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Remedies for whistle blowers in Zimbabwe are few and far between whistle
blowers` hotline named “ tip offs anonymous” exists and is hosted by Deltoids
and Touch. Hotlines carry with them the disadvantage that the issues involved
in whistle blowing are kept secret, not withstanding the fact that such issues
are in the public interest.
Write a critique of whistleblower hotlines and explore the possibility for their
wider and use in Zimbabwe of digit able media such as whistle blowers,
websites, face books, twitter, web press whistle blower cares. In key whistle
blowers cases in Zimbabwe newspapers and national media have general
failed whistle blowers in their attempt to bring matter of ethical concern to
public matters. As part of your submissions you may wish to create one or two
specimen entries for a whistle blower website Zimbabwe.
Introduction
Whistle blowing is regarded as a duty of employees to the business.
Employees need to be of utmost good faith to the organisation they work for.
They should expose all malpractices that may either be illegal or immoral, or
both. A person who reveals wrong doing within an organization to the public
or to those in positions of authority is refereed as a whistle blower. The term
whistleblower originated from the practice of English police officers, who
normally had inform others when a crime has been committed. The whistle
would alert other law enforcement officers and the general public of danger.
Malpractice
The malpractice can be perpetrated against the organisation. The other
employees might be defrauding the organisation through malpractices such
as thefts of stocks ,assets and overstating the expenses such as transport or
travel and subsistence claims or even claiming expenses not due to
them(Asare, T., 2004). This type of whistle blowing is referred as internal
whistle blowing. The whistle blower is referred as the informer (Asare, T.,
2004).
External whistle blowing occurs when this is done by the organisation to
outside party or organisation, the local community and customers (Asare, T.,
2004).
The other organisation might be defrauded by another organisation such as
an organisation registered for the purposes of committing fraud (Asare, T.,
2004).
. The public might be exposed to hazardous pollution or being sold the unsafe
goods.
The aim of the whistle blower is to correct the anomaly, to forestall it or
prevent its recurrence, permit the affected to be compensated, punish the
guilty people or the organisations (Asare, T., 2004).
.
The exposure of these malpractices should be done to the top level of the
organisation so that they will address the issues and stop the corrupt
activities. If the issues have been reported to the irrelevant level, the issues
will barred from reaching the relevant levels. So the reports should go to the
relevant level such as the executives of the organisation (Asare, T., 2004).
The hotlines should be directed to the relevant levels.
When the malpractice is of an external nature, the hotlines needs to be
directed towards the police, media, regulatory bodies (Asare, T., 2004).
.It is mainly to ensure that the event gets attention such as the disposal of raw
sewerage in Lake Chivero. They were a public outcry and the ministry of
national parks and wild life usually will take a leading role so that they protect
the fish in the lake. The disposal will be toxic to the organisms living under
water (Asare, T., 2004).
.
Whistle-blowing has become an increasingly important tool worldwide to
combat corruption and corporate misconduct (Asare, T., 2004).
. Whistle-blowing designates employees’ decision to disclose unethical,
immoral or illegal action at work to an authority figure (supervisor, media or
regulatory bodies). Organizations’ often face significant challenges in their
efforts to promote whistle-blowing internally. (Asare, T., 2004).
Impediments to Whistle-blowing
Employees, in particular, can refrain from blowing the whistle for various
reasons. Cultural norms, for example, may influence employees, resulting in
divided employees’ loyalties among family, authority and the organization.
There is also the dilemma of whistle-blowing, which attempts to weigh the
disclosure of wrongdoings against the option to remain silent.
Employees fail to speak out against others in the organization for fear of being
perceived as violating confidentiality and loyalty (Adam, R., 2004). They could
be singled out and considered as threats to the organization (Adam, R.,
2004). They could as well face retaliation of being fired, listed for redundancy,
transferred to undesirable locations, physically abused, received death
threats, and even murdered(Adam, R., 2004). Legislations to protect whistle-
blowers are essential to encourage reporting of corporate misconduct (Adam,
R., 2004). The hotlines for whistle blowing have failed in most organizations
because you are made to sign the oath of secrecy when you join the
organization (Adam, R., 2004). This prohibits you to go out to the public when
there are ethical issues which need to be disclosed. The employees in
Zimbabwean organizations would be forced to follow the internal reporting
channels. In most cases the high ranking people will always try to put the
issues under the carpet (Adam, R., 2004). So the issue of hotlines in
Zimbabwe always fails to work as long as they are directed to the pertrators.
