Remedies for whistle blowers in Zimbabwe are few and far between whistle

blowers` hotline named “ tip offs anonymous” exists and is hosted by Deltoids

and Touch. Hotlines carry with them the disadvantage that the issues involved

in whistle blowing are kept secret, not withstanding the fact that such issues

are in the public interest.

Write a critique of whistleblower hotlines and explore the possibility for their

wider and use in Zimbabwe of digit able media such as whistle blowers,

websites, face books, twitter, web press whistle blower cares. In key whistle

blowers cases in Zimbabwe newspapers and national media have general

failed whistle blowers in their attempt to bring matter of ethical concern to

public matters. As part of your submissions you may wish to create one or two

specimen entries for a whistle blower website Zimbabwe.

Introduction

Whistle blowing is regarded as a duty of employees to the business.

Employees need to be of utmost good faith to the organisation they work for.

They should expose all malpractices that may either be illegal or immoral, or

both. A person who reveals wrong doing within an organization to the public

or to those in positions of authority is refereed as a whistle blower. The term

whistleblower originated from the practice of English police officers, who

normally had inform others when a crime has been committed. The whistle

would alert other law enforcement officers and the general public of danger.

Malpractice

The malpractice can be perpetrated against the organisation. The other

employees might be defrauding the organisation through malpractices such

as thefts of stocks ,assets and overstating the expenses such as transport or

travel and subsistence claims or even claiming expenses not due to

them(Asare, T., 2004). This type of whistle blowing is referred as internal

whistle blowing. The whistle blower is referred as the informer (Asare, T.,

2004).

External whistle blowing occurs when this is done by the organisation to

outside party or organisation, the local community and customers (Asare, T.,

2004).

The other organisation might be defrauded by another organisation such as

an organisation registered for the purposes of committing fraud (Asare, T.,

2004).

. The public might be exposed to hazardous pollution or being sold the unsafe

goods.

The aim of the whistle blower is to correct the anomaly, to forestall it or

prevent its recurrence, permit the affected to be compensated, punish the

guilty people or the organisations (Asare, T., 2004).

.

The exposure of these malpractices should be done to the top level of the

organisation so that they will address the issues and stop the corrupt

activities. If the issues have been reported to the irrelevant level, the issues

will barred from reaching the relevant levels. So the reports should go to the

relevant level such as the executives of the organisation (Asare, T., 2004).

The hotlines should be directed to the relevant levels.

When the malpractice is of an external nature, the hotlines needs to be

directed towards the police, media, regulatory bodies (Asare, T., 2004).

.It is mainly to ensure that the event gets attention such as the disposal of raw

sewerage in Lake Chivero. They were a public outcry and the ministry of

national parks and wild life usually will take a leading role so that they protect

the fish in the lake. The disposal will be toxic to the organisms living under

water (Asare, T., 2004).

.

Whistle-blowing has become an increasingly important tool worldwide to

combat corruption and corporate misconduct (Asare, T., 2004).

. Whistle-blowing designates employees’ decision to disclose unethical,

immoral or illegal action at work to an authority figure (supervisor, media or

regulatory bodies). Organizations’ often face significant challenges in their

efforts to promote whistle-blowing internally. (Asare, T., 2004).

Impediments to Whistle-blowing

Employees, in particular, can refrain from blowing the whistle for various

reasons. Cultural norms, for example, may influence employees, resulting in

divided employees’ loyalties among family, authority and the organization.

There is also the dilemma of whistle-blowing, which attempts to weigh the

disclosure of wrongdoings against the option to remain silent.

Employees fail to speak out against others in the organization for fear of being

perceived as violating confidentiality and loyalty (Adam, R., 2004). They could

be singled out and considered as threats to the organization (Adam, R.,

2004). They could as well face retaliation of being fired, listed for redundancy,

transferred to undesirable locations, physically abused, received death

threats, and even murdered(Adam, R., 2004). Legislations to protect whistle-

blowers are essential to encourage reporting of corporate misconduct (Adam,

R., 2004). The hotlines for whistle blowing have failed in most organizations

because you are made to sign the oath of secrecy when you join the

organization (Adam, R., 2004). This prohibits you to go out to the public when

there are ethical issues which need to be disclosed. The employees in

Zimbabwean organizations would be forced to follow the internal reporting

channels. In most cases the high ranking people will always try to put the

issues under the carpet (Adam, R., 2004). So the issue of hotlines in

Zimbabwe always fails to work as long as they are directed to the pertrators.

People in Zimbabwe do not use the hotlines greatly for blow the whistle

because of fear of retaliation, fear of losing their relationships at work and

outside work. Because the majority of cases are very low-profile and receive

little or no media attention and because whistleblowers who do report

significant misconduct are usually put in some form of danger or persecution,

the idea of seeking fame and glory may be less commonly believed(Adam, R.,

2004)

Wwhistleblower hotline as a powerful tool to fight against fraud.

