UK firms are neglecting early-warning signs of corporate wrongdoing,research by the Work Foundation finds. It claims UK companies are neglecting vital safeguards that could preventillegal or unethical business behaviour as happened in the WorldCom and Enronscandals. The foundation’s latest survey finds that many UK employers are failing toprovide adequate internal ‘whistleblowing’ channels for their employees toraise concerns about bad behaviour – such as fraud or other financialmalpractice – at work. The survey of 281 organisations shows that even among firms withwhistleblowing policies, many are suspicious of employees contacting prescribedexternal regulators with their concerns – although this is expressly protectedby the law and encouraged by statutory bodies, such as the Financial ServicesAuthority. Only one in three (32 per cent) private sector firms have introduced formalwhistleblowing policies, compared to three-quarters (75 per cent) of firms inthe public or voluntary sectors. Theo Blackwell, chief policy specialist at the Work Foundation, said:”We would like to see the DTI taking the lead in promoting whistleblowingpolicies as an effective tool for corporate governance. As the recent US scandalsreveal, employees can play a vital role in upholding good corporate governance,highlighting potential problems and maintaining organisational ethics.” Firms ignore signs of bad work ethicsOn 9 Jul 2002 in Personnel Today Previous Article Next Article Comments are closed. Related posts:No related photos.