Whistleblowers welcome code
23 July 2003
Public Concern at Work, the whistleblowing charity, welcomes the inclusion in the new Combined Code of a key provision on whistleblowing. The charity is particularly pleased that the Code favours open and confidential whistleblowing rather than the anonymous reporting that features in the US Sarbanes-Oxley law.
The Code says,
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.
Public Concern at Work’s Director, Guy Dehn, said, “It’s great news that the Code recognises the fundamental role whistleblowing should play in risk management. This practical approach provides effective Board oversight without undermining proper management. As Boards make whistleblowing work, companies will reap the dividends for their shareholders and other stakeholders.”