a content analysis of whistleblowing

8/19/2019 A Content Analysis of Whistleblowing

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Journal of Business Ethics (2007) 75:25–44

DOI 10.1007s10551!00"!#2$"!# © %&rin'e

r 2007

ontent nal*sis of +histle,lo-in'

olicies of /eain' Euro&ean

o&anies

arol assin3

einer e ries/aur* Bollen

B%66. %ince the introuction of the 8.%. %ar!

,anes!O9le* ct in 2002 an seeral other national

cor&orate 'oernance coes; -histle,lo-in' &olicies

hae ,een i&leente in a 'ro-in' nu,er of

co&anies. E9istin' research inicates that this t*&e of 'oernance coes has a liite irect effect on ethical

or -histle,lo-in' ,ehaiour -hereas -histle,lo-in'

&olicies at the cor&orate leel see to ,e ore effectie.

6herefore; eience on the i&act of (inter)na!tional

cor&orate 'oernance coes on the content of cor&orate

-histle,lo-in' &olicies is i&ortant to unerstan their

inirect i&act on -histle,lo-in' ,ehaiour. 6his stu*

anal*


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2" arol assin3 et al.

ille'alit* or other -ron'oin' -hether actual; sus! &ecte or antici&ate -hich i&licates an is uner thecontrol of that or'aniuestiona,leaccountin' or auitin' atters.

6his &art effectiel* re>uires institutionali


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ontents of +histle,lo-in' olicies 27

inae>uate safet* easures. %OH is ,roaer an

ore a''ressie than these &reious statutes (%ale

an Aran


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2G arol assin3 et al.

??co&l* or e9&lain@@ line of thou'ht (==;

2002; &. 2):

6he recoenations of the oe are ar3e in the

te9t ,* use of the -or ??shall@@. o&anies caneiate fro the; ,ut are o,li'e to isclose thisannuall*. 6his ena,les co&anies to reflect sector anenter&rise!s&ecific re>uireents. 6hus; the oecontri,utes to ore fle9i,ilit* an ore self!re'ula!tion in the =eran cor&orate constitution. Aurther!ore; the oe contains su''estions; -hich can ,eeiate fro -ithout isclosure for this the oeuses ters such as ??shoul@@ or ??can@@. 6he reainin' &assa'es of the oe not ar3e ,* these terscontain &roisions that enter&rises are co&elle too,sere uner a&&lica,le la-.

6here is no -histle,lo-in' &roision in this coe.6he national cor&orate 'oernance coes of all

other countries inclue in this stu* (i.e.; %-it!

uire) -as one of these &ro&osals (rice-ater!

houseoo&ers; 2005). 6he ne- e'ulation #7–02

has ,een effectie since Januar* 1st; 200" (AE an

EDEA; 200$).

siilar recent action in %-itui&ent for onitorin' e&lo*ee

conuct; to ,e introuce as &art of the hotline;

re>uire -or3s council consent. o &osition -as

ta3en ,* the court on -hether or not the hotline

-as le'al accorin' to =eran la- (Eershes;

2005).

6he re'ulator* chan'es aresse in this section

are all intene to chan'e e9istin' -histle,lo-in'

,ehaiour in the sense that the* ai to facilitate the

-histle,lo-in' &rocess an to &rotect the &osition of

the -histle,lo-er. o-eer; e9istin' literature (see

ne9t section) su''ests that the i&act of structuralfactors (such as re'ulations) is lar'er at a cor&orate

leel. 6herefore; re'ulator* chan'es on actual -his!

tle,lo-in' ,ehaiour a* ,e ost effectie throu'h

cor&orate -histle,lo-in' &olicies. 6o further aress

the role of &olicies an re'ulations on -histle,lo-in'

,ehaiour; the ne9t section -ill iscuss the e9istin'

literature on -histle,lo-in' ,ehaiour.


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ontents of +histle,lo-in' olicies 2#

6heoretical ,ac3'roun

E9istin' theor* on ethical ,ehaiour su''ests that

&ersonal characteristics (e.'.; oral eelo&ent;

e'o; locus of control) an situational (or'ani


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$0 arol assin3 et al.

-histle is also influence ,* the leel in -hich

a &erson &erceies this action as ethical.

$. %tructural factors; incluin' &olicies an re'ulations

concernin' -histle,lo-in': If an or'ani


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ontents of +histle,lo-in' olicies $1

In suar*; 3no-le'e on the content of

internal -histle,lo-in' &olicies is i&ortant to assess

the inirect effects of recent chan'es in re'ulations

an to increase our unerstanin' of the effectie!

ness of these &roceures to influence -histle,lo-in' ,ehaiour. In this conte9t; a fe- stuies hae

e9aine &olic* ocuents for a content anal*sis to

ientif* coon issues aresse in these ocu!

ents -ithout u'in' the for effectieness.

