Author: Wayne D. Garris
When to Use
Publicly traded corporations may have a legal obligation to have a whistleblower policy and to maintain a hotline for anonymous reporting. Other organizations may find it prudent to have one.
By having a whistleblower policy, an employer lets employees know that it is committed to doing business legally and ethically. By providing the means for employees to air their concerns or lodge complaints, the employer indicates its willingness to act responsibly and transparently. This policy should be shared with employees and management. Employees should be reassured that they can disclose misconduct without fear of retaliation. Furthermore, the policy emphasizes to all employees the importance of complying with all laws and regulations.