features/analytics-and-reporting) - Use cases Show submenu for Use cases - [Ethics & Compliance](https://ethicontrol.com/en/main) - [EU Whistleblowing Directive](https://ethicontrol.com/en/eu-whistleblowing-directive-platform) - [Antifraud and Corporate security](https://ethicontrol.com/en/painless-security-platform) - 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[Security and trust](https://ethicontrol.com/en/trust-center) - [Our methodology](https://ethicontrol.com/en/painless-ethics-management-methodology) - [Whistleblowing FAQ](https://ethicontrol.com/en/faq) - [We hire!](https://ethicontrol.com/en/join-us) - [Customer support portal](https://help.ethicontrol.com/en/support/home) ![Burger](https://ethicontrol.com/hubfs/Burger.svg) ![Cross](https://ethicontrol.com/hubfs/Cross.svg) Search English [Demo](https://ethicontrol.com/meetings/ectrl1/demo?hsLang=en) [Home /](https://ethicontrol.com/en/main?hsLang=en)Resources / Having Ethicontrol is good for your business # Speak up / Whistleblowing is good for your business ## **A wiki for those who are still hesitant.** [![Regulators expect it](https://ethicontrol.com/hubfs/svgexport-51-1.svg "Regulators expect it")](https://ethicontrol.com/en/good-for-business#regulators) [Regulators expect it](https://ethicontrol.com/en/good-for-business#regulators) [![Best companies do it](https://ethicontrol.com/hubfs/svgexport-52-1.svg "Best companies do it")](https://ethicontrol.com/en/good-for-business#best) [Best companies do it](https://ethicontrol.com/en/good-for-business#best) [![Investors are looking for it](https://ethicontrol.com/hubfs/svgexport-53-1.svg "Investors are looking for it")](https://ethicontrol.com/en/good-for-business#investors) [Investors and ESG stakeholders look for it](https://ethicontrol.com/en/good-for-business#investors) ## Regulators expect it --- | ![Poster European Commission with the flag of EU](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Poster%20European%20Commission%20(1).webp?width=94&height=129&name=Poster%20European%20Commission%20(1).webp) | Both public and private entities should implement internal channels for whistleblower reports (with particular attention to the financial sector) with a headcount of 50+ employees. - different types of channels to be available (hotline, online form, personal meeting) - strict confidentiality - obligatory follow-ups on cases with a final term (not longer than three months) - information about whistleblower hotlines should be easily accessible [EU Whistleblowing Directive, 2019](https://ethicontrol.com/en/eu-whistleblowing-directive-platform?hsLang=en) DIRECTIVE (EU) 2019/1937 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 October 2019 on the protection of persons who report breaches of Union law |   | ![Poster ISO 37001 anti-bribery management systems ](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/ISO%2037001%20anti-bribery%20management%20systems%20(1).webp?width=100&height=142&name=ISO%2037001%20anti-bribery%20management%20systems%20(1).webp) | “Each organization that sets up a whistleblowing system should have a Whistleblowing Management Function, a specific role, even if it’s not a dedicated position, with responsibilities for the administration of the whistleblowing system” ISO 37001 Anti-bribery management systems – Requirements ISO 37002 Whistleblowing management systems – Guidelines | | --- | --- | --- | --- | --- | |   |   |   |   |   | | ![Evaluation of Corpor (1)](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Evaluation%20of%20Corpor%20(1).webp?width=116&height=151&name=Evaluation%20of%20Corpor%20(1).webp)   | «Does the company have an anonymous reporting mechanism and, if not, why not? How is the reporting mechanism publicised to the company’s employees and other third parties? Has it been used? Does the company take measures to test whether employees are aware of the hotline and feel comfortable using it? How has the company assessed the seriousness of the allegations it received? Has the compliance function had full access to reporting and investigative information? Outsourced hotlines are more effective compared to in-house». U.S. Department of Justice Criminal Divison, Evaluation of Corporate Compliance Programs, 2020 |   | ![Screenshot_2021-04-1](https://ethicontrol.com/hs-fs/hubfs/Screenshot_2021-04-1.png?width=116&height=150&name=Screenshot_2021-04-1.png) | An effective compliance program should include a mechanism for an organization’s employees and others to report suspected or actual misconduct or violations of the company’s policies on a confidential basis and without fear of retaliation Companies should have an efficient, reliable, and properly funded process for investigating the allegation and documenting the