People in Zimbabwe do not use the hotlines greatly for blow the whistle
because of fear of retaliation, fear of losing their relationships at work and
outside work. Because the majority of cases are very low-profile and receive
little or no media attention and because whistleblowers who do report
significant misconduct are usually put in some form of danger or persecution,
the idea of seeking fame and glory may be less commonly believed(Adam, R.,
2004)
Wwhistleblower hotline as a powerful tool to fight against fraud.
In nearly all organisations fraud represents a significant threat to the
organizational coffers. Nearly half of all companies worldwide have been
victims of economic crime in the past two years, costing them an average of
US $1.7 million (pricewaterhouse, 2005)
Hotlines repeatedly have proven their ability to detect and deter illegal
behaviour in Zimbabwe. The police have even given the public the suggestion
box or even the hotlines specifically for reporting the frauds in the country.
What has remained very complex in Zimbabwe is the rewarding system of the
whistle blowers. In several cases the whistle blower ends up be liked to the
case which now promotes the whistle blowers to remain anonymous. Some
whistle blowers have ended up being locked up because they is no regulation
which promotes whistle blowers.
According to the ACFE's 2004 Report to the Nation on Occupational Fraud
and Abuse, fraud losses are reduced by nearly 60 percent when a hotline is
present. In fact, fraud is discovered via tips 40 percent of the time, making tips
the No. 1 method of fraud detection. Internal audit procedures, on the other
hand, were the second most common method of fraud detection, accounting
for 24 percent of discoveries.
Anonymous reporting
One in five American workers possess personal knowledge of workplace
fraud, according to a 2002 study sponsored by Ernst & Young (LLP) Lower
Layer Protocol , and 39 percent are more likely to report fraud if they could
remain anonymous. One possible explanation for the desire to remain
anonymous is the fear of retaliation
The Ernst & Young survey highlights employees' preference for telephone
hotlines as a whistle blowing tool. In fact, 57 percent of respondents stated
they would use a telephone hotline to report unethical conduct not conforming
to professional ethics. While only 20 percent would write an anonymous
letter, and just 16 percent would use an anonymous Web site.
In Zimbabwe internet has become a more used tool to report frauds. During
the past decade most organisations have been overpricing their goods and
services. A lot of whistle blowing through suggestion boxes, telephones and
internet was done. This has seen the wholesalers such as Muhammed Musa
being arrested by the policy for hording goods and not banking the cash
resources which were scarce. Telephones has been widely used in Zimbabwe
because of their essay access. The problem in Zimbabwe is that they are no
several options for reporting frauds to accommodate individual preferences.
Promotions of hotlines in Zimbabwe
Organizations in Zimbabwe needs to established an all day external
telephone hotline.
Organisations should consider outsourcing the services and may give whistle
blowers a greater sense of security and confidentiality so that he could divulge
all the unethical practices that will be happening with the community or the
organisation. Others operate their own internal hotline, which is answered by
one or more persons during regular or extended business hours. After the
business hours the lines goes to the voice mail which will not be ideal for
whistle blowing. According to 2005 research by The Network Inc., a workplace
reporting services firm, nearly 50 percent of all hotline calls are made at night
or on weekends, and these calls deserve the same treatment as contact
made during the day. Organizations in Zimbabwe that choose to operate an
internal hotline during business hours should adopt a hybrid approach and
outsource the after-hours component. It is mainly the whistle blowers should
be able to access your hotline at what ever time convenient to them. A
common example is at Telone Pvt (Ltd) where a member of the society sees a
cable for telephone line being stolen at night. The individual should
immediately for the security at Telone on the hotline for the security or the
hotline for the police.
