Penny Haw
27 October 2003
Johannesburg — People need to know how criminal activity affects job security, profitability, business relationships and staff morale
WE ARE admonished from an early age for telling tales. As teenagers we are alienated for snitching on siblings and friends. As adults we are stigmatised, or worse, for being informers.
But now we are told it makes good business sense to blow the whistle on crooked colleagues. We are advised that the Protected Disclosures Act of 2000 will protect us for doing so.
More recently and arguably, paradoxically the Prevention of Corrupt Activities Bill and Financial Intelligence Centre Act indicate that business people who fail to report fraudulent behaviour among their co-workers could face imprisonment.
So once despised whistleblowing now seems obligatory.
About 60% of the 3500 CEOs interviewed for PricewaterhouseCoopers' 2003 Global Economic Crime Survey said economic crime was detected in their organisations as a result of whistleblowing or tip-offs. This suggests that, legislation aside, the importance of an appropriate whistleblowing mechanism should not be underestimated.
The question is, though, how to promote a culture of whistleblowing in a nation that has been programmed to equate disclosure with betrayal?
"The key to this is to educate employees, not only about their moral responsibility but also about the fact that they have a vested interest in the continuing, honest success of their company," says Alan Witherden of PricewaterhouseCoopers. "People need to understand the exact and very real impact that criminal activity and losses can have on them as individuals in terms of job security, reduced profitability, damaged business relationships and dented staff morale."
The notion is that whistleblowing is most successful in organisations with a healthy culture of transparency, accountability, empowerment and ownership. These are companies that have moved beyond passé "us and them" management styles to an approach that includes driving decisions down to the lowest level possible and encouraging buy-in in all areas of activity.
"Where it is obvious to individuals that internal crime has negative impact on not only management and shareholders but them too, they will support the concept of whistle-blowing," says Anthony Hartman of legal compliance and human resources development company E-Works Consulting.
"Before introducing a whistleblowing mechanism it is essential to have established a participative and democratic style of management that is based on trust."
Further to this, says Mark Howard of crime-reporting subscription service Whistle Blowers, the purpose and benefits of reporting company theft and fraud need to be constantly communicated at all levels for best results.
Whistle Blowers is a joint venture between PricewaterhouseCoopers and Justica Investigations that enables client employees to report irregular workplace activity anonymously via a neutral, toll-free call centre. Calls are received 24 hours a day in the language of the caller's choice, and information presented to clients with a proposed course of action.
"Our service operates on the premise that once all stakeholders understand the negative impact dishonest activity can have on them personally, their involvement is the most effective way of combating commercial crime," says Howard.
"We consult with management, employees and unions, and provide continuing education designed to motivate disclosure as beneficial to everyone in the company. We also communicate the fact that no one is immune to the whistle-blowing system. It is a great leveller. Because the programme protects identities, whistle-blowers are safe from intimidation and reprisal."
Although most whistle-blowing mechanisms provide for anonymous disclosure, experts on the subject agree that people need to be trained on the issue before they are encouraged to reveal their colleagues' suspicious behaviour.
They need to learn how to remain calm and focus on the facts of their disclosure, rather than the individuals involved. Whistleblowers are encouraged not to exaggerate or distort the facts and should put aside any inclination to personalise or act vindictively.
Where employees suspect criminal activity, they should be encouraged to keep a log of facts or insights about the case.
While whistle-blowing devices do not expect individuals to investigate cases, the more accurate and detailed the information provided the greater the likelihood of conviction.
"Despite legislation that provides for the protection of whistle-blowers I believe that organised anonymous disclosure is the most effective way to leak information regarding corporate criminal activity in this day and age," says Hartman. "The risk of retaliation and intimidation of going public remains substantial. It is unlikely that employees will be drawn into the crime-fighting fold if they are not provided with a comprehensive anonymous service and the relevant support."
So the concept of whistleblowing is widely endorsed as an advantageous addition to corporate culture. Interestingly, it goes beyond this. At least two schools in Gauteng recently subscribed to the services of a whistle-blowing service in an effort to combat theft among learners.
It seems then that we may encounter hundreds of "big brothers" everywhere, all around and from an early age.
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