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ISSUE 400b

Staff whistleblowing a growing HR issue

Corporate scandals such as those that affected Enron and WorldCom have focused the attention of companies around the world on their governance and conduct. An important part of the debate has been how to enable employees to report wrongdoing or questionable behaviour. The 2002 Sarbanes–Oxley Act requires US companies to put in place a staff whistleblowing mechanism and a number of recent EU initiatives have pointed in the same direction.

Whistleblowing has employment relations implications and, in Europe, France seems to be leading the way in dealing with them. In 2005, it adopted rules on authorising staff whistleblowing schemes from a data protection and privacy perspective. Since then, 600 companies have introduced schemes in line with these rules. Now, a government-commissioned report has proposed a framework for company procedures in this area, covering matters such as the employment law aspects and the role of workers’ representatives.

As part of the growing concern about corporate governance and social responsibility, most leading multinationals have now introduced some form of "code of conduct" or "code of ethics" to guide their behaviour. Especially in the case of France-based companies, these include staff whistleblowing schemes – a good example is a code recently adopted by Bouygues, the construction and media multinational.

Mark Carley, Editor, European Employment Review

 

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Whistleblowing is currently a key issue in French human resources management. More companies are introducing schemes to enable employees to report wrongdoing, often contained in corporate "codes of ethics". In March 2007, a government-commissioned report proposed a framework for company procedures in this area. We look at the report’s main recommendations and at the example of the Bouygues construction and media group, which recently adopted a code of ethics that includes whistleblowing rules.

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From the beginning of 2007, the new centre-right government has cut the benefits paid by Sweden's trade-union-run unemployment insurance funds (UIFs), as well as toughening the conditions for receipt of benefits and increasing workers' contributions. We look at the effects of the controversial reforms on UIFs and union membership, and at the unions' response, as well as the wider debate over the role of unemployment insurance and whether it should remain voluntary or be made compulsory.

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