Why anonymous whistleblowing reporting should be an option
The whistleblowing system has shown to be the most effective tool for detecting fraud. Organizations that do not have a hotline system endure median losses that are nearly double than those that do, according to various studies. However, making the decision to “blow the whistle” at work is frequently difficult for employees.
A research also showed that 74% of whistleblowers were dismissed, 6% were suspended, and 5% were moved against their will. Meanwhile, the remaining 15% received unfavorable reviews, demoted, or harassed. Employees require a secure mechanism to report, track, and address fraud concerns, while employers must safeguard their workers.
The pros and cons of anonymous reporting
Anonymous reporting is where the whistleblower’s identity is not known. It ensures safety and enhances the confidence of a whistleblower to come forward.
Providing an option for anonymous reporting can boost the intention of reporting. From an organizational standpoint, anonymous reporting may assist any organization in uncovering certain critical information that would otherwise be unavailable to the public or other parties. Hence, it offers organizations the greatest degree of protection from risk.
Despite the fact that anonymous reporting may be a powerful incentive for whistleblowers and highly beneficial for organizations, many organizations oppose it since it is deemed as creating barriers to the investigation. It might be difficult to conduct an investigation when the whistleblower’s contact is unknown. Without doing more research into the whistleblower, information gaps would inevitably arise, making it difficult to continue forward with the investigation. However, it all depends on the third party whistleblowing system solution your organization chooses.
How to overcome the barriers
As a third-party whistleblowing solution, Canary WBS provides a combination of various reporting channels that are centralized on website applications. Clients have the ease of accessing reports while ensuring the safety of the identity of the whistleblowers.
Through the Canary Mute feature, whistleblowers can receive an update on their cases and can be contacted for further inquiry without providing personal information, such as an email address or telephone number, which reduces barriers to the investigation.
For more information regarding the Canary® Whistleblowing System and other compliance services, do not hesitate to Contact us today!