Hotline best practice
IN Zimbabwe we need to adopt the recommendations of the American
Institute of certified Public Accountants (AICPA) which recommended that all
organisations should seriously consider establishing a whistleblower hotline
so as to realise the benefits of whistle blowing (www.aicpa.org) . So in
Zimbabwe organisations such as deltoids and touch, KPMG an auditing firms
should ensure that firms in Zimbabwe adopts the recommendations of AICPA(
www.aicpa.org).
Among the AICPA's suggestions are some practical ideas for implementing
and maintaining an effective whistleblower hotline program which are :
(a) Cultivate a vigorous whistleblower program.
Use dedicated, well-communicated feedback channels, such as the telephone
or Web, to provide a confidential way for employees, vendors, contractors,
and other stakeholders who should report issues from every organization
location. These stakeholders should speed up the progress reports and the
distribution of all cases to the responsible authorities within the hierarchy of
the organisation and lastly they need to audit the design and the effectiveness
of this internal control on a regular basis (www.aicpa.org).
(b) Creating a Whistle blowing Culture
Create a Policy
A policy about reporting illegal or unethical practices should include
(Alexander Hamilton Institute,2002)
Formal mechanisms for reporting violations, such as hotlines and mailboxes
Clear communications about the process of voicing concerns, such as a
specific chain of command, or the identification of a specific person in the
organization, such as an ombudsman or a human resources professional
(Alexander Hamilton Institute,2002)
Clear communications about bans on retaliation (Alexander Hamilton
Institute,2002)
In addition, a clear connection should exist between an organization's code of
ethics and performance measures. For example, in the performance review
process, employees can be held accountable not only for meeting their goals
and objectives but also for doing so in accordance with the stated values or
business standards of the company (Alexander Hamilton Institute,2002).
Get Endorsement from Top Management
Top management, starting with the CEO, should demonstrate a strong
commitment to encouraging whistle blowing through whistle blowing
(Alexander Hamilton Institute,2002). This message must be communicated by
line managers at all levels, who are trained continuously in creating an open-
door policy regarding employee complaints (Alexander Hamilton
Institute,2002).
Publicize the Organization's Commitment.
To create a culture of openness and honesty, it is important that employees
hear about the policy regularly (Alexander Hamilton Institute,2002). Top
management should make every effort to talk about the commitment to ethical
behavior in memos, newsletters, and speeches to company personnel
(Alexander Hamilton Institute,2002). Publicly acknowledging and rewarding
employees who pinpoint ethical issues is one way to send the message that
management is serious about addressing issues before they become
endemic(Alexander Hamilton Institute,2002).
Investigate and Follow Up
Managers should be required to investigate all allegations promptly and
thoroughly, and report the origins and the results of the investigation to a
higher authority (Alexander Hamilton Institute,2002). For example, at IBM, a
long-standing open-door policy requires that any complaint received must be
investigated within a certain number of hours (Alexander Hamilton
Institute,2002). Inaction is the best way to create cynicism about the
seriousness of an organization's ethics policy (Alexander Hamilton
Institute,2002).
Assess the Organization's Internal Whistle blowing System.
Find out employees' opinions about the organization's culture vis-à-vis its
commitment to ethics and values (Alexander Hamilton Institute,2002). For
example, Sears conducts an annual employee survey related to ethics
(Alexander Hamilton Institute,2002). Some questions are: Do you believe
unethical issues are tolerated here? Do you know how to report an ethical
issue?
(c)Staff the hotline with trained interviewers
Internal auditors will receive better information if a trained interviewer is
available to ask the right questions any time of day or night. In many cases,
individuals who call fraud hotlines are anxious maybe even somewhat
reluctant to offer details and may provide information in a disjointed manner.
The interviewer should have specialized training to help callers remain calm,
cover all aspects of the topic thoroughly. The interviewers should pay
attention to detail and ensure that they is a standard way of reporting (Asare T
,2004).
(d) Avoid the use of voice mail
In Zimbabwe whistle blowers are concerned of possible retaliation from the
managers or perpetrators so to leave their messages on the answering
machine will cost their life. A sample of people’s voice to be used for voice
recognition or security systems. or caller identification would be recognized,
or who might receive that message. If a message is left, it can be incomplete
or disorganized (Asare T, 2004)
Moreover, anonymous messages left on voice mail leave investigators
without the opportunity to gain additional information from the caller (Asare T,
2004.
