ICD fellow encourages corporate whistleblowers

Frank Numann, an independent anti-bribery consultant, discusses the importance of an effective whistleblowing system as a deterrent against corruption during yesterday’s forum organized by the Cebu Chamber of Commerce and Industry.
(CDN PHOTO/TONEE DESPOJO)

Local companies should set up a whistleblowing system to encourage employees to expose corruption and promote corporate governance, an Institute of Corporate Directors (ICD) fellow said yesterday.

Frank D. Numann, an independent anti-bribery consultant and Shell’s former ethics and compliance officer, said only a few companies have set up such a system.

An effective whistleblowing system would involve the board and executives; whistleblower; recipient of the whistle; investigation; suspect; disciplinary action; communication; and review and improvement, he said.

Numann stressed it is important that whistleblowers are assured of confidentiality, non-retaliation for whistleblowing done in good faith, speedy investigation and disciplinary action.

“The whistleblowers feel they are sticking out their necks and are too exposed. They will only do so if they see that there is commitment from the board and the executives,” Numann told members of the Cebu Chamber of Commerce and Industry (CCCI) in a forum yesterday.

He also said the system should allow a whistleblower to give tips anonymously.

In other countries, he said some companies have set up telephone lines for anonymous tips. Whistleblowers are given a PIN that they can use to log into the sytem to get updates on actions taken by the board.

“Whistleblowers need not to be sure of facts. They can give tips based on suspicions. They are not investigators. Only the investigators do investigation because if the whistleblower investigates, the facts will all present the suspect as guilty,” Numann said.

The recipient of the whistle, who may be inhouse or outsourced, is responsible for recording the data obectively. He must also be able to reassure confidentiality and advise on how the whistleblower can follow up on his case.

“The recipient should quickly pass the data to the investigator, who are forensic professionals with ad hoc support from the HR (human resource) and legal,” he added.

On establishing a company culture, Numann said the board and the executives always sets the tone of what is right and what is unacceptable in a company.

“Employees most of the time don’t listen to what you say. They see what you do and base judgment on your behavior so the role modeling is very important. This requires a very clear Code of Conduct,” he said.