LEON VAN VUUREN: Whistle-blowing is not a cure-all for unethical behaviour

In many cultures around the world, including SA, whistle-blowing is strongly discouraged. Those who do report are often ostracised and subjected to victimisation by their social groups. Instances of retaliation against whistle-blowers and their families are common, and their lives are invariably altered, often irreversibly, after their actions come to light. In organisational settings, whistle-blowing rarely ends well — trust, reputations, careers and lives are frequently shattered. 

Whistle-blowing is a reactive approach to ethics management, and some organisations rely on it excessively, especially when it is used in isolation or alongside insufficient proactive interventions. Yet when whistle-blowing becomes necessary, it signifies a failure in organisational culture. This can foster a fear-driven environment that is detrimental to sustainable organisational development. Employees tend to leave when trust in the organisation and its leadership diminishes. 

Organisations that lean heavily on whistle-blowing often overlook the fact that such expectations contradict what employees have been taught not to do since childhood. Even in organisations with mature ethical cultures, statements like “we encourage whistle-blowing and will protect you” are met with cynicism. Moreover, whistle-blowing is often misused as a management tool, with executives immediately demanding to know the whistle-blower’s identity or resorting to knee-jerk reactions such as changing policies or suspending the whistle-blower. 

Employees usually report wrongdoing to their supervisors or through formal reporting channels managed by external providers. However, the worst-case scenario for organisations is when whistle-blowers bypass internal channels and contact law enforcement or the media directly. This usually occurs when they do not believe the organisation will act appropriately to a whistle-blowing report. 

Furthermore, many employees are unsure about how to blow the whistle, and there is often confusion between simply raising ethical concerns and engaging in formal whistle-blowing. Malicious reporting is also not uncommon, often driven by personal vendettas or perceived favouritism.

Reports of misconduct are often mishandled by managers who lack the necessary training to effectively address ethical concerns, protect the whistle-blower’s identity and maintain the confidentiality of the report.

But let’s move on from the dark side of whistle-blowing. While there are inevitably individuals who engage in misconduct, there are constructive approaches to dealing with such situations. Whistle-blowing does play a role in this regard, but it must be employed and managed appropriately to be effective.

Numerous proactive ethics management strategies have proved effective in promoting positive ethical standards. These include: 

• Creating a maturing ethical culture over time. This is the most crucial determinant for safe and effective whistle-blowing and entails a concerted effort by all, particularly leadership.
• Ensuring that the formal whistle-blowing facility is operated by an external service provider. This ensures that reports are managed with sensitivity, confidentiality and anonymity.
• Fostering a culture of speaking up within the organisation, allowing employees to freely voice ethical concerns. Additionally, establish a formal ethics advice desk to address uncertainties. 
• Empowering the ethics office and enabling ethics officers to enforce whistle-blowing policies and efficiently manage cases submitted by external service providers. These providers should be accredited by an independent third-party assessor. 
• Establishing a clear reporting pathway, with reports initially submitted to the organisation’s ethics office or internal audit function, which should evaluate the information provided and determine who should investigate the matter. Subsequently, other appropriate functions, such as human resources, risk management or forensic investigations, should become involved. The aim should be to limit the number of individuals handling reports. 
• Taking all necessary measures to safeguard whistle-blowers from potential emotional or physical harm. 
• Providing training for line managers to confidently and effectively manage reports they receive and ensure protection for those who raise minor ethics concerns or report serious transgressions. 
• Offering training to employees on where to blow the whistle and what information should be included as a minimum in their reports. 
• Maintaining proper, frequent and confidential communication with whistle-blowers once they have reported. 

Whistle-blowing is not the magic cure for ethical ills, but it does hold a valid and significant position in the broader ethics framework. As a reactive measure to manage ethics, it should ideally serve as a final option for individuals who wish to report unethical conduct. Preferably, issues should first be addressed internally.

If an organisation’s ethical culture is mature enough to accommodate whistle-blowing without instilling fear, and if the necessary structures are in place to ensure a safe reporting environment, whistle-blowing can contribute to fostering sustainable ethical growth within organisations.

The key takeaway regarding whistle-blowing is simple: employ a variety of strategies rather than relying solely on one approach. Otherwise, if everything looks like a nail, the solution will always be a hammer. 

• Prof van Vuuren is executive director: organisational ethics with The Ethics Institute.