It is vital to have a policy in place to protect those individuals who come forward with information regarding unlawful practices or violations of organizational policies. The “whistle-blower” policy should implement specifics values to protect both the company and the individual bringing information forth. Certain laws are in place to protect those who provide valuable information about the organizations that have unethical activities.
CORE CONCEPTS
-Each organization should have a confidential process for addressing all complaints or reports of supposed illegal or unethical activities.
-Staff and volunteers need to feel safe to report unacceptable acts.
-Retaliation against whistleblowers can be a criminal act that applies to all organizations.
-Appropriate internal controls can help alleviate the occurrence of unacceptable acts.
LEGAL AND COMPLIANCE ISSUES
-The Sarbanes- Oxley Act (SOX), Section 1107, makes it a federal crime to retaliate against whistleblowers in certain circumstances.
-IRS Form 990 asks whether the organization has a written whistleblower policy.
Look for correlating Principles 6.