company’s response, including any disciplinary or remediation measures taken. A Resource Guide to the U.S. Foreign Corrupt Practices Act. Second Edition, 2020 | |   |   |   |   |   | | ![Title page of Good Practice Guidance on internal controls, ethics, and compliance ](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Title%20page%20of%20Good%20Practice%20Guidance%20on%20internal%20controls%2c%20ethics%2c%20and%20compliance%20(1).webp?width=106&height=140&name=Title%20page%20of%20Good%20Practice%20Guidance%20on%20internal%20controls%2c%20ethics%2c%20and%20compliance%20(1).webp)   | “…internal and where possible confidential reporting … to report breaches of the law or professional standards or ethics occurring within the company, in good faith and on reasonable grounds” Good Practice Guidance on Internal Controls, Ethics, and Compliance, 2010 |   | ![Screenshot_2021-04-1 (2)](https://ethicontrol.com/hs-fs/hubfs/Screenshot_2021-04-1%20(2).png?width=106&height=150&name=Screenshot_2021-04-1%20(2).png) | Mentioned in APEC Anti-Corruption Code of Conduct for Business; ICC Rules on Combating Corruption; OECD Good Practice Guidance on Internal Controls, Ethics, and Compliance; World Bank Group Integrity Compliance Guidelines. Anti-Corruption Ethics and Compliance Handbook for business, OECD | ## Best companies do it --- | ![Title page Ethisphere (1)](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Title%20page%20Ethisphere%20(1).webp?width=105&height=142&name=Title%20page%20Ethisphere%20(1).webp)   | “91% of honorees provide third parties access to their hotlines and reporting mechanisms.” “An increasing number of World’s Most Ethical Companies honorees are sharing reporting and investigations with their employees (from 14% in 2016 to 53% in 2020), the public at large (from 11% in 2016 to 30% in 2020)”. World's Most Ethical Companies, 2020 |   | ![Title page Survey](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Title%20age%20Survey.webp?width=105&height=150&name=Title%20age%20Survey.webp)   | “100% of survey respondents say that their company provides a formal process for employees to raise ethical concerns or ask questions confidentially” IBE Report on corporate ethics policies and programmes, 2021 | | --- | --- | --- | --- | --- | |   |   |   |   |   | | ![Screenshot_2021-04-1-1](https://ethicontrol.com/hs-fs/hubfs/Screenshot_2021-04-1-1.png?width=116&height=165&name=Screenshot_2021-04-1-1.png) | 97% of respondents employ a speak-up (whistleblowing) hotline as an integral part of the compliance program.   IBE Report on corporate ethics policies and programmes, 2020 |   | ![Research Whistleblowers are a sing og healthy companies (1)](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Research%20Whistleblowers%20are%20a%20sing%20og%20healthy%20companies%20(1).webp?width=114&height=173&name=Research%20Whistleblowers%20are%20a%20sing%20og%20healthy%20companies%20(1).webp)   | “Companies that more actively use their internal reporting systems can identify and address problems internally before litigation becomes likely.” “High usage is more often a sign of a healthy culture of open communication between employees and management than a harbinger of real trouble.” “Managers should view hotlines as a critical component of traditional audit mechanisms and board of director meetings.”   Harvard Business Review Research, 2018 | |   |   |   |   |   | | ![Screenshot_2021-04-1 (2)-1 (1)](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Screenshot_2021-04-1%20(2)-1%20(1).webp?width=121&height=162&name=Screenshot_2021-04-1%20(2)-1%20(1).webp)   | “Whistleblowers are crucial to keeping firms healthy.” “Internal whistleblowing systems are a tool to see what you otherwise wouldn’t.” “Second-hand reports are more credible and more valuable, on average, than first-hand reports.”   Harvard Business Review Research, 2020 |   | ![Global fraud and risk report 2019-2022 (1)](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Global%20fraud%20and%20risk%20report%202019-2022%20(1).webp?width=114&height=162&name=Global%20fraud%20and%20risk%20report%202019-2022%20(1).webp)   | Whistleblowing is listed as the most effective tool to detect fraud. “Creating an effective whistleblowing program—one that preserves confidentiality (if not anonymity), investigates cases in a timely manner, and resolves them consistently—is a challenge.”   