Susanne Tam, CEO

1. Protecting Whistleblowers Susanne Tam, CEO

2. Whistleblowing The insider disclosure of what is perceived to be evidence: of illegal conduct or other serious risks; out of or in relation to activities of an organization including the working related activities of its staff (European Parliament study, May 2006)

3. Situations • The whistleblower belongs to the system and reports to the suitable authorities, he may report to his superior, but is not obliged to (South Africa, Australia, Israel, USA – public sector) • There is an obligation to make an internal report of misconduct before making an external report (UK, New Zealand, USA) • When whistleblowing is not an option (or almost not) the public official is obliged to report (Romania, South Korea, France)

4. The stages • Chaos – the stage when a person identifies the deficiency / offense / integrity failure and has five options of actions: ignore, disregard, participate, resist, resign • Revelation – the stage where some managers decide to get rid of the whistleblower • Remuneration /revenge – the stage where these actions are taken by the person / organization that was disclosed / reported

5. The whistleblower’s motivation • Principle • Law • The public interest • Secondary reasons: private gain, revenge • Reporter: Police officer, investigator… • Journalism

6. Countries in which there is protection of whistleblowers • USA • UK • Australia • Israel • Romania (Partially) • New Zealand • Canada • Hungary • South Korea • South Africa……

7. Countries in which there is NO protection of whistleblowers • Azerbaijan • The Netherlands • Switzerland • Ireland • And many more….

8. Motivation of countries to encourage whistleblowing A will to implement anti-corruptiontools in the public sector • Private sector financial scandals: • The bankruptcy of the Bank of Credit and International Commerce in the UK • The Enron & WorldCom scandals in the USA

9. Legislative Alternatives Protection from being fired due to whistleblowing(UK, South Korea) Punishment to those who act against whistleblowers (Australia, USA and South Korea) Compensation to whistleblowers (UK)

10. Switzerland • NO legislation to protect whistleblowers • Employees are obliged not to disclose information that might damage their organization • Same regulations implies to public sector and private sector employees • Legislation emphasizing the reporting of bribery is in progress • TI-Switzerland has established a hotline for whistleblowers

11. Romania The legislation refers to the protection of whistleblowers in governmental and public sectors

12. USA • In 1978 theCivil Service Reform was adopted, but it failed to protect employees • In 1989 the Whistleblower Protection Act was passed to protect whistleblowers from governmental sector • The Office of Special Counsel (OSC) was established in 1979 to help whistleblowers (investigation, protection of identity..) –At first failed to deliver and only lately changed its policy….

13. USA (Cont.) Sarbanes Oxley Act: up to 10 year jail sentence or up to 5 Million US$ fine, in case of discrimination against whistleblowers by his/her employee

14. United Kingdom • In 1998 the Public Interest Disclosure was adopted – added articles for protection of whistleblowers to the employment Right Act 1996 – for private and public sectors • The employee should act in goodwill and care • Whistleblowing should be in-house (mainly) • The whistleblower is not protected should a private gain be proved • A manger firing a whistleblower will be punished

15. Whistleblowing Helpline (UK) • Established in 2002 • 300 calls in half a year • The findings: • 64% said the Helpline helped to distinguish between the public action and themselves • 79% said the helpline was of help • 91% recommended using the Helpline

16. Existing Problems • No monitoring of the law’s implementation • The number of reports is still low (UK: 1999-2002 1,200 people, USA: 553 people in 2002) • Most complaints are settled outside the court and the public is not exposed to the information

17. Do we need to protect Whistleblowers? YES Research in the USA showed that even when legislation that protects whistleblowers exists, he/she still remains exposed and exiled.

18. Social Protection Legislative Protection

19. Conclusions • A change should be made via • Legislation • Establishment of a body that will support the whistleblower from the first minute when he is considering whether or not to be a whistleblower via legal action and legal support and supporting groups • HelpLine • Raising awareness in private sector organizations

20. Recommendations

21. Organizations have to understand that an improper attitude towards the whistleblower will harm the organization in the long run.

22. An effective internal reporting system • Should include (Recommendations of the PCW in UK) • A declaration of the organization stating that violations reported will be handled seriously and a statement referring to the kind of punishment expected • Keeping the ID of the whistleblower and a reporting option not through the direct manger • Punishment for false reporting • A detailed explanation of the external reporting procedure, in case needed

23. Committee of Standards in Public Life • Managers should make sure their organization operates according to the following principles: • The employees are aware of the procedures • There is an internal discussion in regard with whistleblowing: what does it involve, the tree options: openness, secrecy and anonymity • supervision of the procedures • internal communication, reminding people about the procedure (Implementation)

24. UN • In January 2006 the Policy on Whistleblowing was enacted • Focuses on whistleblower protection

25. Good Luck