Associations should adopt whistleblower policies to enhance their overall integrity and operational transparency.
In a Nutshell
Whistleblower policies should:
- set clear standards and expectations
- provide a consistent framework for raising concerns, and
- foster a culture of openness and accountability
Whistleblower policies serve as a valuable resource, offering guidance and answers to questions about reporting misconduct. An effective whistleblower program can help associations detect issues in their early stages, allowing for timely and appropriate response.
Effective Whistleblower Policies Share Common Elements
Demonstrate Commitment from Leadership
It is important for your policy to demonstrate that senior management is genuinely committed to ethical practices and reporting wrongdoing. Often, this commitment is shown by a message from a senior manager accompanying the policy or if the policy itself is issued or signed by a senior manager (like a CEO). This message sets the tone for the policy and reassures employees that their concerns will be treated fairly and the association will take them seriously.
Define What a Whistleblower Is
The policy should clearly define what a “whistleblower” is within the context of your association. That definition will typically be broad, stating that a whistleblower is anyone with some connection to the association (including, for example, former employees or non-employee contractors) who makes a report under the policy.
Identify What the Policy Is Meant to Address
Your policy should include the kinds of concerns it is intended to address. These may include fraud, embezzlement, corruption, workplace safety violations, discrimination, harassment, diversions from company policy, or illegal activities. Your policy should note that reporters have an obligation to report “in good faith,” meaning that there is a reasonable basis on which the report is being made.
Set Out Clear Reporting Mechanisms
Your policy should explain the paths by which a whistleblower may report concerns. These could include anonymous reporting methods, an internal telephone hotline, a dedicated email address, an online portal, or direct reporting to a designated person (like a compliance officer) or department. Providing multiple reporting avenues ensures that reporters can choose the method that best suits their situation (bearing in mind that reporting to a direct (or even indirect) supervisor may be awkward).
Assure Whistleblower Protections
Make sure your policy specifies the protections whistleblowers receive, such as anonymity and protection from retaliation. You may want to emphasize that anonymous reporting options are available and that retaliation against reporters is prohibited. At the same time, you may want to note—in the interest of transparency—that there may be limits to these protections. For example, it may not be possible to pursue certain investigations without revealing a whistleblower’s identity, and those instances will require the whistleblower to weigh maintaining privacy against addressing organizational problems.
Clarify the Investigation Process
You should describe the step-by-step procedures to be followed once a report is received, such as initial assessment, formal investigation and resolution. Outlining the investigation process helps build trust and de-mystifies the process so everyone knows what to expect.
Remember Legal Considerations
A complete policy should address the legal considerations related to whistleblowing, which will explain the rights of everyone subject to the policy. Consider having any policy your association creates reviewed by legal counsel in your jurisdiction, to ensure it comports with all applicable laws and regulations.