In total, the new obligation will fall to about 25,000 legal entities in the Czech Republic, and some call it the second GDPR. The law is fast approaching, the Czechia must implement it by the end of this year, and Czech companies should decide whether they want to see the law as an unnecessary regulation from Brussels or an opportunity for positive change. For many of them, whistleblowing is a novelty, and in the West it is considered one of the most effective ways for companies to protect their reputation, employees, assets and corporate culture.
According to last year’s global ACFE study, as much as 43 percent of fraud detection originates in the report, which is three times more than in the internal audit. That these are not insignificant figures is underlined by the fact that the average European company loses five percent of its annual revenue due to internal fraud. In addition to the detection of past or ongoing fraud, a correctly set notification channel also has a preventive function.
It helps to establish a positive corporate culture and trust in the company, to build employee loyalty and to protect the company’s reputation. Last but not least, only the presence of this system can have a preventive effect. In addition, whistleblowing does not have to be just a tool for reporting unfair practices. More and more companies are using it as a benefit for employees who can safely and anonymously confide in anything that bothers them and it is not easy to talk about it in person.
This leads to the strengthening of an open corporate culture, but above all to less fluctuation. It is not for nothing that it is said that not all meal vouchers in the world have more value than a signal that the company’s management is listening to its employees. If we take into account that the departure of one person will cost the company an average of six to nine monthly salaries and a new colleague will reach the level of the previous two years, then listening to colleagues and solving their worries will definitely pay off.
In addition, a signal of support and expression of interest is often enough. The need to listen to employees is underlined by other surveys. According to them, 43 percent of employees are dissatisfied or demotivated at work, and one in five leaves work for a better and more decent approach to people. In addition, 23 percent of employees have experienced bullying in the workplace and 38 percent of women have experienced sexual harassment at work.
All of these problems could be avoided if company management sent a clear signal to employees that their views and concerns were important and could be confided to them without fear. Because no matter how open the company culture is in the company, there are always topics that are not easy to talk about in person. Until recently, Czech companies used physical trust boxes or, for example, telephone lines for whistleblowing.
However, they have recently been criticized not only because employees are ashamed to use them. Thus, more and more companies are more inclined to modern online solutions, which ensure the whistleblowers’ anonymity and allow them to continue to communicate with them, in the form of a chat to ask everything they need and easily resolve any suggestions. And it is the form of the notification channel that distinguishes companies that want to meet the needs of their employees and approach the law as an opportunity.
Source: E15.cz by www.e15.cz.
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