=aunit< an /ere (2002) anal*


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6B/E I %a&le

collection

E!ails sent #5

o re&l*onfiration of recei&t onl* )4G6otal nu,er of res&onses 47

efusals to coo&erate )10

Details 3e&t &riate )G

o &olic* )5

6otal nu,er of useful res&onses 24

fro Euroto&!100

es&onses

riate &olicies aile 7

u,lic &olicies ailereferre to 17 24

8seful aterial foun on sites of "

refusin'unreacha,le co&anies

6otal nu,er of useful o,serations $0fro Atse Euroto&!100

itional &ro'raesoes foun 7

on Lurich E9chan'e

itional &ro'raesoes foun 1#

on stera E9chan'e

6otal nu,er of useful o,serations 5"

O,serations

%e&arate &olicies 2"

oes of onuctEthics an other $0

fra'ente inforation on

-histle,lo-in' 5"

es&onse rate (47#5) 4#K

8seful res&onse rate (24#5) 25K

res&onses fro co&anies in Bel'iu; Denar3;

Ainlan; or-a* an %&ain.

6he Dutch an %-iss &arts of the sa&le -ere

su,stantiall* increase after the screenin' of these

countries@ national stoc3 e9chan'es. nother 1#

o,serations -ere foun on Dutch co&an* -e,!

sites; ost of -hich -ere se&arate &olicies. 6his can

,e e9&laine ,* the rule of the 6a,a3s,lat oestatin' that the &olic* ust ,e &oste on the co!

&anies@ -e,sites. In %-it


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ontents of +histle,lo-in' olicies $$


10/21


6B/E III

ontent anal*sis

6otal sa&le(n M 5") %u,!sa&le 1(n M 2") %u,!sa&le 2(n M $0)

I =eneral contents; sco&e an tone

%tate that the &olic* or coe a&&lies to all e&lo*ees

%tate that the &olic* or coe a&&lies to the entire 'rou&

%tate that re&ortin' is a re>uireent or ut* %tate that

e&lo*ees are e9&licitl* encoura'e to re&ort olic*

??su&&leents@@ or ??oes not re&lace other &olicies@@ %tate

that the &olic* -as introuce in co&liance

-ith %ar,anes!O9le* %tate that the &olic* -as

introuce in co&liance

-ith national re'ulations Inforation -as 'ien a,out local

a&&lication of the &olic* Inclue a se&arate &olic* for senioran e9ecutie ana'eent Inclue a se&arate &olic* for

financial re&ortin' atters %tate that contractors a* also

re&ort -ron'oin' 6he &ossi,ilit* of re&ortin' is state

neutrall* Inclue a full seconar* (a&&eal) &roceure -ith

seconar* contact %tate that forer e&lo*ees can also

re&ort -ron'oin' %tate an* results of the &olic*

II ature of iolations to ,e re&orte

=eneral e9a&les are 'ien

(??iolations of coela-@@ etc.) iolations

of coe or internal &olicies iolations of the

la- or other re'ulations Ainancial re&ortin'

atters%&ecific e9a&les are 'ien (criinal offences etc.) Aailin'

to re&ort a 3no-n iolation is a iolation in itself riinal

offences ealth an safet* threats Enironental issues

orru&tion; isana'eent or a,use of authorit*

Aailure to co&l* -ith le'al o,li'ations

isinforin' of authorities or &u,lic ,oies

iscarria'es of ustice

6heft; isa&&ro&riation or isuse of co&an* assets Insier

train'; ,ri,er* or one* launerin' %ocial isconuct;

i&ro&er or unethical ,usiness conuct ??cts that i&act

the co&an*@@ %ecurit* ,reaches Arau ,* thir &arties

onflicts of interest

??Irre'ularities of a 'eneral; o&erational or financialnature@@

#$.$

K

70.0

K

G0.0

K

2$.$

K

2$.$

K

2".7

K

1".7K

2$.$K

$$.$K

2".7K

".7K

1$.$K

0.0K

$.$K

0.0

K

27.5K

100.0

K

#".4K #2.$K 100.0K

"".1K 7".#K 5".7K

4".4K "1.5K $$.$K$5.7K 57.7K 1".7K

$0.4K 42.$K 20.0K

1#."K $G.5K $.$K

1#."K $4."K ".7K

1".1K 2".#K ".7K

12.5K 1#.2K ".7K

10.7K 15.4K ".7K

10.7K 2$.1K 0.0K

G.#K 11.5K ".7K

G.#K 15.4K $.$K

G.#K 7.7K 10.0K

7.1K 11.5K $.$K

5.4K 7.7K $.$K

#".4K

"".1K

"".1K

$5.7K

25.0K

2$.2K

21.4K

21.4K21.4K

1#."K

17.#K

12.5K

10.7K

5.4K

1.GK

27.GK

#".4K

24.7K

100.0K

"1.5K

50.0K

50.0K

2".#K

1#.2K

2".#K

1#.2K

7.7K

11.5K

$0.GK

11.5K

2$.1K

7.7K

$.GK

2G.1K

#2.$K


11/21

5.4K 11.5K 0.0K

5.4K $.GK ".7K

5.4K 11.5K 0.0K

$."K 7.7K 0.0K

$1.#K 1G."K


12/21


6B/E III

continue

6otal sa&le

(n M 5")

