Vernon Dennis is head of business advisory at Howard Kennedy
Whistleblowing is a company’s early-warning system, uncovering issues that, while they are still containable, can limit financial loss, litigation exposure and protect brand and reputation. Those who do speak up need to be assured that they will not suffer retaliation, and their complaint will not be met with indifference or a box-ticking investigation.
Boards should treat whistleblowing as an embedded element of their governance, not simply the provision of a hotline that sits in HR.
A credible framework typically includes clear policy and tone set from the top; multiple reporting routes — line management, compliance, independent hotlines; confidentiality and data handling controls; protection against retaliation; and an investigation model that is fast, fair and properly resourced.
Just as important is feedback, with clear evidence that speaking up leads to action, not career damage. A “speak-up” culture can prevent a problem becoming a scandal, allowing management to respond and remediate.
Under UK rules, workers who make a qualifying “protected disclosure” are protected from dismissal or detriment. However, gaps remain, particularly for the self-employed, some non-executive directors and other officeholders.
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