Strengthening Whistleblowing Procedures: A Key to Combatting Financial Crime in the Philippines

As financial crime continues to pose a significant threat to economies worldwide, it is imperative for countries like the Philippines to strengthen their whistleblowing procedures to promote integrity and good governance. According to Deloitte’s Asia Pacific Conduct Watch Survey report, effective whistleblowing mechanisms are crucial in detecting misconduct.

Key Findings of the Survey

Over 500 organizations across the Asia Pacific region participated in the survey, including those from the Philippines.
Fraud and conflicts of interest remain significant concerns, but whistleblowing channels are increasingly being used to report human resource grievances and sexual harassment.
There is a disconnect between the importance of whistleblowing and the level of responsibility attributed to it.

Disconnect Between Importance and Responsibility

While 58% of respondents consider whistleblowing a high priority within their organization, less than half feel that the overall responsibility for whistleblowing rests at the board level. According to Neal Ysart, Forensic Leader at Deloitte Philippines:

“This gap between what people say and what they do is one of the roadblocks to optimizing a whistleblowing program. If employees and third parties do not see actual leadership support for this policy, it is less likely they will step forward and speak up.”

Challenges in Implementing Whistleblowing Programs

Employees’ mindsets and level of awareness pose major challenges.
60% are concerned about the independence of reporting processes.
58% lack awareness of whistleblowing programs.

Overcoming Challenges

To overcome these challenges, organizations must:

Establish independent whistleblowing processes with well-communicated policies and procedures.
Employ the right metrics to measure the effectiveness of whistleblowing programs (e.g., not just relying on report volume).
Foster accountability by understanding the drivers behind whistleblowers speaking up.

As noted by Ysart: “Leaders should look at the three drivers behind whistleblowers speaking up: (1) the desire to do the right thing, (2) the need to even the score with someone, and (3) the instinct to protect oneself if complicit in wrongdoing. Understanding these drivers is important for measuring effectiveness.”

Conclusion

Raising the bar for whistleblowing in Asia Pacific is crucial. With growing recognition of the importance of whistleblowers in exposing wrongdoing and promoting good governance, organizations throughout the region must establish strong whistleblowing programs to maintain integrity and ensure good corporate governance.

By strengthening whistleblowing procedures, countries like the Philippines can promote a culture of integrity and combat financial crime effectively, ensuring the well-being of their economies and citizens.