%u,!sa&le 1

(n M 2")

%u,!sa&le 2

(n M $0)

III Officials or ,oies to -ho -ron'oin' shoul ,e re&orte

Direct or inirect su&erisor

o&liance or Ethics officer

ontact etails for s&ecific contacts are 'ien

%&ecial hotline

(hairan of) %u&erisor* Boar or Boar of Directors

%e&arate contact for financial re&ortin' atters

uan esources e&artent

/e'al e&artent

(hairan of) uit oittee

or&orate =oernance e&artent

Internal uit e&artento&an* %ecretar*

ontact etails are referre to (??foun on -e,siteintranet@@)

(hairan of) Boar of ana'eent or E9ecutie Boar

is3 ana'eent e&artent

onfiential isor or 6ruste e&resentatie

hief E9ecutie Officer

hief Ainancial Officer

o&laints oittee

Internal -or3s council

I e&ortin' 'uielines an foralities

%tate that iolations shoul ,e re&orte in sufficient

etail in re&ort to allo- an inesti'ation %tate that iolations

a* ,e re&orte in a natie lan'ua'e;

or that the re&ortin' s*ste is ultilin'ual

Inclue a s&ecial re&ortin' for

e>uireent to e9&lain sus&icion -ithout re>uirin' eience

%&ecific etails entione hec3list for criteria of ethical

,ehaiour =ra&hical re&resentation of re&ortin' s*ste Ban on

e&lo*ees startin' inesti'ations theseles 6ranslation is

re>uire -ith the co&laint

onfientialit* an anon*it*

e&orte iolations are treate confientiall*

iolations can ,e re&orte anon*ousl*non*ous re&ortin' is iscoura'e or clearl* not &referre

ircustances 'ien -here confientialit* cannot ,e 'uarantee

u,licit* is allo-e uner clear conitions

(??o not 'o &u,lic unless...@@) u,licit* is

not allo-e -ithout &erission o

anon*it* for thir &arties

7$.2K G4."K "$.$K

5$."K 57.7K 50.0K

50.0K "5.4K $".7K

$7.5K 42.$K $$.$K

2G."K 4".2K 1$.$K

25.0K 2$.1K 2".7K

21.4K 7.7K $$.$K

21.4K 11.5K $0.0K

1".1K 1#.2K 1$.$K

1".1K 7.7K 2$.$K

1".1K 15.4K 1".7K

12.5K 7.7K 1".7K

G.#K 11.5K ".7K

7.1K 11.5K $.$K

7.1K 7.7K ".7K

5.4K 11.5K 0.0K

$."K 7.7K 0.0K

1.GK 0.0K $.$K

1.GK $.GK 0.0K

1.GK 0.0K $.$K

22.1K

2".#K

10.0K

G.#K 1#.2K 0.0K

7.1K 15.4K 0.0K

7.1K 15.4K 0.0K

7.1K $.GK 10.0K

5.4K 11.5K 0.0K

$."K 7.7K 0.0K

1.GK 0.0K $.$K

7.7K 1$.2K $.0K

7G."K #".2K "$.$K

"4.$K "#.2K "0.0K

2$.2K $G.5K 10.0K

21.4K $0.GK 1$.$K

1#."K 42.$K 0.0K

5.4K 11.5K 0.0K

1.GK 0.0K $.$K

$0."K 41.2K 21.4K

20.5K

14.$K

14.$K1#.2K


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$" arol assin3 et al.

6B/E III

continue

6otal sa&le

(n M 5")

%u,!sa&le

1 (n M 2")

%u,!sa&le 2

(n M $0)

I rotection fro retaliation=eneral stateent (??6here -ill ,e no retaliation@@)e>uireent of 'oo faithetaliation is &rohi,ite or not tolerateno-in'l* a3in' false or alicious re&orts is &unisha,leetaliation -ill ,e &unishee>uireent of reasona,le 'rouns or ,eliefs o retaliation; een if co&laint is unfounee>uireent of 'enuine or honest concerns; or le'itiate re&orts o iunit* a'ainst &unishent if co&lainant is inole/ia,ilit* to-ars su,ect of alicious co&laint

e>uireent of no &ersonal 'ainDisclosure is creite if co&lainant is inole o retaliation if co&lainant is inole in 'oo faithi'ht of &rotection can ,e lost in case of e9ternal re&ortin'

II Inesti'ation etails=uarantee of inesti'ation or serious treatent of co&laintO,li'ation to coo&erate in inesti'atione>uireent of co&laint lo'6er for &roiin' fee,ac3 to e&lo*ee is 'ienDecision &rocess of -hether or not to inesti'ate is escri,e

7$.2K #2.$K 5".7K

57.1K "1.5K 5$.$K

$2.1K 1#.2K 4$.$K

2G."K 50.0K 10.0K

2".GK $4."K 20.0K

2".GK 50.0K ".7K

1".1K 15.4K 1".7K

12.5K 15.4K 10.0K

10.7K 11.5K 10.0K

G.#K 1#.2K 0.0K

$."K 7.7K 0.0K$."K $.GK $.$K

1.GK 0.0K $.$K

1.GK $.GK 0.0K

21.7K 27.5K 1".7K

57.1K G0.GK $".7K

1#."K 2".#K 1$.$K

14.$K 2".#K $.$K

14.$K $0.GK 0.0K

7.1K 15.4K 0.0K

22.5K $".2K 10.7K

sa&le onl* ha a coe of ethics that a&&lie to

e&lo*ees in a senior ana'erial &osition; ost

often calle %enior Ainancial Officers. %oe other

co&anies ha such a coe in aition to the noral

&olic*; a3in' the total &ro&ortion -ith a ana!

