Whistleblowers should not be incentivised with financial payments, according to the European Confederation of Directors’ Associations (ecoDa).
In a statement published this week, ecoDa told companies across Europe, where whistleblowing policies are relatively new, that the corporate reputation of companies would be at risk if they fail to install the right internal practices to manage whistleblowing.
The view from ecoDa comes as the European Commission closes a consultation on the protection of whistleblowers.
EcoDa’s statement said the organisation believes whistleblowing needs clearly defined roles for internal auditors, risk managers and board members.
It added: “Companies should be aware that if they don’t put in place efficient internal processes, the risk is high that their reputation will be damaged in the long run especially in cases of legal practices that prove to be immoral or against the public interest. In no way should whistleblowers be financially incentivised.”
Lutgart Van den Berghe, chair of ecoDa’s policy committee, stressed that “given that the concept of whistleblowing is still new in Europe, employees have to be properly educated on the application of a whistleblowing policy in practice, on data-protection and on what constitutes strategic information”.