Advantages Of A WhistleBlower Hotline

| Thursday, November 1, 2012
By Tonia Michael


Whistleblowing is defined as the act of alerting the authorities to illegal and immoral behavior . In 2002 the Congress Sarbanes-Oxley Act became law, making it a legal requirement for all US public companies to enact a WhistleBlower hotline. Private companies are exempt from this legislation. The hotline system is designed for fraud detection, to protect organizations from wrongdoing and to expose unethical treatment of employees.

Businesses should employ hotline staff, set up telephone lines and e-mail access. A protocol for investigating claims is essential. Anonymity for the whistleblower and a non-retaliation policy are integral to the system. Those accused should not be alerted until a complete investigation and an agreed course of corrective action have been established.

The medical field can benefit from WhistleBlower hotlines to expose false claims and scams perpetrated by doctors, patients and insurance companies. Unsafe or counterfeit equipment or drugs can cause death. Silence can be fatal. Unnecessarily prescribed medication and abuse of the Medicaid and Medicare programs cause millions of dollars in losses to the government. Exposure of such malpractice is beneficial to the nation as a whole.

Toxins and waste are illegally dumped in waterways and oceans. As environmental and green issues become evermore important, this is one area where whistleblowers can have a big impact. With the help of the Environmental Protection Agency, companies who practice these immoral acts can be brought to justice, and the world can be protected against toxic waste and dangerous chemicals.

In the military field, counterfeit parts are especially problematic. Soldiers are at risk of death because of unreliable gear. Loss of life can be prevented by the use of hotlines and fail-safes put in place under the Sabanes-Oxley Act to prevent sub-standard equipment being supplied to the fighting troops.

Health care facilities for the disabled and elderly, hospices and nursing homes are all vulnerable to abuse. Implementation of the legislation can expose misuse of the Medicare and Medicaid programs which potentially cost millions in lost taxes and revenues. As insurance premiums go up due to improper health care practices, the exposure of the perpetrators is good for all.

Employees who become privy to improper conduct and disapprove can bring such activity to the public's attention by speaking out. The project which is in place for this has a mission to promote government and corporate accountability by defending whistleblowers, advancing free speech occupational and helping citizen activists to feel empowered. Potential whistleblowers can safely ensure that transgressors are held accountable, prosecuted and punished, ensure no further damage is done, and provide the chance for wronged parties to recover damages.

With the legislation now in place for these lines makes it far easier to submit an anonymous tip if your company is cheating on contracts for instance, so don't let it go unseen; there is a moral responsibility to do what benefits the majority. This is a powerful tool for gathering critical employee feedback. Hotlines have proven their ability to detect and deter corrupt behavior, and to protect businesses from economic crime. Employees prefer the telephone as a method to report malpractice. Virtually all organizations are vulnerable to fraudulent practices and the WhistleBlower hotline yields effective results.




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