'erial coe of ethics 21K. In ters of co&an*

structure; ""K of the sa&le state that their &olic*

-as =rou&!-ie; coerin' all su,siiaries. Onl*

21K; ho-eer; 'ae soe s&ecific inforation a,out

local a&&lication of the &olic* ,* su,siiar* co!

&anies. E9actl* a >uarter of the sa&le stresse thatthe &olic* oes not re&lace other &olicies li3e &er!

sonal 'rieance &roceures. 6he &roceures -ere

accessi,le to contractors an forer e&lo*ees in

1GK an 5K of the cases; res&ectiel*.

6he tone of the &olicies -as at least oeratel*

authoritatie in the aorit* of cases (""K). 6hese

&olicies an coes s&ea3 of a re>uireent or ut* to

re&ort iolations; e&lo*ees ??ust@@; ??shoul@@ or

??are e9&ecte to@@ re&ort the. 6hirt*!si9 &ercent

ha an encoura'in' tone li3e ??E&lo*ees are

encoura'e to re&ort@@; ??&lease re&ort@@ or ??feel free

to re&ort@@. ore neutral tone; statin' that

e&lo*ees ??can@@ or ??a*@@ re&ort; -as use ,* 1$K.

6hese &ro&ortions a u& to ore than 100K. 6his

can ,e e9&laine ,* seeral o,serations -here the

'eneral &olic* ha an encoura'in' or neutral tone;

-hile the ana'erial coe of ethics use in aition

to it -as ore authoritatie. 6his resulte in ul!

ti&le tones for soe co&anies.

iolations to ,e re&orte

In #"K of the sa≤ 'eneral e9a&les of iolations

-ere 'ien. Breaches of internal &olicies an coes

of conuct -ere entione in all these cases; an

iolations of the la- or other e9ternal re'ulations


14/21


-ere inclue in ""K. lthou'h financial re&ortin'

atters cause the 'reatest scanals of the &ast *ears

an tri''ere the creation of %OH an the national

cor&orate 'oernance coes; the* -ere entione

in onl* 4"K of the sa&le. In $0K of the &olicies; it-as ae clear that failin' to re&ort a iolation

(reainin' silent a,out a ,reach or concealin'

inforation a,out one) is a iolation in itself.

ore s&ecific e9a&les -ere inclue in $"K of

the sa&le. 6he ost coonl* entione

e9a&les -ere criinal offences; health an safet*

threats (,oth 20K) an enironental issues (1"K).

Aailure to co&l* -ith le'al o,li'ations (11K) an

iscarria'es of ustice (#K) -ere foun onl* in the

&olicies of 8.. co&anies. 6his is not sur&risin' as

,oth these iolations -ere literall* state as isclo!

sures >ualif*in' for &rotection in the u,lic InterestDisclosure ct; to'ether -ith criinal offences;

health an safet* ha


15/21

$G arol assin3 et al.

ircustances -here the co&an* cannot 'uar!

antee co&lete confientialit* -ith res&ect to the

ientit* of the -histle,lo-er -ere entione ,*

21K. 8suall* these circustances -ere the eent of

a criinal inesti'ation or a ciil action for -hich astateent or eience fro the e&lo*ee a* ,e

re>uire.

e&ortin' a concern in co&lete anon*it*;

-ithout reealin' one@s ientit* to a esi'nate

contact &erson; -as &ossi,le in "4K of all cases. But

in 2$K it -as clearl* not the &referre -a* of action

since anon*ous re&ortin' can ??hiner or co&li!

cate inesti'ations@@.

rotection fro retaliation

E&lo*ees that consier re&ortin' a iolation ust

,e &rotecte fro ne'atie actions ta3en a'ainst

the ,* the su,ect ,ein' re&orte as -ell as su&e!

riors afrai of ne'atie &u,licit*. 6he stateent

&roisin' this &rotection can ,e ae in ulti&le

-a*s. ost &olicies (7$K) containe the 'eneral

'uarantee that there -ill ,e no retaliation; anor

e&lo*ees -ill ,e &rotecte. rule &rohi,itin'

retaliation -as foun in $2K; an a clear stateent

'uaranteein' &unishent of retaliation in 27K.

