The Whistleblower Protection Act
The German Whistleblower Protection Act (HinSchG) serves to implement the EU Whistleblower Directive of October 23, 2019.
It obliges organizations with more than 50 employees and local authorities with more than 10,000 inhabitants to introduce a reporting platform for the anonymous submission of information.
The aim is to strengthen the protection of whistleblowers as well as the persons affected by the highly confidential information, while at the same time ensuring that they are not threatened with any disadvantages as a result of the publication of their reports.
Independent of the upcoming legal obligation, a whistleblower system also offers further advantages for organizations:
• Support for internal quality assurance through concrete reports on faulty processes or inadequate performance.
• Avoidance of image and reputation damage, as hints can first be addressed and discussed internally before they are made public.
• Achieving a preventive effect to reduce breaches of duty, as there is now an increased risk that these can be reported.
The implementation of the Whistleblower Protection Act through an IT-supported whistleblower system enables confidential and encrypted communication between the whistleblower and the person handling the whistleblowing – while maintaining anonymity.
By setting up the whistleblower system, you fulfill the legal obligation and also create trust in the internal reporting office. In this way, violations can first be addressed internally before they find their way to the public and thus potentially cause enormous damage to your image. Critical issues can be clarified internally and resolved proactively.