An individual in an organisation who makes disclosures in the public interest about dangerous or illegal activities, in order that the misconduct or perceived misconduct can be addressed, is a whistleblower. Whistleblowing can either occur internally within the employing organisation or externally, and should not be used as a method of resolving a personal complaint or grievance.
Featured items
- Should I blow the whistle?
-
An individual in an organisation who is thinking about "blowing the whistle" will need to consider, amongst other things, how best to raise the concern in the public interest so that it will be properly addressed, while at the same time minimising any potential risk to himself.
In general, an individual in an organisation should discuss the matter internally first, using all appropriate channels, and then resort to going outside the organisation.
If you are concerned about possible misconduct, you might find the following considerations helpful in deciding how to proceed:
- Is it a genuine concern or might there be an innocent explanation?
- Who is affected and how?
- What are the risks attached to the misconduct?
- How serious or imminent are those risks?
- Does the organisation have a whistleblowing policy?
- What guidance and advice does the Institute provide? What is the risk of professional disciplinary action?
- What are the options for raising the concern internally or externally?
- Has the concern been raised and if so, how and who with? What was the response?
- Are there any other options?
- Is there legal protection for whistleblowing?
Where to get advice and assistance
Ethics Advisory Service
The Ethics Advisory Service can provide advice on the specific guidance that applies to members of the ICAEW via its helpline +44 (0)1908 248 258 or email ethics@icaew.com
Public Concern at Work (PCAW)
Public Concern at Work (PCAW) is a charity concerned with whistleblowing issues. Their helpline +44 (0)20 7404 6609 and email helpline@pcaw.co.uk offers free and confidential advice to anyone about misconduct at work who is not sure whether or how to raise their concerns. PCAW aims to help enquirers to identify how best to raise the concern while minimising any risk to the whistleblower and maximising the chances for the misconduct to be properly addressed.
The Law Society
You may want to seek legal advice on your position. The Law Society website is helpful in drawing up a shortlist of appropriate firms.
- Why are whistleblowing procedures important?
-
Whistleblowing informs those who need to know about dangerous or illegal activities that affects others and gives them an opportunity to address the issue. Therefore, whistleblowing protects individuals and sometimes saves lives.
Setting up formal whistleblowing procedures within an organisation strengthens corporate governance and ethics in the organisation as well as being a useful risk management tool.
Whistleblowing procedures in an organisation encourages individuals to disclose concerns using appropriate channels before these concerns become a serious problem, damaging an organisation's reputation through negative publicity, regulatory investigation, fines and/or compensation.
- FRC combined code on corporate governance
-
The UK Financial Reporting Council (FRC) publish the Combined Code on Corporate Governance, for listed companies. The 2006 edition of the Code includes a provision on whistleblowing. As at June 2007, the Code is under review, but this provision is not expected to change.
Provision C 3.4 of the revised Code states:
"The audit committee should review arrangements by which staff of the company may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other matters. The audit committee's objective should be to ensure that arrangements are in place for the proportionate and independent investigation of such matters and for appropriate follow-up action."
Our booklet Whistleblowing arrangements is part of our series of guidance for audit committees to assist non-executive directors in reviewing a company's internal whistleblowing procedures.
The booklet provides background information on whistleblowing requirements, the key aspects of a whistleblowing procedure, and examples of activities which may be undertaken by audit committees to fulfil the review requirement in the revised Combined Code and associated guidance.
Key documents
Accountants in business or practice may have statutory or contractual obligations to report to a regulator or other third party or to SOCA under the Anti-Money Laundering requirements. They may also whistle-blow to a third party where it would be in the public interest to do so, even they have no legal obligation to do so. This right is discussed in the Guidance Statement Professional conduct in relation to defaults or unlawful acts.
-
Tech release - 17/99 Public Interest Disclosure Act 1998
The Public Interest Disclosure Act 1998 was introduced to protect individuals making disclosures in the public interest and to allow such individuals to claim compensation for victimisation following such disclosure.
-
Public Interest Disclosure Act 1998
Information on the Public Interest Disclosure Act (PIDA) 1998, and Institute guidance issued in December 1999 for Chartered Accountants working in practice or industry
-
Tech release - 16/99 receipt of information in confidence by auditors
Institute guidance issued in December 1999. This Guidance supersedes the Discussion Paper of the same title issued in February 1998(PDF 18kb/5 pages)
-
Optical delusion
Before October 2011, the board members of Olympus thought they could carry on hiding huge, decades-old losses. They hadn’t reckoned on the tenacity and integrity of the company’s new CEO, Michael Woodford, says Andrew Sawers.
Guides and publications
Reading lists and links
Guides / Publications