UK businesses take ‘weak’ stance on whistleblowers

13/05/2008

Less than half of UK businesses have measures in place to support employees who report business malpractice, a new report has found.

The research, by financial and business advisoryce firm Grant Thornton, put the UK at number 16 in a list of 33 countries who make provision for potential whistleblowers.

Top of the list were Brazilian businesses, with 85% putting measures in place to accommodate employees who report illegal or wrongful activities, with Denmark and Sweden following.

Grant Thornton said whistleblowing has been in the spotlight recently, following plans by the chancellor to provide greater powers to the Financial Services Authority (FSA) to give increased protection to those who report malpractice.

While informants are currently protected by the Public Interest Disclosure Act, which protects against dismissal in most circumstances, attitudes to whistleblowers means many employees are still afraid to speak out.

Alysoun Stewart, head of Grant Thornton's entrepreneurial advisory group, said UK businesses are currently adopting a ‘weak’ stance on whistleblowing.

“Informants who report illegal or wrongful activities including rule breaking, criminal activity, cover-ups and fraud can save businesses millions,” she said.

“Businesses can greatly benefit from introducing measures to accommodate potential informants within their organisation.”

She added that the first step is to provide a secure environment in which whistleblowers will feel safe discussing their suspicions.

“Without sufficient measures in place, whistleblowers can be victimised as informants or traitors rather than a valuable early warning system which can save money and reputations,” she said.