%eeral &olicies ha ore than one 3in of state!

ent; -hich e9&lains -h* these &ercenta'es aountto ore than 100K.

o-eer; the aorit* of co&anies restrict the

3ins of re&orts that >ualif* for &rotection. e&orts

hae to ,e ??in 'oo faith@@ (57K); ,ase on ??rea!

sona,le 'rouns,eliefs@@ (27K) or ??'enuinehon!

estle'itiate@@ (1$K). 6he concern a* turn out

unfoune after ue inesti'ation; ,ut if it satisfies

these conitions the e&lo*ee shoul not ,e &un!

ishe for re&ortin' it. o-eer; onl* 1"K of the

sa&le containe a stateent that this inee -ill

not ha&&en. 6he lo'ical o&&osite is isci&linar* ac!

tion a'ainst 3no-in'l* false re&ortin' an re&orts-ith alicious intent. 6his rule -as inclue in 2#K

of the sa≤ an #K state that in such cases the

re&ortin' e&lo*ee is lia,le for aa'es suffere ,*

the su,ect of the re&ort.

%ur&risin'l* fe- &olicies inicate -hat -ill ha&!

&en if the re&ortin' e&lo*ee -as &ersonall*

inole in the iolation; since these &eo&le are an

i&ortant 'rou& of &otential -histle,lo-ers. In 11K

of all cases; a rule is inclue statin' that re&ortin'

one@s o-n inoleent -ill not 'ie iunit*

a'ainst &unishent of this iolation; ,ut onl* t-o

co&anies (4K) inicate that isclosure -ill ,e

creite; an one ana'erial coe of ethics &ro!ise there -oul ,e no retaliation if the ana'er -as

inole in 'oo faith.

Inesti'ation etails

Inesti'ation or serious treatent of a re&ort -as

'uarantee in 57K of the total sa&le. oo&eration

,* ana'ers an other e&lo*ees -ith inesti'ation

&roceures a* s&ea3 for itself; ,ut -as onl*

e9&licitl* state as an o,li'ation in 20K of the &ol!

icies. Other etails -ere the re>uireent to 3ee& alo' of the inesti'ation an a s&ecific ter for

fee,ac3 to the e&lo*ee (,oth 14K). 6his fee,ac3

ter -as usuall* 2 onths or G -ee3s. Ainall*; four

&olicies (7K) escri,e a &rocess to ecie if the

co&laint -ill ,e treate seriousl*.

iscellaneous issues

oenclature

Aor the se&arate &olicies in su,!sa&le 1; seeralifferent naes -ere use. 6he ost coon titles

-ere ??+histle,lo-in'+histle,lo-er olic*@@ an

??+histle,lo-in' roceure@@; in; res&ectiel*; $1K

an 1#K of these cases. Aour &olicies (15K) -ere

calle ??ules of onuct relatin' to %us&ecte

(Ainancial) Irre'ularities@@ or ??oe of +histle!

,lo-in'@@; su''estin' ore authoritatie rules. 6-o

&ro'ras (GK) ha a er* s&ecific nae for the

&ro'ra that concisel* si'nalle the unerl*in'

intentions: O&en6al3 an %&ea3!O86. 6he other

&olicies ha naes li3e: ??al&ractice e&ortin'

olic*@@; ??or&orate Ethics N o&liance ro!'rae@@; ??=rou& olic* %tateent +histle,lo-er

rotection@@; ??u,lic Interest Disclosure olic*@@

(stressin' the lin3 -ith the u,lic Interest Disclosure

ct); ??Internal lert %*ste@@; ??roceure for

o&laints on ractices iolatin' Business rinci!

&les; !; %E!; an %ecurit* olic* %tateents@@

an ??o&liance Officer@@. 6he latter ,ein' a

escri&tion of the function -ith the rules for


16/21

ontents of +histle,lo-in' olicies $#

contactin' hiher foun in the onl* %-iss o,ser!

ation in su,!sa&le 1.

%iilar forats

6he Dutch o,serations in su,!sa&le 1 see to

hae eelo&e a stanar forat. Aie recent &oli!

cies; introuce ,et-een u'ust 2004 an arch

2005; -ere stri3in'l* siilar in ters of contents (the

onl* ifference ,et-een the -as a rule concernin'

aenents of the &olic*) an ienticall* structure.

=ien the fact that there is no &u,lic forat aaila,le

that -oul e9&lain the siilarit* of Dutch &olicies;

this coul inicate that Dutch co&anies hae

ao&te a ?co&*!an!&aste@ a&&roach to the eel!

o&ent of their -histle,lo-in' &olicies. 6his a&! &roach a* increase the efficienc* of the

eelo&ent of these &olicies an also a* result in a

hi'h leel of uniforit* ,et-een &olicies. o-eer;

it coul also result in &olicies that are not ae>uatel*

aa&te to the situation of iniiual co&anies.

riar* contacts

In ost &olicies; a &riar* an seconar* contact

-as s&ecifie. 6he latter of these -as to ,e consulte

in case re&ortin' to the &riar* contact is; for -hateer reason; i&ossi,le. In soe other cases;

stateents -ere ae li3e ??e&ort to &erson H;

coittee C or officer L@@. 6he authors re'are

the contact &ersons in these stateents as ulti&le

instances of &eo&le to contact in the first instance.