(e) Nurture an ongoing dialogue
Assign a unique identification number or password to each anonymous caller
and direct individuals to call back within a predetermined time. The unique
number or password enables the person to call back to offer additional
information while maintaining anonymity. This gives investigators a chance to
review information and come up with additional questions to be asked
(Pricewaterhouse-Coopers, 2005). If the whistle blower calls back he will
provides additional information and this process is helpful as it will clarify grey
areas as the wheel unfolds (Pricewaterhouse-Coopers, 2005). Unfortunately,
according to 2005 research by The Network, roughly 70 percent of
anonymous callers never call back, so it's crucial that the initial report be as
detailed as possible.
(f) Protect confidentiality.
Ensure the numbers of the whistle blowers are kept private and confidential.
At any time these numbers should be kept private and not to reflect on the
telephone handsets or base stations of the called party. If its internet the e-
mail tracking system should not be used as this will violate the whistle
blower’s rights.
The power of a hotline lies in its ability to open the lines of communication.
The organisations need to create venues for interactive communication mostly
with the anonymous parties. It is crucial because many people receive unclear
e-mails, those that done quickly to be accurate or confusing and even
misleading the organisation.
Face to face conversations or live hotline interviews generate more detailed
information than one-way communication.
The ability to clarify information becomes critical for the auditors attempting to
investigate an allegation The assertion, claim, declaration, or statement of a
party to an action, setting out what he or she expects to prove
(Pricewaterhouse-Coopers, 2005).
If the allegations in a plaintiff's complaint are insufficient to establish that the
person's legal rights have been violated, the defendant can make a vague or
conflicting information received from an anonymous party can lead to
frustration for auditors. The hotline process should avoid this situation through
a two-pronged approach of getting detailed information from anonymous
parties and establishing a mechanism for ongoing dialogue (Pricewaterhouse-
Coopers, 2005).
.
Ideally, interviewers also should have supporting technology to assist in
tracking the information reported and pointing out any need for clarification.
To improve the quality of information received, everyone conducting
interviews should use an interview process that is standardized sufficiently to
cover key information consistently (Pricewaterhouse-Coopers, 2005).
ETHICS COMMUNICATION
There is no question that the tips received via a hotline can help auditors
detect fraud within an organization. But the presence of a hotline in
conjunction with a well-communicated, visible ethics campaign can also act as
a significant fraud deterrent.
Creating awareness of workplace ethics diminishes fraudulent activity,
according to the Ethics Resource Centre’s National Business Ethics business
ethics, the study and evaluation of decision making by businesses according
to moral concepts and judgments. Ethical questions range from practical,
narrowly defined issues, such as a company's obligation to be honest with its
customers, to broader social Survey (NBES NBES Narrow Beam Echo
Sounder ) of 2003. The NBES found a strong correlation between reporting
misconduct and ethics communication programs. The best campaigns discuss
the importance of ethical behaviours and use a positive tone to help
employees feel comfortable about reporting unethical behaviour. The purpose
and confidential nature of the hotline should always be mentioned. Hotline
communication also should discuss the types of behaviours that are expected,
such as honesty, versus those that are not condoned, such as accepting gifts
from vendors or awarding business to relatives. By providing real-world, easily
understood examples that illustrate expectations, the ethics program will act
as a deterrent to unethical or illegal behaviour. This will nurture an ethical
environment and show honest employees they can help the organization by
reporting harmful activities. An ethics program focused on appropriate
behaviour also shows employees they are accountable for their actions
(Bagley, Constance E,1991)
The most effective ethics programs plan in advance for both launch and
ongoing communication to sustain awareness of ethics and the hotline
(Bagley, Constance E,1991). This communication should be directed toward
suppliers as well as employees. This is imperative because, just as internal
employees report issues like expense report abuse, the employees of vendors
have been known to reveal fraud schemes such as deliberate over-billing or
requests for kickbacks (Bagley, Constance E,1991).
