On December 17, 2021, the definitive transposition in Spain of European Union Directive 2019/1937 on whistleblower protection will take place. Known as the Whistleblowing Directive, it will require companies to implement a Whistleblowing Channel.

Specifically, it will require the implementation of internal reporting channels and procedures for reporting, monitoring, and handling complaints, with certain safeguards.

The new Directive will make it easier, thanks to the promotion of technological tools and data management, to implement “new Compliance systems that will strengthen and improve controls”, while ensuring and guaranteeing the protection of whistleblowers.

The purpose of enabling an Ethics or Whistleblowing Channel is to contribute to the continuous improvement of companies’ processes and internal policies for managing and controlling illegal or irregular conduct that may occur within them, instilling a culture of ethics across the business world, as well as increasing information about what is happening within the company.

The mandatory nature of the new Directive will affect any legal entity, both public and private, with more than 50 employees.

Key features of a Whistleblowing or Ethics Channel

The whistleblowing channel is a tool that can be managed internally or externally by third parties. It can also be anonymous or identified.

However, if there is a genuine culture of ethics and this is not merely a cosmetic exercise, the external and anonymous whistleblowing channel, managed by professionals trained in private investigation, Compliance, and Cybersecurity, is the one that offers the greatest credibility and safeguards. Whistleblower and company operate with the same objectives: to achieve respect for a culture of business ethics.

Types of reports that can be made through a Whistleblowing Channel

• Workplace harassment situations
• Discrimination or bullying
• Cases of influence peddling
• Improper use of company resources
• Contractual breaches involving employees
• In general, any conduct by employees, managers, customers, suppliers, seasonal workers, etc. that contravenes the principles set out in the company’s Code of Ethics

The obligation to implement a Whistleblowing Channel will pose a challenge for companies, especially SMEs, which will have to decide who will be responsible for managing these cases and how to implement them correctly.

A safeguard for the whistleblower and for the companies that are the subject of the report.

This need to have a whistleblowing channel is already regulated in the financial sector, in matters of money laundering, anti-money laundering, and the financing of terrorism. However, with the new directive, the wording and mandatory nature of the whistleblowing channel are rewritten in order to guarantee the protection of the whistleblower.

In the area of criminal compliance, the importance of having a whistleblowing channel is a key element of any organisation’s corporate compliance, giving it legal effectiveness.

Having a whistleblowing channel can be a key factor for the company in avoiding or mitigating penalties. These are some cases of penalty mitigation thanks to compliance programmes:

Etika 360, the best option for a trusted ethics channel

The option of having an external and anonymous Ethics or Whistleblowing Channel is the most recommended option for SMEs and companies.

It ensures neutrality, objectivity, and effectiveness in handling the reports received, preventing the process of two-way communication between channel managers and the company officers to whom the alerts received must be communicated from being compromised by personal or professional interests.

Etika 360 offers one of the best solutions on the market in this regard: it is a company made up of private security and cybersecurity professionals. From the combination of these two elements come the GEAS (External Alert Managers), with greater capacity to analyse the reports received, as well as to propose resolutions. All of this is delivered under the strictest security and confidentiality conditions, further reinforced by being managed through proprietary software.

If you need advice or more information on how to set up a Whistleblowing Channel in your company we recommend contacting Etika 360.