The European Parliament and negotiators from member states have reached an agreement on the protection of whistleblowers.
The Parliament's chief negotiator Virginie Rozière presented new rules for EU-wide whistleblower protections at a press conference. According to the agreement, companies must now offer employees internal channels for reporting legal violations such as tax fraud, money laundering, or data protection breaches. Whistleblowers can also directly contact external institutions such as regulatory authorities or the media without losing legal protections. Such cases may arise when a potential danger to the public interest exists or when internal reporting has proven fruitless.
"It is vital for companies to receive and process such reports internally in order to avoid financial risks or damage to reputation," comments Moritz Homann, Managing Director Corporate Compliance at EQS Group. Toward that end, companies should provide accessible reporting channels that offer anonymity and security to the whistleblower. "Studies have shown that the number of reports received increases with easier access to reporting channels," says Homann, referring to the Whistleblowing Report 2018 of the University Chur, Switzerland.
Homann stresses the importance of companies investing in a digital whistleblowing system. Such a system can be implemented regardless of place, indispensable for companies with multiple geographic locations. A vital feature of a digital system is that it allows for anonymous communication with the whistleblower so that further enquiries can be made by the company in addressing issues. "Through active enquiries, a company signals to the whistleblower that the information is being taken seriously and is being reviewed. This prevents the whistleblower from going public," explains Homann.
The EQS Integrity Line digital whistleblowing system has been helping companies to manage whistleblower protection since 2009 and is used by more than 150 companies with between 50 to 200,000 employees.
EQS Group is a leading international technology provider for Investor Relations, Corporate Communications, and Corporate Compliance. More than 8,000 companies worldwide use EQS Group's offerings to fulfill complex national and international disclosure obligations, to minimize risk, and to reach stakeholders.
EQS Group is a digital single-source provider for global teams. EQS Group's products and services include a global newswire, regulatory news distribution, investor targeting and contact management, and insider list management. These are integrated within a cloud-based platform, the EQS COCKPIT, to streamline the workflows of Investor Relations, Communications, and Compliance professionals. The Group also offers an innovative whistleblowing and case management software, IR website services, digital reports, and webcasting solutions.
EQS Group was founded in 2000 in Munich, Germany. Today, the group employs over 450 professionals around the globe and has offices in the world's key financial market
End of Media Release
Issuer: EQS Group AG
Key word(s): Enterprise
|Company:||EQS Group AG|
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