6 Benefits of Whistleblowing

6 Benefits of Whistleblowing

April 19, 2022

In a busy workplace with many employees, it is easy for problems that may bother individuals or teams not to be noticed through appropriate channels. Among other things, due to the employees' fear of the consequences if they speak out and the lack of clear structures.

When this happens, the well-being of employees can be affected as it can make them feel uncomfortable in the workplace, and they may need support to feel that they can say no about this. In this situation, as in many others, whistleblowing channels are needed so that employees dare to report misconduct. Below we go through six other benefits of whistleblowing, in addition to compliance with the new whistleblower law of course.

1. Whistleblowing prevents negative behavior before it escalates

Most incidents of inappropriate or incompatible behavior begin as something small - but then tend to increase over time. For example, a colleague can start by "cheating" in their expense report to get a few extra dollars a month.

But once the colleague realizes that they are getting away with it, they can start pushing the boundaries and stealing even more. By enabling easy reporting of such misconduct as soon as they are discovered or suspected, it can ultimately save the organization a significant amount of money. This is also true for other negative behaviors in the workplace that can be prevented in good time.

Visslan offers a flexible and user-friendly whistleblower solution, policy and case management that offers complete anonymity, while the administrative burden is minimal. Read more about Visslan's services.

2. Whistleblowing reduces losses

When illegal activities are reported, it enables a company to address the problem quickly and prevent it from happening again in the future. In this way, companies avoid painful losses that are harmful to everyone, from employees to customers, suppliers and profitability.

According to ACFE's Report to the Nations 2022, organizations lose on average 5% of their turnover to fraud, while organizations with an effective reporting channel have half as large losses. Thus, as an organization, you can theoretically save 2.5% of your turnover just by detecting fraud earlier.

3. Whistleblowing favors communication & trust

Researchers have found that companies with a strong culture of internal reporting, and which receive more internal reports than other organizations in the same industry, achieve better business results in general. They also see fewer lawsuits, less settlements when litigation occurs, more efficient operations and even fewer negative headlines in the media.

Also read: 3 essential steps to create a Speak Up-culture

4. Whistleblowing increases awareness

Without whistleblowers, we can be unaware of illegal or unethical things happening under our noses. The information they provide, regardless of the degree or nature of it, can increase awareness of issues and problems within an organization that need to be addressed.

With such knowledge in hand, a company can learn, grow and prosper. That is why a proper, efficient and user-friendly whistleblower system is crucial for dealing with violations in a fast and constructive way.

5. Whistleblowing provides unique insights

Whistleblowing gives decision makers a unique perspective on the company - a perspective they could not get in any other way. There are many aspects of a business that company boards cannot truthfully decide without the support of whistleblowers.

However, the number of whistleblowers a company has in a single year cannot easily be interpreted as success or failure. On the one hand, more whistleblowers can mean an improvement in the company's employee policy - and on the other hand, it can mean serious issues that slowly arise. The important thing, however, is that it inspires a culture of discussion and exchange of thoughts and ideas.

Also read: 5 Reasons to Implement a Whistleblower Solution

6. Whistleblowing leads to happier employees

Transparency and accountability enable the company to function efficiently. Being open to your employees cultivates commitment and trust. This in turn allows them to feel happy, comfortable and secure within the company.

Having problems with illegal and unethical activities degrades the "image" of a brand. This leads to the brand's values ​​and mission being questioned. This can cause mistrust from employees as well as customers and partners. Whistleblowing allows organizations to address the issues directly to ensure that its reputation is in line with all of its principles. 

Legal requirement & opportunity

As this blog post shows, whistleblowing has several benefits that make any company want (and need) to implement a whistleblower function. With the new whistleblower act, it will also be a requirement for all companies with over 50 employees to have whistleblower solutions that meet the law's requirements after 17 December 2023. See the Whistleblower Act as an opportunity to take advantage of the above-mentioned benefits!

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