Search results
1 – 10 of 118
To describe the new EU Whistleblowing Directive and its implications.
Abstract
Purpose
To describe the new EU Whistleblowing Directive and its implications.
Design/methodology/approach
Describes organizations to which the Directive applies, the scope of reportable whistleblowing concerns, whistleblowers’ reporting channels and mechanisms, whistleblower protections, how organizations should respond to whistleblower reports and how organizations should prepare for the new rules.
Findings
The new Directive will require Member States to create rules for organizations with more than 50 workers, will mandate such organizations to implement whistleblowing hotlines for reporting a broad range of EU law violations, and will contain minimum standards on how to respond to and handle any concerns raised by whistleblowers.
Practical implications
Organizations in the EU can and should start taking initial steps to prepare for the new rules as soon as possible. There will likely be some differences among whistleblower rules in individual EU Member States.
Originality/value
Practical guidance from experienced corporate, technology, media, telecommunications and compliance lawyer.
Details
Keywords
The purpose of this study is to develop a profile of whistleblowers and to determine whether whistleblowing legislation would encourage those individuals to bring to light…
Abstract
Purpose
The purpose of this study is to develop a profile of whistleblowers and to determine whether whistleblowing legislation would encourage those individuals to bring to light some illegal or unethical behaviour that otherwise would remain in the shadows.
Design/methodology/approach
Having identified whistleblowing correlation, a survey was carried out in Cyprus of actual whistleblowers and could-have-been whistleblowers.
Findings
Males between 46 and55 years of age, regardless of whether they have dependents or hold senior positions in organizations are significantly more likely to blow the whistle. However, could-have-been whistleblowers did not go ahead because they felt that the authorities would not act on their information.
Research limitations/implications
Because of the sensitive nature of the research topic and the fact that only whistleblowers or intended whistleblowers could participate in the study, the sample size is limited as a result. This, in turn, limits both the number of respondents in each category (actual and intended) as well as constrains the statistical analysis that could be carried out on the data.
Practical implications
It remains to be seen whether EU Member States shall implement the European Directive 2019/1937 on the protection of persons who report breaches of Union Law, in its entirety by the due date, namely December 2021.
Originality/value
This study provides a literature review of whistleblowing and reports an original survey against the backdrop of the European Directive.
Details
Keywords
Employment law recognised the value of whistleblowing with the enactment of the Public Interest Disclosure Act 1998, protecting a ‘worker’ against dismissal and…
Abstract
Employment law recognised the value of whistleblowing with the enactment of the Public Interest Disclosure Act 1998, protecting a ‘worker’ against dismissal and victimisation. Whistleblowers are particularly vulnerable in the gig economy as they may fall outside the statutory definition of ‘worker’ for the purposes of the whistleblowing legislation. This makes a study of whistleblowing in the gig economy pertinent. This chapter explores the statutory definition of ‘worker’ with regard to the current whistleblowing provisions and considers the barriers it presents for gig workers. Judicial interpretation of the definition is examined through an analysis of recent case law that shows much inconsistency and a conflict of judicial approach. The resulting blurred boundaries of the legal term leave a gig worker uncertain as to the level of their protection for blowing the whistle. The need for reform to protect individuals in a wide range of working relationships is clear. It is argued that the new EU Whistleblowing Directive, in protecting ‘work-related activity’, provides better protection for all whistleblowers. The role of human rights in extending the status of work is also advanced. Finally, the implications of developments in this area for key stakeholders in the gig economy are considered highlighting the importance of creative new approaches to give voice to all workers.
Details
Keywords
Albert Puni and Sam Kris Hilton
The purpose of this paper is to investigate the effect of power distance culture (PDC) on whistleblowing intentions (WI) by examining the moderating effect of gender on…
Abstract
Purpose
The purpose of this paper is to investigate the effect of power distance culture (PDC) on whistleblowing intentions (WI) by examining the moderating effect of gender on the causal relationships.
Design/methodology/approach
The study used descriptive and cross-sectional survey design. Data were obtained from 300 employees of the selected organizations in Ghana and analyzed by using descriptive statistics, correlational and hierarchical regression techniques.
Findings
The results indicate that there is a significant relationship between PDC and WI, and such relationship is moderated by gender. The study also revealed that high PDC is the prevailing culture in the organizations surveyed, indicating low tendency of reporting corporate wrongdoing. However, the result of the moderation analysis indicates being a female worker in a PDC has a stronger influence on WI than being a male. Additionally, whistleblowers are likely to report their coworkers than leaders in high PDC organizations, but they are rather likely to report their leaders than coworkers in low PDC organizations.
Originality/value
This paper makes a significant contribution to the existing whistleblowing literature by establishing how gender moderates the influence of organizational culture on whistleblowing and recommends how to improve organizational ethos to facilitate whistleblowing in high-power distance societies.
Details
Keywords
Lütfihak Alpkan, Melisa Karabay, İrge Şener, Meral Elçi and Bora Yıldız
The purpose of this paper is to explain the effect of perceived ethical leadership and perceived distributive justice on internal whistleblowing intention through trust in…
Abstract
Purpose
The purpose of this paper is to explain the effect of perceived ethical leadership and perceived distributive justice on internal whistleblowing intention through trust in leader as a mediator.
Design/methodology/approach
Following an empirical design, data were collected from 1,296 employees of Turkish financial institutions, located in Istanbul. To test four hypotheses structural equation modelling was applied.
Findings
Results reveal that trust in a leader fully mediates the positive effects of both ethical leadership and distributive justice on the internal whistleblowing intention.
