Whistleblowerprotection law in production: How industrialcompanies can promote whistleblowerprotection

The new Whistleblower Protection Act (HinSchG) also affects industrial companies. They can take various measures to promote the protection of whistleblowers and create an environment in which employees feel safe to report violations and misconduct. For industrial companies in particular, it is also enormously important, in their own interests and with a view to their stock market listing, to keep an eye on the reputational risks associated with certain misconduct and to counteract them. The best way to prevent this is to raise employee awareness. We show some approaches that industrial companies can consider:

Introduction of a Whistleblowing Policy
Companies should develop and communicate a clear whistleblowing policy. This policy should answer the following questions:

What is considered a violation?
How can I report violations?
What protective measures exist for informants?
How is the investigation and processing of my report carried out?

In this context, a company agreement is also useful.

Providing Confidential Reporting Mechanisms
Companies should establish mechanisms for the confidential reporting of violations. This could involve setting up a hotline, a special email address, or ideally a digital system (internal reporting office). It is important that these channels can be used securely and as anonymously as possible in order to protect the identity of the informants. The reporting office should also have a user-friendly interface that makes it easier for employees to report violations.

As industrial companies have different requirements and processes for their reporting office, it is important that the reporting office can be individually adapted to the specific needs of the company. This includes adapting texts to the company culture, introducing reporting categories, and notification settings or reporting functions.

Ensure Whistleblower Protection
Industrial companies should ensure that whistleblowers are effectively protected against retaliation. Because the goal of the German Whistleblower Protection Act (HinSchG) is to protect whistleblowers from possible reprisals when they report misconduct in their company. Reprisals, as defined by the law, are actions or omissions in connection with professional activity in response to a report or disclosure that cause or can cause unjustified disadvantage to the whistleblower. These include termination and warnings of the employment relationship as well as the refusal of participation in further training.

For this purpose, it is important that companies introduce clear guidelines and mechanisms to ensure that whistleblowers do not suffer professional disadvantages and that any misuse or harassment of whistleblowers is appropriately sanctioned. These protective measures are essential to strengthen the trust of the whistleblowers and ensure that they can report violations without fear of reprisals.

Communication and Training
It’s important that companies regularly inform their employees about the internal reporting office. Training and training materials can help educate employees about their rights and responsibilities in connection with the internal reporting office. Through targeted communication of the importance of a reporting office and raising awareness of violations, companies can promote awareness and acceptance of this important issue. Employees should be informed about the following:

What channels can they use to report violations?
To what extent does the company support an open and transparent corporate culture?
How can awareness of the topic be raised? In industrial companies, it is recommended to communicate the reporting office through posters that depict the importance of the reporting office and its accessibility with a QR code to scan.
How can employees who do not work on the computer be given access to the reporting office? The posters should therefore be used especially in production. By informing employees about the reporting office, they are made aware that their cooperation in uncovering misconduct is of great importance to the company, and that they are supported in doing so.

Examples of communication channels per target group:
Board/Management:

“Tone from the top” communication training
Compliance/leadership training

Shareholders/Supervisory Board:

Agenda items of the respective committees
Compliance reportings

Executives:

Compliance/leadership training
Communication multipliers into the teams

Production:

Team meetings
Posters, flyers, “black board”
Presence trainings

Administration:

Intranet, electronic newsletters
Organizational units
Online training

External:

Posters, flyers, “black board”
Newsletters, infomails
Internet, e.g., Supplier Code of Conduct
Requirements of purchasing from suppliers

Independent Investigations and Transparency
Companies should ensure that reported violations are investigated independently and transparently. This contributes to the credibility of the internal reporting office and shows employees that reports are taken seriously and handled appropriately.

Especially the requirement of independence is guaranteed by outsourcing the internal reporting office to a third party. This way, the whistleblower can be sure that their data remains confidential and that the reports are checked for their validity by an external agency.

Outsourcing the internal reporting office to a service provider, like eagle lsp, is both cost-effective and legally compliant. We have both the technical know-how and the legal expertise to set up and operate a reporting office. In addition, outsourcing provides the necessary independence and thus creates trust in the reporting office and the process.

Leaders as Role Models
Leaders should support the importance of the reporting office and promote an open culture of ethics and integrity. By leading by example and actively addressing violations, they create an environment in which employees feel safe to report violations.

By implementing these measures, industrial companies can promote whistleblower protection and simultaneously ensure that violations are uncovered and addressed to maintain integrity and compliance in the company.

As of: 06/09/2023