Index
Legal framework of whistleblowing in Italy
Implementation of an effective whistleblowing system
Protecting and safeguarding whistleblowers
Legal framework of whistleblowing in Italy
New Italian legislation requires companies with at least 50 employees to establish internal reporting channels that ensure confidentiality. Violations of these protections can result in significant administrative sanctions, making whistleblowing a crucial aspect of corporate governance.
Having a whisleblowing system, however, is not only a matter for structured companies with a large number of employees. Implementing such a reporting system reflects a desire to place the employee at the centre of the organisation in order to listen to his or her voice and be able to offer its customers a product and service that is always up to standard while guaranteeing its integrity and transparency.
It is therefore very important to have an effective whistleblowing system in place, ensuring regulatory compliance and promoting a culture of transparency.
The Italian legislation on whistleblowing has evolved significantly in recent years. Initially, Law 190/2012 introduced the first protections for public employees. Subsequently, Law 179/2017 extended these protections to the private sector, mainly for companies with the so-called 231 corporate governance organisational model.
The regulatory framework reached a decisive turning point with Legislative Decree 24/2023, which transposes EU Directive 2019/1937. This new legislation considerably broadens the scope of application, including both the public and private sector, with a focus on the protection of whistleblowers.
In particular, as of 17 December 2023, all companies with at least 50 employees must have internal reporting channels. These channels must guarantee, through encryption tools, the confidentiality of the identity of the reporter and the content of the report. In addition, companies must:
- Appoint a specially trained report handler
- Provide feedback within 7 days of receipt
- Conclude analysis within 3 months
Violations carry significant administrative penalties. ANAC, the Italian Anti-Corruption Authority, can apply fines of between €10,000 and €50,000 for:
- Failure to establish reporting channels
- Non-compliant procedures
- Retaliatory behaviour towards whistleblowers
- Breach of confidentiality obligation
Therefore, companies must pay particular attention to the implementation of compliant systems, as sanctions may also include publication of the measure, resulting in reputational damage.
Implementation of an effective whistleblowing system
An effective whistleblowing system requires first and foremost a well-organised structure that guarantees security and confidentiality. According to recent studies, 37% of companies still do not have adequate technological tools to ensure the confidentiality of whistleblowing. Reporting channels must be easily accessible and guarantee the anonymity of the reporter. In particular, the system must include:
- Written and oral communication channels
- Standardised management procedures
- Identity protection measures
- Alert monitoring system
Modern digital platforms offer robust functionalities for the secure management of reports. Technological solutions also make it possible to monitor the progress of investigations and maintain detailed records.
Effective management of reports requires timeliness and accuracy. The system must guarantee an initial response within seven days and complete handling within three months.
Protecting and safeguarding whistleblowers
The protection of whistleblowers is a fundamental pillar to ensure the effectiveness of the whistleblowing system. The Italian legislation, through Legislative Decree 24/2023, establishes concrete measures to protect those who decide to report irregularities.
The confidentiality of the whistleblower's identity is guaranteed through strict security protocols. In fact, personal information is only accessible to authorised personnel and is kept for a maximum of five years after the conclusion of the procedure.
The law categorically prohibits any form of retaliation against whistleblowers. In particular, retaliation is considered:
- Dismissal, demotion or transfer
- Adverse changes in working conditions
- Discrimination or unfavourable treatment
- Reputational or economic damage
Similarly, protection also extends to facilitators, family members up to the fourth degree of kinship and colleagues of the whistleblower working in the same work context.
In the case of legal proceedings, the report may only be used if indispensable for the defence of the accused and with the written consent of the whistleblower. Moreover, the burden of proof in the event of alleged retaliation lies with the person who has carried out the conduct complained of.
Cultural change management
Cultural transformation is a decisive element for the success of any whistleblowing system. According to recent studies, companies with a whistleblowing-friendly organisational culture experience a 17% increase in productivity and a significant reduction in turnover.
The company must promote effective training on whistleblowing rights and obligations. Indeed, regular training keeps ethical practices at the centre of attention in the workplace, reminding employees of the importance of honesty and responsibility.
Clear and transparent communication is key to building trust in the system. Organisations must communicate effectively:
- Available reporting channels
- Procedures for handling reports
- Identity protection measures
- Updates on reporting results
Corporate transparency is defined as the act of being open and honest with all stakeholders. Therefore, companies that adopt transparent reporting tools are perceived as more sustainable by employees, suppliers, customers and partners.
A transparent working environment fosters trust and open communication, strengthening relationships between employees and employers. In addition, sharing selected information with employees increases trust in the whistleblowing system, with around a third of the world's most ethical companies regularly sharing anonymised statistics on whistleblowing cases.
Fostering a whistleblowing-friendly organisational culture enables issues to be identified and addressed before they can cause serious damage to the organisation. This approach not only improves risk management but also fosters a collaborative and responsible working environment where innovation and progress are actively encouraged.
Conclusion
The implementation of an effective whistleblowing system is a strategic necessity for modern companies. Admittedly, the regulatory and organisational challenges may seem complex, but the benefits far outweigh the efforts required.
Compliance with new regulations should not only be seen as a legal obligation. In fact, a well-structured reporting system can become a valuable tool for improving corporate governance and preventing potential reputational and economic damage.
Companies that take a proactive approach to whistleblowing, investing in appropriate technology and staff training, demonstrate a concrete commitment to ethics and transparency. Consequently, these investments result in a safer and more productive working environment.
It becomes crucial to view whistleblowing therefore not only as a regulatory requirement, but as an opportunity to build a stronger and more resilient organisation. The key to success lies in creating a corporate culture that values integrity and transparency, supported by appropriate tools and processes.