Originality/value
This study enhances the understanding of the ethical leadership perception and distributive justice affecting the internal whistleblowing intention in Turkey that is a developing country. Although numerous studies on whistleblowing have been conducted, this study’s originality and contribution lay in the examination of trust in the leader as a missing link between the direct relations.
Details
Keywords
The purpose of this paper is to review inadequacies of anti-money laundering (AML) and whistleblowing laws particularly in the UK financial services sector and suggest…
Abstract
Purpose
The purpose of this paper is to review inadequacies of anti-money laundering (AML) and whistleblowing laws particularly in the UK financial services sector and suggest various reforms initiatives.
Design/methodology/approach
The article relies extensively on secondary data analysis including extensive literature review, analysis of applicable cases and evaluation of current whistleblowing and AML laws.
Findings
The preponderance of defensive reporting particularly in the financial services sector appears to blunt the effectiveness of AML laws in the UK. Working adults generally are unaware or unfamiliar with whistleblowing laws, whereas the laws themselves are also deficient in some ways even though they have been adopted and adapted in various other jurisdictions because of its perceived comprehensiveness. Preliminary indications from money laundering scandals demonstrate how and why early disclosures of wrongdoings through whistleblowing might have helped to reduce the magnitude of the adverse consequences and hence the importance of whistleblowing in the fight against money laundering.
Originality/value
This article provides the argument that while money laundering is perpetuated by hard-core criminals, it could be aided along by others motivated by profits in the financial system and that those closes to the process and in particular workers when encountering such activities should be encouraged to report these via appropriate channels. This together with further revamping of the suspicious activity reports procedures required under AML laws is argued to be able to contribute to the reduction of defensive reporting thereby enabling enforcement agencies to have more effective focus on remedial actions.
Details
Keywords
The purpose of this paper was to investigate the motivation behind whistleblowing, the tussle between internal and external whistleblowing and the extent whistleblowing…
Abstract
Purpose
The purpose of this paper was to investigate the motivation behind whistleblowing, the tussle between internal and external whistleblowing and the extent whistleblowing laws in the UK and the USA are able to provide protection to whistleblowers. While employees need to be protected against unfair retaliations for making legitimate disclosure, employers seek to prevent irreparable damage from abusive disclosure of sensitive corporate information.
Design/methodology/approach
A mix of legal examination and case study analysis of recent whistleblowing cases in the financial services sector is used in this study. It ergo relies mainly on primary data from recent applicable legislations and secondary data available in the public domain, journal articles, media reports and related academic texts.
Findings
The study’s findings and analysis suggest that whistleblowing law in the UK, namely, the Public Interest Disclosure Act 1998 appears unable to promote effective whistleblowing awareness among working adults and adequate protection to whistleblowers. The situation is broadly similar in the USA with reports of serious employer retaliations though bounty awards available there have brought some relief to whistleblowers. Consequently, whistleblowing to help safeguard public interest is not appropriately encouraged and protected, suggesting the need for further reform initiatives.
Research limitations/implications
The research mitigates the limits of primary secondary data analysis through triangulation of different sources of data and from the use of different perspectives. This paper suggests that whistleblowing laws in the UK and the USA, while assuring protection for workers for reporting wrongdoings internally or externally to prescribed regulatory agencies, can in theory help the early detection of corporate wrongdoings like those witnessed in the 2007 global financial crisis as employees are likely to first witness such activities. In practice, because of fear of employer reprisals and other social and economic costs, whistleblowers frequently hesitated until way too late. The findings suggest that business corporations missed such occasions to beef up their internal controls and demonstration of their commitment to ethical governance; and ergo would need to address such issues more effectively.
Originality/value
The paper contributes insights from a combined corporate management and legal analysis perspective. It suggests that this type of approach and analysis of whistleblowing would be helpful to employers, employees, policymakers and regulators, as whistleblowing is a complex process involving not just the law, but social, psychological and economic considerations. The paper, by providing further insights on the motivations behind whistleblowing including other considerations as well as the impact of current whistleblowing laws in the UK and the USA, supports earlier suggestions on the lack of whistleblowing contributions to various current financial scandals until way too late and the need to review these laws and current internal corporate controls reporting practices.
Details
Keywords
Dina Clark, Teng-Shih Wang, Mike Shapeero, A. Blair Staley, Natalia Ermasova and Mark Usry
This chapter explores cultural factors that influence the propensity to blow-the-whistle in China, Taiwan, Russia, and the United States. This study found that culture and…
Abstract
This chapter explores cultural factors that influence the propensity to blow-the-whistle in China, Taiwan, Russia, and the United States. This study found that culture and traditions have strong impact on the propensity of whistleblowing. This research analyzed 1,541 working adults in China, Taiwan, Russia, and the United States. Statistical analysis of self-developed questionnaires reveal that: (a) Americans have a greater disposition to engage in whistleblowing than Chinese, Taiwanese, and Russian; (b) Americans have a smallest level of fear of retaliation to whistleblowers than Chinese, Taiwanese, and Russian; (c) the intention of Chinese, American, and Taiwanese to whistle-blow is influenced to a greater degree by position of wrongdoers than that of Russian; and (d) guanxi (personal relationships or networks) has a greater effect on the propensity to whistle-blow for Chinese and Taiwanese than for Americans and Russian. Auditors and managers need to be aware that employees in different cultures respond differently to factors that influence whistleblowing activities. The results of this study will help auditors and managers better assess risk and the effectiveness of internal controls and ethical standards.
Details