Of the 7" first!instance contacts ientifie in the

entire sa≤ 40 (5$K) -ere irect or inirect

su&erisors. e&ortin' to one@s ieiate su&erior

or; if not &ossi,le; to one@s su&erior@s su&erior; is

clearl* &referre. 6he s&ecial o&liance function

outsie the usual hierarch* -as entione in onl*

10 cases (1$K) as soeone to re&ort to in the firstinstance; -hilst this function -as aaila,le in 54K of

the sa&le ($0 cases). &&arentl*; o&liance

Ethics Officers anor oittees are seen as

soeone to resort to if the e&lo*ee feels unco!

forta,le -ith the usual course of action. 6he

ana'erDe&artent an cor&orate!'oernance

functions li3e =eneral ounsel -ere ,oth s&ecifie

in fie cases (7K). 6he other first!instance contacts

entione ulti&le tie; -ere the confiential

hel& facilit* (e.'.; a hotline); the /e'al Officer

De&artent; the uit oittee an the o!

&an* %ecretar*.

ontacts for financial re&ortin' atters

%e&arate &roceures -ere soeties e9&licitl* state

for re&ortin' atters of >uestiona,le accountin';

auitin' or internal control (referre to ,* the au!

thors as ??financial re&ortin' atters@@). In soe other

cases; a s&ecial contact &erson -as 'ien for

re&ortin' this 3in of iolations. 6his aounte to

14 instances of se&arate contacts for financial

re&ortin' atters. %i9 of these (4$K) -ere the

o&liance function. 6he uit oittee anthe Internal uit function -ere entione in four

(2#K) an t-o cases (14K); res&ectiel*. 6he

hairan of the %u&erisor* Boar an the hief

Ainancial Officer -ere ,oth state once as the &erson

to -ho financial re&ortin' atters shoul ,e

re&orte.

&&eal &roceures an contacts

%i9 &olicies in su,!sa&le 1 containe a full sec!

onar* &roceure to ,e use in e9ce&tional cir!custances. In short; these circustances -ere

usuall* the follo-in': the &riar* or seconar*

contact &erson is inole in the iolation to ,e

re&orte; has not res&one to the re&ort -ithin the

&erio s&ecifie in the &olic* or has su''este a

ifferent res&onse &erio -hich is unreasona,l*

lon'; the e&lo*ee reasona,l* fears retaliation

a'ainst his action; or a &reiousl* su,itte re&ort

a,out the sae iolation has not ha the effect of

reoin' the iolation. lso; an a&&eal to the sec!

onar* contact &erson a,out the lon'er res&onse

&erio or the lac3 of effect fro the &reious re&ortust hae faile ,efore the seconar* &roceure

a* ,e resorte to. Aie of these si9 &olicies -ere

the Dutch ones -ith er* siilar structures an

contents. ot sur&risin'l*; these fie all referre to

the hairan of the %u&erisor* Boar as the one to

consult in this ??a&&eal &roceure@@. In the si9th

&olic* this -as the Inte'rit* oittee; a o!

&liance function.


17/21

40 arol assin3 et al.

Effect of incor&oration in a coe of conuct an ifferences

,et-een countries

In the total sa≤ t-o 'rou&s of o,serations -ere

istin'uishe: (1) se&arate; s&ecific &olic* ocuentsan stateents on -histle,lo-in' (su,!sa&le 1)

an (2) -histle,lo-in' clauses in cor&orate coes of

conuct or ethics (su,!sa&le 2). Differences in the

content of &olicies ,et-een ,oth 'rou&s -ere teste

usin' a series of v2 tests. 6he results inicate that the

&rinci&al ifference ,et-een the 'rou&s is that the

inforation &roie in &olicies that are incor&o!

rate in coe of conuct is less etaile. Aor fie of

the seen ite!cate'ories that -ere use in the

content anal*sis; the results -ere statisticall* si'nifi!

cant at at least the 0.05 leel. Aor the cate'ories

?=eneral contents; sco&e an tone@ an ?Officials or ,oies to -ho -ron'oin' shoul ,e re&orte@ no

si'nificant ifferences -ere foun.

8sin' a series of A!tests; no si'nificant ifferences

-ere foun ,et-een the content of &olicies in the

etherlans; %-ituentl*; a fre>uenc* ta,le -as &resente to

easure the etails of the -histle,lo-in' &olicies. In

cate'or* I; the a&&lica,ilit* to all e&lo*ees; a

'rou&!-ie sco&e an an authoritatie tone(??e&lo*ees are re>uire toust re&ort@@) -ere

foun ost fre>uentl*. 6he ost coon 'eneral

e9a&les of ,reaches -ere iolations of coes an

&olicies; an iolations of la- an e9ternal re'ula!

tions. +here ore s&ecific iolations -ere en!

tione; these -ere ost often criinal offences;

an'er to health or safet* an enironental issues.

