Whistleblowing: A Key Component in Switzerland’s Corporate Governance Landscape

Zurich - Effective internal control systems and risk management are essential for companies operating in Switzerland, as emphasized by the Swiss Code of Best Practice for Corporate Governance. One critical aspect of these systems is whistleblowing, which enables employees to report misconduct anonymously.

The Importance of Whistleblowing

According to Article 321 a Paragraph 1 of the Swiss Code of Obligations (CoO), employees have an obligation to uphold their employer’s justified interests in good faith. Additionally, Article 321 a Paragraph 4 CoO requires confidentiality. As such, employees are expected to first report any concerns internally before seeking external action.

This hierarchical approach is crucial for maintaining trust and avoiding reputational damage. If internal reporting mechanisms fail, employees may only disclose information to authorities if there is a legitimate public interest concern. As a last resort, they might choose to go public, potentially triggering a corporate crisis.

The Reality of Whistleblowing in Switzerland

A recent survey by Ethics at Work found that:

• 41% of Swiss employees have reported misconduct
• More than half remain silent due to fear of retaliation

This highlights the importance of fostering an open culture and providing adequate means for reporting concerns.

Best Practices for Whistleblowing

Companies must invest in comprehensive ethics programs and ensure that staff handling whistleblowing cases are equipped to handle sensitive information. It is also essential to demonstrate swift action on reported issues to build trust among employees.

• Integrate ESG considerations, data protection, and modern slavery into whistleblowing policies
• Ensure that staff handling whistleblowing cases are trained to handle sensitive information
• Demonstrate swift action on reported issues to build trust among employees

Deloitte’s Whistleblowing Solution

To support companies in managing whistleblowing caseloads, Deloitte has launched its Conduct Watch solution. This innovative platform helps organizations respond to suspected fraud and misconduct while maintaining transparency and accountability.

Who Should Read This Article?

Corporate executives, Board members, and General Counsels are responsible for responding to suspected fraud within their organization. Having a playbook and checklists on hand is essential for effective response and prevention of uncontrolled escalation into corporate crises.

For further insights on how to respond to fraud, we recommend our article “Responding to Fraud: Doing Nothing is Not an Option”.

Contact Us

Philipp Lüttmann Partner Forensic and Financial Advisory Swiss Sports Business Group

Arjan Hulsbos Director, Forensic Technology Deloitte Switzerland

For more information on Deloitte’s whistleblowing solution or to discuss your organization’s whistleblowing needs, please contact us at [insert contact information].