Kroll Global Fraud and Risk Report 2019/20 | |   |   |   |   |   | | ![Poster Report of the nations 2020](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Poster%20Report%20of%20the%20nations%202020.webp?width=137&height=178&name=Poster%20Report%20of%20the%20nations%202020.webp)   | “Since 2010, the use of hotlines or reporting mechanisms has increased notably, to 49%” “Organizations with hotlines detected fraud by tip more often, 49% vs 31%” “Organizations with hotlines detect frauds more quickly than those without hotlines” “Median losses were nearly doubled at organisations without hotlines”   ACFE Report to the Nations on Occupational Fraud and Abuse, 2020 |   | ![Title of Final Report](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Title%20of%20Final%20Report.webp?width=130&height=186&name=Title%20of%20Final%20Report.webp)   | “Software that protects the confidentiality of whistleblowers and their identity may reduce the risk of retaliation” “Activities are undertaken to ensure the proper functioning of disclosure channels may, thus, lead to fewer cases of retaliation and lower judicial costs.” “The proper setup and maintenance of internal channels may, thus, influence the probability of reporting and also of the proper handling of a disclosure.”   Estimating the Economic Benefits of Whistleblower Protection in Public Procurement, 2017 | |   |   |   |   |   | | ![Title page Nordic business ethics survey 2019](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Title%20page%20Nordic%20business%20ethics%20survey%202019.webp?width=130&height=182&name=Title%20page%20Nordic%20business%20ethics%20survey%202019.webp)   | “…the response should never be ignored. And it is crucial to provide a confidential means for reporting, and for having expertise and resources to look into the reports. The organizational culture is created by the daily actions of what is said and done, but also by leaving things unsaid or undone.” “Confidential whistleblowing channels…is not only about collecting reports, but also ensuring that there is sufficient competence and adequate processes to assess and manage the concerns as well.”   Nordic business ethics survey, 2019 |   | ![Poster Trust ECI ](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Poster%20Trust%20ECI%20(1).webp?width=130&height=170&name=Poster%20Trust%20ECI%20(1).webp)   | “At a minimum, leaders need to talk consistently about ethical conduct and the ways in which the company expects their employees to behave. But just talking about ethics is not enough. Leaders must also encourage employees to speak up when standards are not being observed. Instead of relying on one-way exchanges, the goal should be a climate where employees feel empowered to raise concerns.”   Building companies where values and ethical conduct matter, 2018 | |   |   |   |   |   | | ![Integrity Survey 2013 (1)](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Integrity%20Survey%202013%20(1).webp?width=114&height=148&name=Integrity%20Survey%202013%20(1).webp)   | «One of the most convenient communication channels for employees and most suitable anonymous channel for non-employees»   KPMG Integrity Survey, 2013   |   | ![IBE label](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/IBE%20label.webp?width=114&height=147&name=IBE%20label.webp)   | «Outsourced hotlines are more effective compared to in-house»   IBE Effectiveness of hotlines Report, 2012   | ## Investors and ESG stakeholders look for it --- | ![Screenshot_2022-09-2](https://ethicontrol.com/hs-fs/hubfs/Screenshot_2022-09-2.png?width=109&height=153&name=Screenshot_2022-09-2.png)   | The Board should ensure that workforce policies and practices are consistent with the company's values and support its long-term sustainable success. The workforce should be able to raise any matters of concern. The UK Corporate Governance Code, 2018 |   | ![Title page Chancery Lane](https://ethicontrol.com/hs-fs/hubfs/Website/Having%20Ethicontrol%20is%20good%20for%20your%20business/Title%20page%20Chancery%20Lane.webp?width=109&height=140&name=Title%20page%20Chancery%20Lane.webp)   | Capture and address ESG concerns by whistleblowing about climate change with a Net Zero clause in your policy   The Chancery Lane Project, Net Zero Within Company Whistleblowing Policies, 2021 | | --- | --- | --- | --- | --- | | ![Screenshot 2024-01-30 at 17.17.28](https://ethicontrol.com/hs-fs/hubfs/Screenshot%202024-01-30%20at%2017.17.28.png?width=107&height=152&name=Screenshot%202024-01-30%20at%2017.17.28.png)   | Disclosure 2-25 Processes to remediate negative impacts: The organisation shall describe its approach to identify and address grievances, including the grievance mechanisms that the organization has established or participates in. Disclosure 2-26 Mechanisms for seeking advice and raising concerns: The organization shall describe the mechanisms for individuals to: - seek advice on implementing the organization’s policies and practices for responsible business conduct; - **raise concerns about the organization’s business conduct**. 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