Blowing the Whistle
Ralph Nader coined the term “whistleblower” in the 1970s when he hosted a conference on professional responsibility. His linguistic hack was designed to counter negative connotations of labels like “rat” and “snitch.”
As opposed to a grievance, which likely describes a personal complaint against a fellow employee, a whistleblower generally airs an accusation against the company. Whether the charge results from a long-simmering vendetta or a well-intentioned heads-up does not matter; the underlying motives are irrelevant. All that counts is that the whistleblower sincerely believes the complaint to be true.
Businesses create whistleblower policies and procedures to reinforce a transparent and supportive office culture. Ideally, the objective is to identify, investigate and address misconduct before events reach the level of a criminal charge or public relations debacle.
More recently, the focus of what constitutes wrongdoing has widened. Years ago, the violation tended to be illegal financial misbehavior, such as fraud, embezzlement or theft. Today, in keeping with current social trends, it is likely to be harassment, discrimination or bullying. Firms take especially seriously any reported risks to worker safety with potential moral and legal implications. Companies recognize that all these offenses can damage their hard-earned brands, incur legal costs and destroy valuable business relationships.
Protected by law
Rules and regulations surrounding whistleblowing and reporting have also evolved and been codified into federal and state statutes. The Whistleblower Protection Act of 1989 was enacted to shield federal workers from reprisals when reporting mismanagement, abuse, and public health and safety violations. In 2002, the Sarbanes-Oxley Act was passed to guard investors from fraudulent corporate practices. In the wake of the 2008 financial crisis, lawmakers followed suit with the Dodd-Frank Wall Street Reform and Consumer Protection Act, which also prohibits employers from retaliating against workers.
Corporate retaliation can take many forms, both overt and subtle:
- Firing.
- Demotion.
- Reduction of benefits.
- Garnishment of wages.
- Reduction or increase in work hours.
- Blacklisting.
- Sidelining.
- Reassignment.
- Bad references.
In addition, a variety of other laws pertain to specific industries, such as automotive, nuclear, trucking, chemical, and gas and oil.
Taking steps
Before trouble arises, a business should have ready its own book of policy rules. Historically, whistleblower issues were typically handled by legal, compliance or risk departments, but nowadays, HR is likely to be first on the scene.
Your policy document may begin by defining what whistleblowing actually is: bringing wrongdoing, committed by the employer or co-workers, to the attention of management. It will go on to lay out in more detail how to raise the concerns and to whom. It should highlight the intention to treat the entire issue fairly and confidentially, and possibly provide some time frame and a method for resolution.
With its policy statements prepared, the company should advertise the system across the workforce and thank employees for coming forward. A haphazard approach will not work well. Every complaint needs to be investigated. It will be necessary to train managers in the reporting process and prepare them for the types of alleged behavior they are likely to confront. They should be alert to false allegations and reprisals, too.
Some companies may add an anonymous hotline to encourage a safe speak-up culture. Employees doubtless know that they are risking ridicule or ostracism if their complaints backfire or their anonymity is breached. It is up to the employer to instill confidence that they will be secure, despite potentially exposing colleagues. Employees must believe in the reporting system and that management will take seriously the issues raised. They must also have confidence that they are empowered to help create positive change.
©2023
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