Whistleblowing

Whistleblowing in todays corporate environment is slowly gaining steam around the world. The US has brought in some strong legislation to enable a whistleblowing culture to develop, including the two most key aspect...reward and protection from reprisal. Unfortunately here in Canada, we are woefully behind the times and cannot seem to get some decent legislation out of Ottawa to help foster this type of shift in corporate responsibility.

Surprisingly, most companies who have adopted this model now find this to be a great way to operate, except of course the slimier companies helmed by the folks these programs are meant to uncover. Boards find this a great way to showcase openness and to stem the potential for destructive insider fraud and compliance problems which can decimate and even lead to the bankruptcy of major corporations.

Setting up a good program, even in the absence of direction from Ottawa or the provinces is a great selling point for companies in terms of openness and ethical corporate responsibility, on top of keeping rogue CEOs and CFOs from hitting the self destruct button on a company once fraud has been uncovered. An effective program will enable clear and anonymous messaging options (which can be set up through disinterested third parties via phone or e-mail drop boxes, and ensure that all complaints will be addressed. This then allows for a corporate investigator to come into a case and conduct either a due diligence check to see if further investigation is warranted, or begin a full investigation should the allegations prove to be credible. It is always a good idea to run these investigations openly as much as possible as this is a great motivator for employee and investor confidence, however there are times when covert investigations are required. Reporting chains and authorization should be set up before hand, and reports should be presented to someone who can act on recommendations, such as the legal department or the Board of Directors, but not usually the C-class executives.

There are a number of professionals who can conduct varying investigations in support of whistleblowing activities, including forensic accountants, IT professionals and Private Investigators

Blog post is courtesy Elemental Investigations: Private Investigator Edmonton, an Edmonton, Canada based private investigator agency. They can be found online at www.elementalpi.ca and ask about what can be done to suit your needs