Whistle-blowing By: Paul Addy On: 18th November @ 13:00

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Director – Paul M. Addy MCIPD

Whistleblowing

Paul Addy MCIPD Paul.addy@positivepeoplehr.co.uk

• I am a qualified Director of HR with over 20 years’ experience in all aspects of human resources

• I have worked for large corporate organisations such as Barclays, Co-operative Financial Services, General Electric (GE), Pace Technology and ASDA

• Most recently I have been the Director of HR for the Lowell Group, a medium sized financial services organisation

• I am a qualified workplace mediator and have a passion for employee engagement and doing the right thing

• Qualified as a psychometric level A&B practitioner

Learning outcomes

• To understand what whistleblowing in the workplace means • To be able to articulate what should be included in a Whistleblowing Policy • Understand how to manage the process if the whistle is blown • To know how to enhance your current policy and mitigate the risk

What is whistleblowing? Whistleblowing is a term used when someone who works in or for an organisation raises a concern about a possible fraud, crime, danger or other serious risk that could threaten customers, colleagues, shareholders, the public or the organisation’s own reputation. The Public Interest Disclosure Act (PIDA) is known in the UK as the whistleblowing law

Used as an early warning system, whistleblowing can help alert employers to serious risks including: • Health and Safety - a danger in the workplace • Conduct which is an offence or against the law • Fraud in, on or by the organization • Accounting malpractice • Mis-selling or price fixing • Offering, taking or soliciting bribes • Dumping damaging material in the environment

Is whistleblowing a statutory requirement? There is no statutory requirement in the Public Interest Disclosure Act for organisations to have a whistleblowing policy. • The Government expects public bodies to have a policy in place • Under the Combined Code on Corporate Governance, companies listed in the UK are obliged to have

whistleblowing arrangements or explain why they do not

• It should also be noted that, under PIDA, the adequacy of an organisation’s whistleblowing arrangements is one of the factors that tribunals and courts look at when they consider whether a wider public disclosure (say to the media, an MP or a consumer or citizen group) is protected under the legislation

• Importantly, regulators and the courts are increasingly looking at the adequacy of whistleblowing and other risk management arrangements to determine whether an offence has been committed by an organisation under regulatory or criminal laws

Why organisations should encourage whistleblowing?

• Situations can happen that present risks to businesses

• They should want to know about these ASAP

• They are usually identified by the people working in the business

• Can help with deterring wrong doing

• Pick up potential problems early

• Enable critical information to get the people who need to know and can address the issue

Research for the Institute of Business Ethics has shown that while one in four employees are aware of misconduct at work, more than half (52%) stay silent

Why organisations should encourage whistleblowing?

• Demonstrate to stakeholders, regulators and the courts that they are accountable and well managed (New FCA rules 2016)

• Reduce the risk of anonymous and malicious leaks

• Minimise costs

• Maintain and enhance its reputation

• Create an open culture

Research for the Institute of Business Ethics has shown that while one in four employees are aware of misconduct at work, more than half (52%) stay silent

Introducing a policy

• Before an organisation introduces a whistleblowing policy, its Board or governing body should make clear that the directors and senior management have a common and credible commitment that • they want employees to raise concerns about malpractice

• they recognise that, in the absence of good arrangements, this can take courage

• the organisation will not tolerate the victimisation of anyone who blows the whistle in good faith in line with

the law or the policy

• they will provide the support necessary to ensure the arrangements remain effective

Introducing a policy

• The organisation should consult on the arrangements with staff, managers and any recognised union. Issues for

consultation can sensibly cover • the risks that the organisation faces

• the importance of the distinction between whistleblowing concerns and grievances

• its experience where whistles were blown and were not

• the factors which may deter its employees from raising whistleblowing concerns

Introducing a policy

Consultation Cont.

• how to minimise misunderstanding or misuse

• how the policy relates to the stated values and ethics of the organisation

• the role of line and senior management in the policy

• the availability of advice

• the options for external disclosures

• the communication strategy

What should be included in the policy?

• Gives examples of the types of concerns to be raised, so distinguishing whistleblowing from grievances • Gives the option to raise concerns outside of line management

• Provides access to an independent helpline offering confidential advice

• Offers option to raise concerns in confidence

• Explain when concerns may safely be raised outside (e.g. with a regulator) • Prohibits [i] reprisals against a bona fide whistle- blower, and [ii] the making of a false allegation maliciously

What to do when the whistle has been blown?

• Where the issue is sensitive, the number of people involved in addressing any whistleblowing concern should be kept to a minimum

• Where the implications are potentially serious or far-reaching, the independence and oversight of the investigation should also be considered

• It is also important that, where confidentiality has been promised it should be respected

• Where the concern needs to be referred on to a more specialist function such as internal audit or health and safety, this should be done without undue delay.

What to do when the whistle has been blown?

• Additionally the employee should be asked whether s/he wants to be in direct contact with the function themselves, or would rather any communication was done through the designated officer or the internal hotline

• Where specific inquiries need to be made in the area where the whistleblower works, the whistleblower should be forewarned so s/he is prepared to answer questions along with everyone else

• NOTE Keeping the whistleblower updated as to progress, and ensuring s/he can contact the designated officer if s/he has any questions, will help manage expectations, pre-empt problems and ensure the process works well

Positive People HR – Whistleblowing Service

Usually within an internal whistleblowing policy employees will be encouraged to raise serious concerns with their line manager or alternatively there will be opportunity to raise the issue to a dedicated person or persons within the company. The whistleblowing portal developed by Positive People HR allows the employee to raise their concerns anonymously, if they wish on line with an independent external organisation and has been designed to protect the employee and the employer. If the employee wishes to call they are provided with a helpline number.

Positive People HR – Whistleblowing Service

What is included in the whistleblowing service from Positive People HR? Access - Access for Employees via telephone and an independently hosted portal Response - Response to issues raised according to the Service Levels and we will advise the relevant person Action - Once the issue is raised, we will request an internal action plan from the relevant person to allow us to support the client in managing the action plan and ensuring that appropriate actions and investigations take place Review - Following completion of the action plan we will review the actions that have been taken and any necessary documentation and provide the client with a report to confirm that a reasonable and proportionate investigation has taken place and that the outcome presented is appropriate Take the A.R.A.R. approach to whistleblowing!

References

• This presentation has been developed in part to references from PAS 1998:208 Whistleblowing Arrangements Code of Practice - BSI

Thank you Any Questions?

Contact Information Email: paul.addy@positivepeoplehr.co.uk Tel: 01484 430331 Mob: 07798 656508 Website: www.positivepeoplehr.co.uk Twitter: positive_hr

Telephone: 0113 322 7240

Website: www.shorebird-rpo.com

Email: marketing@shorebird-rpo.com

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