Canadian HR Reporter

CANADIAN HR REPORTER November 28, 2016 20 FEATURES EMPLOYEE-HR EDUCATION Setting up an internal reporting program Employees should be properly informed of what types of issues to report By Hilary Davies I n Canada, whistleblowers often only come to public at- tention when the reporting is external and a sensational story hits the news. At this point, the reputational damage to an orga- nization is already done and the opportunity to mitigate the ef- fects may have disappeared. External reporting also frequently involves illegal or unethical activ- ity that may have been occurring for a long period of time. e re- porting of malfeasance within an organization may be external be- cause the organization does not have an effective internal report- ing mechanism. There are definitely skeptics who question why anyone would want to encourage whistleblow- ing. But looking at recent stories in the news, in the financial and pharmaceutical industries, for ex- ample, it's easy to see the value of an internal program that can iden- tify and mitigate a problem before it becomes public. "Whistleblowing" is the act of reporting suspected wrongdo- ing, mismanagement and unethi- cal conduct in an organization. It is one of the best methods for identifying activities that could potentially cause harm to an or- ganization, the public interest, or the health and safety of the envi- ronment. e information gained from encouraging employees to report issues or concerns can be invaluable to employers seeking to prevent potential damages. For these and other reasons, government bodies, corporations and non-profit associations are looking for ways to proactively encourage a "speak-up" culture that enables employees to voice any concerns, according to the 2014 International Handbook on Whistleblowing Research and the 2012 article "Measuring the Cost of Fraud: An Opportunity for the New Competitive Advantage" in the Journal of Financial Crime. Having an effective ethical re- porting system that encourages employees or clients to report wrongdoing is an important com- ponent of overall corporate gov- ernance. International research has shown that whistleblow- ing activities are one of the best mechanisms for organizations to detect internal wrongdoing and improve overall organizational effectiveness, according to the Journal of Financial Crime ar- ticle. A workplace culture that promotes speaking up and report- ing of wrongdoing can empower employees to take an active role in their workplace, improve share- holder confidence and help create an environment where employees feel free to contribute to the ad- vancement of the organization. Early detection of potentially harmful behaviour, whether it is intentional or not, can help an organization stop the behaviour early on and prevent it from re- occurring. Even minor incidents that occur and are ignored can lead to much bigger issues and cause more harmful behaviour. Organizations that ignore harm- ful behaviour are risking financial loss, legal liabilities, reputational damage and even blacklisting. Setting up a system Developing an effective whistle- blowing system can be a difficult process but with the right tools and plan in place, the results can make a big difference. e first step is to establish the overall goals and objectives of the system. e system should be a fair process that seeks to eliminate potential bias and is seen as impartial by all levels of the organization. A well-planned and executed system should be guided by effec- tive and professional management in its daily operations, and include an oversight process that helps to ensure the goals and objectives are achieved. When necessary, outside expertise should be con- sidered to remove any appearance of bias. Creating a program that is arm's length from management and executives will help to create trust and credibility. Employers that are committed to cultivating a positive, speak-up culture should clearly define what people should look for and re- port. is requires direction and a clearly defined scope and pro- cedures for employees to follow. Often, organizations will define and articulate a code of conduct that helps define acceptable be- haviour and provides guidance to employees. Employees should be properly informed of what types of issues to report, where they can go for advice and informa- tion about ethical behaviour, and how they can make a report. Es- tablishing and clearly articulating the expectations will help create a foundation for the program. One of the most important components of a successful sys- tem is that the employees believe it will work. Employees are more likely to pass along information if they have confidence that by reporting wrongdoing, their con- cerns will be taken seriously, and their actions will make a positive change. This belief begins at the top with the support and active dem- onstration of ethical behaviour from senior executives. e ex- ecutives must clearly show their support of the program, promote and display ethical behaviour, and ensure there is awareness among employees of how the program works, the procedures involved, and the protections put in place for any whistleblower. A main concern for many whis- tleblowers is the potential for re- prisal. ere have been well-doc- umented cases of reprisal against whistleblowers including loss of their job, financial hardship and psychological harm. Employees who fear they may experience re- taliation from fellow employees or the organization's leadership are less likely to report instances of wrongdoing. As a result, organizations must help ensure retaliation does not take place and that the system itself is evaluated periodically to give insight into its effective- ness to avoid any potential issues. Offering a confidential method of reporting can alleviate these concerns. It is also important to review each case and help ensure any negative behaviour toward a whistleblower is addressed imme- diately and stopped. Although the elements of a whistleblowing system may vary depending on an organization's size and business, there are com- mon critical elements and recom- mendations for an appropriate implementation approach. Whis- tleblowing systems can become a valuable part of a comprehensive occupational health and safety management strategy that pro- motes accountability and gives workers a voice and influence within their workplace. Ultimately, an effective internal reporting system can help both the organization and its employ- ees. It allows an organization to proactively address any behaviour that is contrary to the policies and procedures of the organization, and gives employees confidence that their concerns will be appro- priately addressed. Hilary Davies is project manager, environment and climate change, at CSA Group in Ottawa. Choosing right platform crucial Credit: Lightspring (Shutterstock) model with deep, ongoing con- sultation to ensure the program meets the company's needs now and going forward. How will data be protected? As recognition programs are closely linked to and informed by employee and company data, secu- rity should be a top concern. e right platform should leverage ISO 27001, the highest security stan- dard for software providers, re- quiring an annual three-stage au- dit. Working with an ISO-certified recognition platform provider will help get buy-in from IT security stakeholders, while keeping data completely safe. Will employees like the platform? Research suggests an effective recognition program is one in which each employee receives at least one recognition per week. But to achieve this success, the platform must be intuitive and easy to use, and most leading rec- ognition platforms base the user experience on the familiar social media "newsfeed" model for this reason. What's more, having the ability to share recognition beyond inter- nal platforms onto the employee's broader social networks can help extend the reach and impact of these efforts and work to dem- onstrate the employer's commit- ment to a culture of recognition publicly. In essence, vendors should be able to show that their solutions result in high levels of employee adoption, with at least an 80 per cent average across all programs. With strong adoption, it's a given that recognition frequency will follow. Making recognition part of company culture With a robust employee recog- nition program in place, organi- zations should see a number of positive results, from increased engagement and productivity, to an enhanced employer brand. But rather than merely automating a process through online forms, the best recognition and awards plat- forms are those that reinvent the end-to-end experience, making recognition part of the daily fabric of employees' lives and something they enjoy doing. By evaluating different provid- ers and their offerings, companies can better determine which solu- tion can best help to reinforce a culture of recognition that drives real business outcomes. Vanessa Brangwyn is vice-president of customer success at Achievers in Toronto. 6 WAYS < pg. 19

• Cover