WHISTLE-BLOWING   CORPORATE GOVERNANCE 

Singapore - HR-related issues such as discrimination and work harassment make up approximately 70% of all whistle-blowing allegations, says Jim Burke, CEO of whistle-blower solution provider Global Compliance.

By contrast, business integrity issues, which typically make media headlines, only comprise of approximately 15% of allegations made. These issues include company fraud and other white-collar crimes. Environmental, safety and health offences form approximately 7.5% of the type of allegations heard.

Burke says reporting these HR issues are important, as they help companies build and maintain a strong corporate culture, adding that companies with strong corporate cultures often produce better results over time as well.

"Although the whistle-blower capability is intended to reduce fraud and identify fraud when it does exist, the corporate culture benefits should not be understated," Burke adds.

In addition, Burke adds that the instances of negative reprisals against whistle-blowers has decreased due to several reasons. The first reason is because there has been an increase in the number of regulations which prevents any negative repercussions on whistle-blowing. Secondly, Burke says there is a growing awareness and maturity among corporations which views the identification of fraud or unethical actions as a positive thing.

In addition, he says HR practitioners play a critical role as they should first ensure that there is enough support from the top management for a compliance programme. Secondly, Burke adds that HR should also be responsible for raising awareness of compliance responsibilities among the company's employees.

"And HR  should work hand in glove with the compliance office and other corporate functions in cases where allegations are made to ensure that they are followed up on correctly, and that both the person who makes the allegation and the person who is the subject of the allegation are both treated with respect and privacy."

 

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