Beyond reaching the right people, doing so with frequency is critical for the
success of the hotline as a fraud detection tool(Bagley, Constance E,1991).
Like any operational process, the hotline will work only if people use it, and
people will not remember the hotline unless they hear about it more than once
a year. This point is best illustrated by the world of consumer advertising.
Advertising industry research indicates that consumers are exposed to 1,500
promotional messages daily (Bagley, Constance E,1991). Given the flood of
information consumer’s process, it is hardly surprising they do not recall what
they heard six months ago. Repeating hotline information will help keep it
fresh in the minds of the intended audience. Keeping messages simple is also
critical for success, because it can help employees take hold of the
information quickly. Another lesson to be learned from advertising is to
incorporate multiple media for sending messages about ethical behaviour.
Employee ethics training can also help strengthen hotline effectiveness. The
U.S. Federal Sentencing Guidelines the Federal Sentencing Guidelines are
rules that set out a uniform sentencing policy for convicted defendants in the
United States federal court system. The Guidelines are the product of the
United States Sentencing Commission and are part of an overall federal
sentencing reform, which were strengthened in 2004, now recommend that
organizations provide ethics training at all levels. Complying with this
voluntary guideline Medtalk a series of recommendations by a body of experts
in a particular discipline. See Cancer screening guidelines, Cardiac profile
guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion
guidelines. Ultimately will help internal auditing by generating hotline tips. It's
important to ensure that ethics training includes a section on coming forward
with information about unethical behaviour.
Dissemination procedures
Once a tip is received via an anonymous hotline, it must be handled discreetly
and in accordance with established procedures ( Association of Certified
Fraud Examiners, 2004). Report-dissemination procedures should protect
employees from retaliation, while safeguarding internal auditors from
accusations of improper handling of the investigation (Association of Certified
Fraud Examiners, 2004). To ensure tips reach the appropriate individuals
timely, procedures can be put in place to route reports automatically to
multiple recipients immediately upon receipt for prompt analysis and action
(Association of Certified Fraud Examiners, 2004).
Dual dissemination practices offer a helpful method for ensuring that
complaints don't get overlooked (Association of Certified Fraud Examiners,
2004). Dual dissemination simply involves having an appropriate official in
addition to the investigative authority receive copies of all hotline reports as a
secondary layer of dissemination (Association of Certified Fraud Examiners,
2004). For example, reports of financial irregularities automatically should be
sent to internal auditing, the audit committee, and potentially an external
investigator. Sending all reports to an ethics officer, as a secondary tier, is
another option. This ensures every allegation will receive the attention it
deserves through review by multiple individuals.
This safeguard not only helps internal auditing, but also protects the
organization from potential criticism that the reporting system is vulnerable to
interference from top executives. Dual dissemination can also act as a
protective device in cases where the accused party oversees the review of
fraud allegations. Given the potential for confusion and the risk associated
with errors, it is a better practice to have multiple individuals look at all reports
than try to reroute them on a case-by-case basis( [email protected]).
For time-sensitive issues, organizations should consider accelerated
notification procedures.
To return in thought or discourse.
Fraud likely to occur again within the next 24 hours, appropriate officers
should be alerted immediately to catch the culprit during the act. The group
responsible for implementing the hotline must agree on a list of critical topics
that require immediate notification 24 hours a day, such as threats of violence.
Key parties should have a shared understanding of how such a situation will
be handled.
Getting results
Virtually all organizations are vulnerable to fraudulent activity, and the losses
associated with fraud can be devastating:
To overwhelm; confound; stun: was devastated by the rude remark. . The
good news is that there are many steps internal auditors can take to curb
these losses. By following best practices, with fraud prevention in mind as a
deliverable, every organization can implement a robust, confidential reporting
mechanism that yields effective results ([email protected])
Undoubtedly, face to face conversations and other interactive methods of
collecting feedback are best( Hoffman, W. Michael, and Frederick, Robert E,
1995). However, some organizations may opt to broaden the whistleblower
program to include alternative reporting mechanisms such as Websites. When
doing so, it's important to prioritize
To arrange or deal with in order of importance (Hoffman, W. Michael, and
Frederick, Robert E, 1995).
