There’s a general belief that whistleblowers are found only within government agencies or public offices, often associated with exposing corruption or unethical actions. However, individuals also speak out within private companies and organisations of varying sizes. These people play a vital role in the functioning of society by bringing attention to unlawful acts, discrepancies, and issues that deviate from proper standards.
Many times, people mistakenly link whistleblowing with gossiping or being a snitch, and this leads to the term being viewed negatively. Such associations often come with the idea of betrayal, making it seem as though whistleblowers are disloyal. Still, actions taken by these individuals often bring about positive outcomes when all is said and done.
Being honest at work shouldn’t feel like betrayal (Photo: Alamy)Prof. Chris Cowton once shared an interesting opinion in a publication by the Institute of Business Ethics titled Speaking Up for Whistleblowing. He noted:
“I do sometimes wonder, though, whether the word ‘whistleblowing’ can impede best practice…”
He went on to explain that many organisations, especially in the United Kingdom and the United States, have adopted alternative expressions like “speak up” or “speaking up”. This is because the term “whistleblowing” paints a picture of a referee blowing a whistle to stop a game, which can make the process seem confrontational or accusatory. Yet, in many cases, it’s better if staff members feel free to raise issues early rather than wait until things escalate to formal allegations.
The Role Whistleblowers Play in Reducing Wrongdoing
When it comes to uncovering corporate fraud, whistleblowers often serve as a valuable source of information, even though there is a high risk of backlash. While some countries offer financial rewards to those who report misconduct, the real value lies in the impact such reports have in holding offenders accountable. It’s been found that whistleblower reports account for roughly 40% of fraud detection cases.
Encouraging individuals to come forward remains essential in reducing both fraudulent behaviour and its effects. Whistleblowing operates in two important ways when it comes to stopping misconduct.
First, it ensures those responsible are held accountable. Within a company setting, this could result in dismissal or demotion, depending on the situation. Taking appropriate steps to deal with offenders helps the organisation to remove harmful influences.
Second, whistleblowing helps shape behaviour within the workplace. When others see that misconduct leads to serious consequences, they’re less likely to act in similar ways. On the other hand, when wrongdoing goes unchecked, it tends to spread as more people begin to follow the same bad example.
Encouraging Openness Builds Stronger Workplaces
For any organisation to function well, honesty and responsibility are necessary. When companies are transparent and foster a safe environment, workers tend to be more loyal and comfortable. That peace of mind often improves performance.
Studies show that protecting employee welfare, both mentally and physically, leads to better productivity. Whistleblowing, in this way, can directly influence the success of a company. Georgina Halford-Hall, head of Whistleblowers UK, supports this view. She said:
“At last everyone is waking up to the fact that whistleblowers add value to society and to business…”
She emphasised that raising concerns should be part of every boardroom discussion. Since whistleblowers often detect misconduct early, they’re one of the most cost-effective safeguards a company has against fraud and concealment.
She also pointed out that it is no longer enough for organisations to have whistleblowing policies hidden in drawers. There must be active efforts to educate staff on how to report concerns and assure them that their voices will be taken seriously and treated confidentially.
After collecting testimonies from thousands of whistleblowers, Whistleblowers UK has been pushing for a dedicated Office of the Whistleblower in the UK. This body would require businesses to have proper reporting channels that are both independent and capable of thorough investigations.
Their proposals have already gained support from lawmakers across political divides. Once passed into law, these changes would ensure companies take whistleblowing seriously and act with integrity when handling reports.
As companies try to keep up with changes in global markets and economic conditions, they also face the challenge of hiring and keeping top talent. One effective way to attract skilled workers is to demonstrate a commitment to fairness and a willingness to stand by those who speak the truth.
Public Perception and Brand Reputation
When people hear about unethical or illegal behaviour linked to a company, it can damage the brand’s name permanently. The old idea that “any publicity is good publicity” simply doesn’t apply here. Bad press, especially when tied to dishonesty, causes customers to lose trust.
Whistleblowing is about integrity, not disloyalty (Photo: Getty Images)A good example is the 2015 scandal where Volkswagen was caught manipulating emissions data. Years later, the company still struggles with the damage done to its image. We highlighted this case in another article discussing three situations where whistleblowing could have changed the outcome.
When an organisation becomes associated with dishonesty, people start to doubt its mission and values. That lack of trust can spread to both employees and customers. Taking whistleblower reports seriously gives the company a chance to confront issues directly and rebuild its reputation through transparency and accountability. This also applies beyond businesses—to government bodies and public authorities as well.
Why Whistleblowing Matters in Society
The stability of the systems that support our daily lives often depends on the willingness of people to speak out. When employees and citizens believe they can report wrongdoing without fear, there’s a higher chance that issues will be addressed before they cause greater harm.
Private businesses also play a role in societal welfare. Imagine a popular company cutting corners by using dangerous materials to reduce costs, or contractors using weak materials in buildings. Such decisions can have serious consequences and endanger lives. These are the kinds of threats that whistleblowing can help prevent, if someone is bold enough to report them.
This is why whistleblowers remain essential in today’s society. Speaking up about misconduct has become more widespread, partly because social media gives everyone a platform to share information. Now, incidents that would once remain hidden can quickly gain public attention online.
New rules like the updated EU directive on whistleblowing also mean better legal protection. From 17 December 2023, companies in the EU with more than 50 staff members are now required to put whistleblowing systems in place. This should help normalise the act of reporting concerns, even within smaller organisations, and give whistleblowers the support they need to act.