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#1. Whistleblowing regulations increase employers’ duty of care and accountability
Employers have a fundamental duty of care to ensure a safe and healthy working environment, as mandated by the Working Conditions Act (Arbowet). This duty encompasses addressing psychosocial work stress (PSA) factors such as harassment, discrimination, bullying, and excessive work pressure. The European Corporate Sustainability Reporting Directive (CSRD) further underscores the importance of Environmental, Social, and Governance (ESG) reporting on aspects related to the working environment, diversity, discrimination, and the protection of whistleblowers.
Article 2.5.1 of the Dutch Corporate Governance Code explicitly holds the board responsible for maintaining social safety within the company. This includes ensuring that employees can discuss and report (suspicions of) workplace misconduct and irregularities. Additionally, both the board and the supervisory board must be alert to signals of (suspicions of) misconduct.
The EU Whistleblower Directive and the Dutch Whistleblower Protection Act (Wet bescherming klokkenluiders; Wbk), which entered into force on 18 February 2023, require companies to establish a reporting channel and procedure for suspected wrongdoing. This obligation already applied to employers with at least 50 employees. Now, it also applies to employers working in specific sectors (such as the financial services industry) regardless of the number of employees. Within groups, each legal entity with at least 50 employees must have its own internal reporting procedure. To further enhance workplace safety, the Proposal for Amendment of the Working Conditions Act (Wetsvoorstel Wijziging van de Arbeidsomstandighedenwet) aims to make the appointment of a confidential advisor mandatory.
The proposed legislation and the Whistleblower Protection Act aim to make workplaces safer, which in turn should increase employees’ willingness to report any unsafe or undesirable incidents. The CSRD’s reporting requirements can also raise awareness internally and externally. Additionally, organisations are increasingly acknowledging that fostering a safer working environment can positively impact business performance, including employee productivity.
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#2. A speak up policy extends beyond legislative compliance: it is about empowering individuals, aligning policies, and streamlining processes to ensure al voices are acknowledged
The true effectiveness of legislative developments hinges on practical implementation. Organisational culture influences how secure people feel and their expectations when reporting issues. A successful speak up culture relies on clear policies that guide behaviour and facilitate the voicing of concerns. Simply having a policy addressing workplace misconduct without sufficient employee awareness can be inadequate and potentially disadvantageous for the employer. It is essential to inform and train employees. Specific measures include appointing a confidential advisor, which will become mandatory once the legislative proposal has come into effect, and adopting a speak up policy. Managers bear an additional responsibility: ensuring that boundaries are clearly defined and respected, while promoting open discussions within their teams.
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#3. Having a strong speak up culture yields organisational benefits
If whistleblower protection is restricted to official reports within formal procedures, then whistleblower regulations will only cover part of the necessary communications. For example, there should not be any gaps if the whistleblower communicates evidence of misconduct in a bilateral meeting rather than through a formal report. All forms of communications contribute to maintaining organisational checks and balances.
Recognising the potential advantages of a speak up culture is also important. Creating an environment where employees feel comfortable reporting issues can lead to the early detection and prevention of misconduct. It can also enhance overall trust and transparency within the organisation. This transparency allows organisations to address issues promptly, reduce risks, and create a more inclusive work environment. Additionally, it can minimise the chances of reputational damage, legal actions while boosting the company’s employee engagement and productivity.
