©PCaW North West Audit Risk & Governance Group– 11th October 2013

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PCaW definition: Raising a concern about wrongdoing, risk or malpractice with someone in authority either internally and/or externally (i.e. regulators,media, MPs) What is whistleblowing?

©PCaW PCaW is an independent charity, founded in We provide: free confidential advice to people concerned about wrongdoing in the workplace who are unsure whether or how to raise their concern train organisations on policy and law of whistleblowing campaign on public policy, and promote public interest whistleblowing laws.

NHS Chief ‘stopped from speaking on patient safety Health service manager Gary Walker is the first former NHS employee to break the so- called “super gag”. 14 February 2013 BBC News Ryanair has sacked a senior pilot and is preparing legal action against him over “defamatory” comments he made about the airline’s safety policy in a Channel 4 documentary. 15 August 2013 The Telegraph Olympus whistleblower Michael Woodford speaks out Michael Woodford, who blew the whistle on an accounting scandal at Olympus, appeared at its shareholders' meeting and demanded to know why he was fired as chief executive.. 20 April 2012 The Independent Whistleblowing headlines 18 January 2013 The Guardian Ryanair sacks pilot over Channel 4 Dispatches Programme Gas market whistleblower sacked after accusing firms of price fixing Seth Freedman, the whistleblower at the centre of energy market manipulation allegations, has been sacked by his price reporting agency, ICIS Heren. ©PCaW

Advice Line - statistics Circa 25,000 requests for advice. Advised over 14,500 whistleblowers to date. Over 1700 new cases so far in Source: PCaW Public Concern at Work

©PCaW Advice Line - statistics 35% are public, 44% private and the remainder voluntary sector or unknown Source: PCaW Public Concern at Work

©PCaW Advice Line - statistics Breakdown of types of wrongdoing Source: PCaW

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 83% of workers blow the whistle up to two times, usually internally.  15% of whistleblowers raise a concern externally. However only 60% blow the whistle externally even on the third attempt. Only 22 individuals raised a concern four or more times. Half of these went outside their organisation  74% of whistleblowers say nothing is done about the wrongdoing.  60% of whistleblowers receive no response from management, either negative or positive.  The most likely response is formal action (disciplinary or demotion) (19%).  15% of whistleblowers are dismissed.  Senior whistleblowers are more likely to be dismissed.  Newer employees are most likely to blow the whistle (39% have less than two years' service). The Inside Story: research headlines

©PCaW ATTITUDES TO WHISTLEBLOWING From individuals, organisations and wider society 2. LAW AND POLICY Is it adequate and effective? 3. REGULATORS Should they be doing more? 4. REWARDS How can whistleblowing be incentivised? 5. TRIBUNALS Are they protecting whistleblowers and society at large? Please visit Whistleblowing Commission

Keep quiet? Go Outside? Raise internally? A concern about malpractice ©PCaW

Promotes and protects open whistleblowing Tiered disclosure regime, which emphasises internal whistleblowing, regulatory oversight and recognises wider accountability Signals a change in the culture International benchmark ©PCaW

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© PCaW Lord Nolan’s praise for ‘so skilfully achieving the essential but delicate balance between the public interest and the interest of the employers’. The Public Interest Disclosure Act 1998

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Applies to almost every worker Wide definition of wrongdoing Application overseas Burden of proof reversal Full compensation Impacts on gagging clauses and secrecy offences ©PCaW

The following changes came into force on 25 June 2013 Public interest test to replace good faith test for a disclosure to be “protected” under PIDA Good faith will only be relevant to compensation when a claim is won (the tribunal may deduct up to 25% of the compensation if found the claimant made the disclosure in bad faith) Liability for co-workers who victimise whistleblowers.  Employers can be held vicariously liable for these employees.  Reasonable steps defence for employers. Changes to PIDA

©PCaW What the surveys say 86% of UK employees believe that people in their company feel free to report a case of suspected fraud, bribery or corruption. In Europe this figure is 57% Negative media portrayal of whistleblowers is virtually nil now compared to 1997 The term “whistleblowing” is increasingly seen in a neutral to positive frame 80% of Britons think whistleblowers should be supported for revealing wrongdoing 1. Ernst & Young – Survey into Fraud Risk Mitigation – UK Report 2. Karin Wahl-Jorgenson, Cardiff School of Journalism, Media and Cultural Studies – study commissioned by Public Concern at Work, Where’s whistleblowing now? 10 years of legal protection for whistleblowers 3. YouGuv survey 2007 & 2009, commissioned by Public Concern at Work, Where’s whistleblowing now? 10 years of legal protection for whistleblowers 4. University of Greenwich: UK Attitudes to Whistleblowing,

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Positive / Negative Gives employee confidence on whether / how to raise a whistleblowing concern Helpful to a manager confronted with a difficult whistleblowing concern Assurance to Board / regulator that staff are encouraged to raise any significant issues ©PCaW

In your policy, who has ownership of whistleblowing arrangements? Human Resources Legal Finance / Audit Monitoring Officer / Governance Secretariat Chief Executive / Board Who generally do you think is best placed? ©PCaW

Good whistleblowing arrangements provide staff with a clear message that there is a safe alternative to silence. They: Deter wrongdoing Detect wrongdoing early Make management work Demonstrate an accountable organisation ©PCaW

Policy conforms to good practice Buy-in (those in charge) The right start (practical implementation) Communication & confidence (staff) Briefing / Training (design. officers & managers) Logging concerns (formal) Reviewing the arrangements ©PCaW