Leo Martin, managing director of GoodCorporation comments on the Barclays whistleblower investigation
“The Barclays whistleblower scandal will be a real test for the Financial Conduct Authority and the Prudential Regulation Authority, whose rules on whistleblowing clearly state that a whistleblower’s confidentiality must be protected and that firms need to create a culture that encourages employees to raise concerns about poor behaviour.
“It is hard to see how an organisation whose CEO instructs his internal security team to identify the author of a whistleblowing letter has created an open culture whereby employees feel confident to speak out. With all that has been said about reforming behaviour in the banking sector, it seems clear that this is still a work in progress.
“Whistleblowing is an essential component of good corporate governance which needs to be embraced at the top of an organisation. An effective board will ensure that the right culture is in place, paying particular heed to employee confidence in raising concerns and to monitoring the ways in which they are dealt with. Avoiding any form or repercussion or detriment is essential.
“Employees are the eyes and ears of an organisation and are likely to spot misconduct as soon as it starts. A good business recognises that it is in the organisation’s best interests to hear of any issues long before they become a whistleblowing case, so creates an open environment where it is normal to challenge and raise concerns.
“Whistleblowing is a real challenge for businesses. In the organisations where GoodCorporation has assessed whistleblowing arrangements, we found that 37% (24 out of the 65 companies assessed) had either wholly inadequate or partially inadequate whistleblowing systems. The key reason for judging the systems as inadequate related to two key factors: poor communications about the system and lack of confidence people felt in using the system. This high rate of inadequate procedures shows clearly that this should be a focus for regulators and business alike.”
Notes to editors:
- Leo Martin, founder and director of GoodCorporation is available for interview.
- GoodCorporation launched its Whistleblowing Framework in 2014.
- GoodCorporation is a leading business ethics consultancy and has worked with over 100 organisations since 2000 to assess and improve their ethical conduct. We have worked in a wide range of commercial and public sector organisations including 17 FTSE companies, 6 CAC40 organisations as well as SMEs and not-for-profit organisations.
Media Enquiries: Sally McGeachie, Head of Communication & Marketing
T: 020 8877 5300 or firstname.lastname@example.org
19 May 2014 Leo Martin, GoodCorporation director said: “It is absolutely right that the Banking Standards Review Council should focus on ethics and behaviour. The vast majority of the problems that have damaged the sector’s reputation have stemmed from malpractice…
“World leaders gathering in the UK on Thursday for the UK Government’s international anti-corruption summit need to put enforcement at the top of the list,” said Leo Martin director of leading business ethics and compliance advisers GoodCorporation. Of the 41…
Whether or not the reputation of the finance sector is damaged beyond repair depends on the steps taken to establish a robust and honest framework within which it operates. The immediate focus of the financial crisis has quite rightly been…