6he usual hierarch* -as ost fre>uentl* state as the

6B/E I Basic

structure of -histle,lo-in' &olic*

I =eneral contents; sco&e an tone

II ature of iolations to ,e re&orteIII Officials or ,oies to -ho -ron'oin'

shoul ,e re&orte

I e&ortin' 'uielines an foralities

onfientialit* an anon*it*

I rotection fro retaliation

II Inesti'ation etails

&erson (or one of the &ersons) to re&ort to; ,ut a

se&arate co&liance or ethics function outsie the

hierarch* -as also often aaila,le. In seeral cases;

the &ro'ra -as su&&orte ,* a confiential hotline.In case s&ecific &roceural foralities an facilities

-ere 'ien for the act of re&ortin' a iolation; these

-ere ost fre>uentl* a re>uireent of sufficient

etail an the &ossi,ilit* to re&ort in one@s natie

lan'ua'e. onfientialit* is coonl* 'uarantee;

an anon*ous re&ortin' is &ossi,le in an* cases;

,ut also iscoura'e in soe of the. rotection

fro retaliator* actions is al-a*s 'uarantee; thou'h

retaliation is not er* coonl* state as a &ro!

hi,ite anor &unisha,le act. =oo faith is en!

tione as a re>uireent for this &rotection >uite

often. 6he sin'le ost coon etail concernin'inesti'ation of re&orts is the 'uarantee to o so.

Aurther inforation in this cate'or* -as not foun

in an* cases.

ost se&arate &olicies -ere foun in the

etherlans. %ince the 6a,a3s,lat oe re>uires

co&anies to &ost the -histle,lo-in' &olic* on

their -e,sites; this is not er* sur&risin'. lso;

co&are to the e9aine &olicies fro the 8..; it

sees the Dutch &olicies hae ,ecoe increasin'l*

unifor as ost of the ones that -ere introuce in

2005 are stri3in'l* siilar in ters of contents an

structure. 6his eelo&ent has not ,een o,serein 8.. &olicies; een thou'h the u,lic Interest

Disclosure ct an the o,ine oe on or!

&orate =oernance hae ,een effectie for a lon'er

&erio than the 6a,a3s,lat oe. 6he thir lar'est

nu,er of o,serations -as foun in %-it


18/21

ontents of +histle,lo-in' olicies 41

ocuent of ulti&le &a'es; -as se&aratel* &oste

on a co&an* -e,site. ll other %-iss inforation

on -histle,lo-in' -as foun in coes of conuct or

ethics an accorin'l* inclue in su,!sa&le 2.

In 'eneral; the cate'orical frae-or3 create anthe etails ientifie in this stu* can ,e useful for

co&anies to 'et an iea a,out the coon con!

tents of -histle,lo-in' &olicies. It -oul ,e lo'ical

to use the seen cate'ories of inforation in

asse,lin' such a ocuent. o&anies that o not

hae such a &olic* are also li3el* to loo3 at the ones

&reiousl* -ritten. %eeral Dutch co&anies a*

hae alrea* one so; since their recentl* introuce

&olicies are >uite siilar. 6hese ocuents see to

reflect the &resent state of the art of -histle,lo-in';

an or'ani


19/21


??the fact that heshe has ,rou'ht the concern to

li'ht -ill ,e ta3en into account@@ or the e&lo*ee

-ill ,e ??'ien full creit for isclosin' the iolation

oluntaril*; in an* su,se>uent ecisions@@. One

co&an* ae a stateent in its coe of ethics for senior financial officers that no retaliation -oul

ta3e &lace or ,e &eritte if the officer ??acte in

'oo faith -hen a3in' a re&ort or ,ein' inole in a

iolation@@ (e&hasis ae). ules li3e these are

>uite uncoon an ao&tin' the on a lar'er

scale a* ,e ,eneficial to e&lo*ees -ith resera!

tions ,ecause of ou,t or &ersonal inoleent;

es&eciall* if one onl* fins out after-ars that -hat

heshe i -as not allo-e.

Auture research coul co&are -histle,lo-in'

&olicies fro the 8nite %tates -ith Euro&ean &ol!

icies; to fin siilarities an ifferences an &erha&sa3e &ractical su''estions a,out -hat ,oth sies of

the tlantic coul learn fro each other. 6he recent

trou,le -ith the i&leentation of %OH in Arance

su''ests that the ??erican -a*@@ of -histle,lo-in'

i'ht ,e inco&ati,le -ith the &art of Euro&e that

oes not e&lo* the n'lo!%a9on ,usiness oel.

/iitations

=ien the la,our intensie research etho use in

this stu*; the research sa&le is liite to 5"co&anies fro seen Euro&ean countries; -hich

liits the e9ternal aliit* of the stu*. lso; the

sa&le selection etho a* result in soe non!

res&onse ,ias; 'ien the res&onse rate of the ori'inal

sa&le an the selection of aitional o,serations.