One-way communication below interactive methods to ensure that the
organization receives feedback via its preferred methods ( Hoffman, W.
Michael, and Frederick, Robert E, 1995). In fact, Web forms are inherently
flawed. Because the medium is geared toward brief, instant communication
( Hoffman, W. Michael, and Frederick, Robert E, 1995).
Still, Web forms may offer some benefit if configured well.
To design, arrange, set up, or shape with a view to specific applications or
uses: correctly. When examining a Web option as a reporting mechanism,
make sure it such that the web reporting form has sufficient structure to
deliver specific results. A Web form must offer free-form areas for providing a
narrative, but also must collect specifics that will help the agency understand
and manage the response. For example, basic location information needs to
be collected, given the likelihood that the agency operates facilities in multiple
locations. One inherent weakness of Web reporting is the ability to "fool" the
system by entering gibberish into a field. If the field is critical for the
investigation, like location information, this can be devastating. Remember,
general information about a fraud scheme is useless if you have no idea
where or whom to investigate.
Another issue to consider is the possibility that the individual reporting a
concern will select the wrong category of concern. This categorization may
determine the report recipients.
Assigning an appropriate category can be more complex than it might seem.
For example, an employee who does not take the time to choose the right
category may submit a report about financial irregularities under "Employee
Relations." As a result, internal auditing and the audit committee may not
receive timely notice of an issue related to Sarbanes-Oxley compliance. This
not only wastes the time of those who receive the report, but also delays the
investigation.
References
(1) Adam, R., 2004. “Enron to Parmalat”, International Herald Tribune
( 2) Asare, T.,2004. “Business Ethics and Fraud”, ACCA Ghana Branch
Centenary Celebration Symposium
(3) Association of Certified Fraud Examiners, 2004. “Report to the Nation on
Occupational Fraud and Abuse”.
(4) Corporate Fraud policy, www.acfe.com
( 5)Organization for Economic Cooperation and Development (OECD), 1999,
“Principles of Corporate Governance”, (page 7).
(6)PricewaterhouseCoopers's (PwC) and Martin-Luther University, 2005.
“Global Economic Crime Survey”, Halle-Wittenberg, Germany.
(7)Pricewaterhouse-Coopers' Global Economic Crime Survey 2005.
(8)Alexander Hamilton Institute. Whistleblowing: A New Perspective on an Old
Issue. New Jersey, 2002.
(9)Bagley, Constance E. Managers and the Legal Environment: Strategies for
the 21st Century. St. Paul, Minn.: West Publishing Co.,1991.
(10) Behrman, Jack N. Essays on Ethics in Business and the Professions
Englewood Cliffs, N.J.,: Prentice-Hall, 1988.
(11) Hoffman, W. Michael, and Frederick, Robert E., Eds. Business Ethics:
Readings in Corporate Morality. New York: McGraw-Hill, 1995.
(12)Miceli, Marcia P., and Near, Janet P. Blowing The Whistle: The
Organizational and Legal Implications for Companies and Employees. New
York: Lexington Books, 1992.
(13) Miethe, Terance D. Whistleblowing at Work: Tough Choices in Exposing
Fraud, Waste and Abuse on the Job. Boulder, Colo.: Westview Press, 1999.
(14) Nader, Ralph, Petkas, Peter J., and Blackwell, Kate, eds. Whistle
Blowing: The Report of the Conference on Professional Responsibility. New
York: Grossman, 1972.
(15)Trevino, Linda K. and Nelson, Katherine A. Managing Business Ethics:
Straight Talk About How to Do It Right. New York: John Wiley and Sons,
1999.
(16)Vinten, Gerald, ed. Whistleblowing: Subversion or Corporate Citizenship?
New York: St. Martin's Press, 1994.
(17)Westin, Alan F., Kurtz, Henry I., and Robbins, Albert. Whistleblowing:
(18)Loyalty and Dissent in the Corporation. New York: McGraw-Hill, 1981.
(19)Lilanthi Ravishankar is a researcher for the Business and Organizational
Ethics Partnership( 2003)This report was prepared for the partnership.
(20) [email protected])