Whistleblowing Directive: next step in compliance and business ethics 

Approved in 2021, the EU Whistleblowing Directive is a key tool in fighting malpractice and increasing compliance in organisations. In turn, it will also protect whistleblowers in cases of fraud, corruption, and other wrongdoings in the corporate world. Companies with less than 250 employees have until December 17, 2023, to adapt to the requirements of the new regulations.  

Compliance and the whistleblowing directive 

To ensure regulatory compliance, companies and organisations have two main tools: Internal whistleblowing channels to report misconduct, and corporate compliance regulations.  

What is corporate compliance? 

The World Compliance Association defines corporate compliance as “a set of procedures and best practices adopted by organisations to identify and classify the operational and legal risks they face, as well as to establish internal mechanisms for prevention, management, control and reaction against the same”. Compliance ensures adhering to internal and external regulations that affect the organisation. Therefore, implementing such compliance procedures in organisations will increase control over activities and prevent future conflicts of legal nature. 

Compliance as a trend in organisations 

Trust, transparency in management, and good corporate governance are concepts that are increasingly on the rise in the business world. Currently, being able to claim an organisation is transparent and reliable, is as important (or maybe even more important?) than talking about other types of business assets or characteristics. 

Compliance responds to the need of companies to implement and normalize moral values and good business practices – this includes whistleblowing compliance. In addition, it is an extremely important administrative and legal tool to ensure compliance with legislation and regulations.  

ISO certifications and corporate compliance 

Currently, there are various certifications to control and standardize compliance in companies. These certifications, such as ISO 37301, contain requirements, formulas, and guidelines to implement a compliance system in the organisation. Another certification to keep in mind when talking about internal reporting channels is ISO 37002:2021, for whistleblowing management systems. 

Certification establishes the requirements to identify obligations and assess risks. In addition, it helps to promote and reinforce a culture of commitment and regulatory compliance in the company. Finally, it offers a possibility to show stakeholders and third parties the efforts made by the organisation, as well as the commitment to regulatory and compliance. 

Would you like to learn more about whistleblowing compliance and discuss a whistleblowing system for your organisation? Please book a free demo!