6he Atse Euroto&!100 is a list of leain' Euro&ean

co&anies; an the anal*sis in this &a&er is thus

liite to such co&anies. 6he o,serations fro

this list -ere su&&leente ,* the lar'est liste

Dutch an %-iss co&anies. Auture research -ill

hae to &oint out the state of -histle,lo-in' &olicies

in saller co&anies. recent stu* ,* =foun that a,out half of the Dutch liste co&anies

lac3 a -histle,lo-in' &olic*; -hilst #2K oes hae a

coe of conuct (=; 2005). 6hese &olicies are

far ore coon; ho-eer; in the &resent stu* 17

se&arate &olicies -ere foun on the Dutch ain

ine9 (EH); -here the 24 lar'est Dutch co&anies

are liste. 6he = stu* inclue 2" co&anies

fro all oer the Dutch stoc3 e9chan'e.

concentration of -histle,lo-in' &roceures in the

u&&er eciles of the e9chan'e coul ,e the ost

&lausi,le e9&lanation for the ifference ,et-een

=@s finin's an the ones in the &resent stu*.

Aurtherore; the co&osition of the sa&le issli'htl* ,iase ,* the nu,er of Dutch an 8..

co&anies in su,!sa&le 1. /o'ical e9&lanations for

this are the 8..@s histor* of -histle,lo-er &rotec!

tion throu'h the u,lic Interest Disclosure ct; an

the Dutch re>uireent of &u,lishin' -histle,lo-in'

&olicies on the Internet. 6he ,ias has ,een iti'ate

as far as &ossi,le ,* the o,serations in su,!sa&le 2.

Ainall*; it shoul ,e entione that this stu* oes

not &roie irect eience on the effectieness of

'oernental 'oernance coes or co&an*

-histle,lo-in' &olicies. 6o assess ho- these &olicies

result in reucin' the nu,er of ethical iolationsan a3in' sure coitte iolations are isco!

ere; re&orte an sole internall*; is another

>uestion. o-eer; in orer to aress this >uestion

in a -a* that transcens anecotic eience; ata on

the content of -histle,lo-in' &olicies as &roie in

this stu* is essential.

eferences

rnol; D. an /. oneon: 1##1; P??Internal uitors@@

erce&tions of +histle!Blo-in' an the Influence of oraleasonin': n E9&erientP; Auditing: A Journal of Theory

and Practice 10; 1–15.

ssociation Arancaise es Entre&rises riees an ou!

eent es Entre&rises e Arance: 200$; The Corporate

Governance of Listed Corporations (AE an EDEA;

aris).

Barnett; 6.; D. %. ochran an =. %. 6a*lor: 1##$; P6he

Internal Disclosure olicies of riate!%ector E&lo*ers:

n Initial /oo3 at 6heir elationshi& to E&lo*ee

+histle,lo-in'P; Journal of Business Ethics 12; 127–1$".

Brass; D. J.; . D. Butterfiel an B. . %3a''s: 1##G;

Pelationshi&s an 8nethical Behaiour: %ocial net-or3

ers&ectieP; Academy of Management evie! 2$(1); 14– $1.

Brin3ann; J. . an . Is: 200$; ?=oo Intentions sie:

Draftin' a Aunctionalist /oo3 at oes of Ethics@; Business

Ethics: A European evie! 12; 2"5–274.

Bro*; .; J. oulter an . ihale3 1##G; ?+histle!Blo-in':

ross!ultural o&arison of Ethical


20/21

ontents of +histle,lo-in' olicies 4$

erce&tions of 8.%. an Ja&anese ccountin' %tuents@;

American Business evie!" 14–21.

allahan; E. %. an J. +. ollins: 1##2; PE&lo*ee attitues

to-ar -histle,lo-in': ana'eent an &u,lic &olic*

i&licationsP; Journal of Business Ethics 11(12); #$#–#4G.

or&orate =oernance oittee (=): 2004; Belgian

Code on Corporate Governance (or&orate =oernance

oittee; Brussels).

or&orate =oernance oittee (=): 200$; The #utch

Corporate Governance Code: Principles of Good Corporate

Governance and Best Practice Provisions (or&orate

=oernance oittee; 6he a'ue).

Dechert 2005; #echert $nPoint" 1# %e&te,er 2005 (Dechert;

/onon).

D-or3in; 6. . an . %. Baucus: 1##G; PInternal s. E9ternal

+histle,lo-ers: o&arison of +histle!,lo-in'

rocessesP; Journal of Business Ethics 17(12); 12G1–12#G.

D-or3in; 6. . an J. . ear: 1##7; Better %tatutor*

&&roach to +histle,lo-in'P; Business Ethics %uarterly 7;

1–1".

Er'eneli; .: 2005; ross!ultural o&arison of Ethical

Behaior in Business elate Dileas: o&arison

aon' 6ur3ish; E'*&tian; ir'hi< an a


21/21


ear; J. .; 6. . D-or3in an . . iceli: 1##$; PE9&lainin'

the +histle!Blo-in' rocess: %u''estions fro o-er

6heor* an Justice 6heor*P; $rgani6ation -cience 4($);

$#$–411.

ear; J. . an . . iceli: 1#G"; Petaliation 'ainst+histle!,lo-ers: reictors an EffectsP; Journal of

Applied Psychology 71; 1$7–145.

ear; J. . an . . iceli: 1#G5; POr'ani

a content analysis of whistleblowing

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