Weekly Wrap – 21st August 2013

 

Video Highlights

0.42 – “I would be killed if I implemented a whistleblowing system at my organisation”

1.15 – What is an effective whistleblowing system?

1.33 – Have you seen accounting manipulation?

1.55 – Does your system work?  And how do you know that it works?

Video Transcription

Hi I am Tom McLeod, Managing Consultant of McLeod Governance.

A couple of years ago I was invited to the Philippines to speak about the implementation of a whistle blowing system at the organisation that I was working for at the time.

I delivered the presentation well; indeed my boss thought it went very well.

But then a hand went up in the audience and I took the question.

The gentleman said to me “I would be killed if I implemented a whistle blowing system in my organisation.”

Thinking that he was joking I said “it nearly killed me as well”.

And he said “no I don’t think you understand!”

“I would be literally killed if I implemented a whistle blowing system at my organisation.”

“My family would be targeted. I would be targeted. That is why I don’t implement a whistle blowing system.”

It was one of the more sobering moments in my career.

And from that moment onwards it has always made me stop and think – what is an effective whistle blowing system?

And that came back to me this week when I saw on the Stanford University Rock Center for Corporate Governance a survey on whether you – as a respondee – have seen accounting manipulation.

It really struck me – are whistle blowing systems effective or not if we need to have anonymous surveys such as that.

Essentially the underlying tenet of that survey is that the whistle blowing systems that we have at the moment don’t work.

So my question for you today is does your system work?

And how do you know that it works?

This is the link to the mentioned survey: https://stanford.qualtrics.com/SE/?SID=SV_1H2IdBUk1yuDT6t

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