Preparing for the Rise of Whistleblowers: Why Your Company Needs an Integrity Program

Government Whistleblower Programs on the Rise: Are You Prepared?

In recent years, there has been a noticeable increase in government efforts to encourage whistleblowers to come forward and report corporate misconduct. The Department of Justice recently announced a “90-day sprint” to develop and implement its own whistleblower program, following the success of the Securities and Exchange Commission’s program that has paid out billions of dollars since its inception in 2011.

While some compliance attorneys and outside counsel have expressed concerns about these programs undermining internal compliance efforts, the reality is that bigger government whistleblower programs are on the horizon. This should serve as a wake-up call for companies to elevate their own in-house compliance and integrity programs.

Most employees do not want to become whistleblowers. They join companies because they believe in the mission and want to work in a positive environment. However, when internal concerns are not addressed, they may feel compelled to turn to the government out of frustration and personal conviction.

Creating a culture where employees feel comfortable speaking up and trust that their concerns will be taken seriously is crucial in preventing whistleblower incidents. Companies should actively encourage employees to report ethical issues, provide easy access to reporting mechanisms, and demonstrate a commitment to addressing concerns.

By proactively fostering a culture of integrity and transparency, companies can reduce the likelihood of employees turning to external entities for resolution. It’s time to prioritize ethical leadership and engage employees as partners in upholding ethical standards within the organization.

Failure to do so may result in a wave of whistleblowers coming forward, potentially damaging the company’s reputation and bottom line. It’s better to be proactive and prepared than to face the consequences of ignoring internal ethical concerns.

Rob Chesnut, a former general counsel and chief ethics officer at Airbnb, emphasizes the importance of creating a culture of doing what’s right and engaging employees in ethical decision-making. By setting the tone from the top and empowering employees to speak up, companies can mitigate the risk of whistleblower incidents and build a stronger ethical foundation.

In conclusion, the rise of government whistleblower programs should serve as a catalyst for companies to reevaluate their internal compliance and integrity efforts. By prioritizing ethical leadership and creating a culture of trust and transparency, companies can better prevent and address ethical concerns before they escalate into whistleblower incidents.