A whistleblower system acts as a part of perfect internal control policy for anonymous reporting of wrongdoings, which helps lowering the retaliation risk as a consequence of whistleblowing.
Whistleblowing is just not the practice of reporting unethical and wrongdoings related to a business’s operations. It is more about framing a strong as well as anonymous reporting mechanism for employees and other stakeholders. It is the system of employee empowerment and education as it helps in making and managing a strong defense base for all loyal employees, who have so much to convey to their management. As a defense mechanism, Whistleblower protection hotline can be used against wrongdoers, overriding the secular internal controls and identifying the problems areas or people inside the periphery of the company. Therefore, implementing whistleblowing system at the workplace is a rising necessity these days.
Whistleblowing, as an internal risk management mechanism, is a system of bringing continuous improvements in internal control systems. Internal controls are meant to keep the company put on the path of profitability and objectivity throughout its operations. Internal controls are also important to tap the problems or issues hindering the competition and goals. Through internal goals, the upper management tends to bring changes and improvements in competitive and sustainable environments while, determining its future growth estimates. All this makes internal controls, a part of effective problem solution for conflicts, queries and suspicions. Making whistleblowing, an integral part of internal control, ensures a timely resolution of potential issues, misconducts and frauds that might impact the company’s goodwill in no time.
A well planned and thoughtful whistleblowing system is the best way to strengthen your company’s internal control system. It helps in designing a system of internal control that governs the risks for fraud and irregularities in a timely and secure manner. After the design, format and implementation of whistleblowing system is decided, efforts are put to float it throughout its length and breadth via effective communication channels like company website, blogs, advertisements etc. Acting as a safety net, whistleblowing system can be customized and personalized depending on the size and need of the company.
Putting a whistleblowing system as a part of company’s internal controls indicates enhanced risk management which further means greater control on loopholes, misconducts and irregularities. A better and healthy internal control is powerful and strong determinant for exercising employee benefits and happiness policies. It can be crucial to make a system that assures customer happiness and satisfaction as they are being heard and taken care of.
Whistleblowing system can only be effective if it is treated as an integral part of a company’s internal control policies. Without having a solid backing from internal controls, no matter how conducive and progressive whistleblowing laws are, they might fail to serve the purpose. So, whistleblowing laws at a company need strong backing up of its internal controls management. Therefore, formulating a good whistleblowing system depends on the success and ability of company’s internal control management. Is it strong and capable enough to get you the real insights? The question needs to be thought and addressed patiently for seeking the suitable answers.