In nearly all organisations fraud represents a significant threat to the

organizational coffers. Nearly half of all companies worldwide have been

victims of economic crime in the past two years, costing them an average of

US $1.7 million (pricewaterhouse, 2005)

Hotlines repeatedly have proven their ability to detect and deter illegal

behaviour in Zimbabwe. The police have even given the public the suggestion

box or even the hotlines specifically for reporting the frauds in the country.

What has remained very complex in Zimbabwe is the rewarding system of the

whistle blowers. In several cases the whistle blower ends up be liked to the

case which now promotes the whistle blowers to remain anonymous. Some

whistle blowers have ended up being locked up because they is no regulation

which promotes whistle blowers.

According to the ACFE's 2004 Report to the Nation on Occupational Fraud

and Abuse, fraud losses are reduced by nearly 60 percent when a hotline is

present. In fact, fraud is discovered via tips 40 percent of the time, making tips

the No. 1 method of fraud detection. Internal audit procedures, on the other

hand, were the second most common method of fraud detection, accounting

for 24 percent of discoveries.

Anonymous reporting

One in five American workers possess personal knowledge of workplace

fraud, according to a 2002 study sponsored by Ernst & Young (LLP) Lower

Layer Protocol , and 39 percent are more likely to report fraud if they could

remain anonymous. One possible explanation for the desire to remain

anonymous is the fear of retaliation

The Ernst & Young survey highlights employees' preference for telephone

hotlines as a whistle blowing tool. In fact, 57 percent of respondents stated

they would use a telephone hotline to report unethical conduct not conforming

to professional ethics. While only 20 percent would write an anonymous

letter, and just 16 percent would use an anonymous Web site.

In Zimbabwe internet has become a more used tool to report frauds. During

the past decade most organisations have been overpricing their goods and

services. A lot of whistle blowing through suggestion boxes, telephones and

internet was done. This has seen the wholesalers such as Muhammed Musa

being arrested by the policy for hording goods and not banking the cash

resources which were scarce. Telephones has been widely used in Zimbabwe

because of their essay access. The problem in Zimbabwe is that they are no

several options for reporting frauds to accommodate individual preferences.

Promotions of hotlines in Zimbabwe

Organizations in Zimbabwe needs to established an all day external

telephone hotline.

Organisations should consider outsourcing the services and may give whistle

blowers a greater sense of security and confidentiality so that he could divulge

all the unethical practices that will be happening with the community or the

organisation. Others operate their own internal hotline, which is answered by

one or more persons during regular or extended business hours. After the

business hours the lines goes to the voice mail which will not be ideal for

whistle blowing. According to 2005 research by The Network Inc., a workplace

reporting services firm, nearly 50 percent of all hotline calls are made at night

or on weekends, and these calls deserve the same treatment as contact

made during the day. Organizations in Zimbabwe that choose to operate an

internal hotline during business hours should adopt a hybrid approach and

outsource the after-hours component. It is mainly the whistle blowers should

be able to access your hotline at what ever time convenient to them. A

common example is at Telone Pvt (Ltd) where a member of the society sees a

cable for telephone line being stolen at night. The individual should

immediately for the security at Telone on the hotline for the security or the

hotline for the police.

Hotline best practice

IN Zimbabwe we need to adopt the recommendations of the American

Institute of certified Public Accountants (AICPA) which recommended that all

organisations should seriously consider establishing a whistleblower hotline

so as to realise the benefits of whistle blowing (www.aicpa.org) . So in

Zimbabwe organisations such as deltoids and touch, KPMG an auditing firms

should ensure that firms in Zimbabwe adopts the recommendations of AICPA(

www.aicpa.org).

Among the AICPA's suggestions are some practical ideas for implementing

and maintaining an effective whistleblower hotline program which are :

(a) Cultivate a vigorous whistleblower program.

Use dedicated, well-communicated feedback channels, such as the telephone

or Web, to provide a confidential way for employees, vendors, contractors,

and other stakeholders who should report issues from every organization

location. These stakeholders should speed up the progress reports and the

distribution of all cases to the responsible authorities within the hierarchy of

the organisation and lastly they need to audit the design and the effectiveness

of this internal control on a regular basis (www.aicpa.org).

(b) Creating a Whistle blowing Culture

Create a Policy

A policy about reporting illegal or unethical practices should include

(Alexander Hamilton Institute,2002)

Formal mechanisms for reporting violations, such as hotlines and mailboxes

Clear communications about the process of voicing concerns, such as a

specific chain of command, or the identification of a specific person in the

organization, such as an ombudsman or a human resources professional

(Alexander Hamilton Institute,2002)

Clear communications about bans on retaliation (Alexander Hamilton

Institute,2002)

In addition, a clear connection should exist between an organization's code of

ethics and performance measures. For example, in the performance review

process, employees can be held accountable not only for meeting their goals

and objectives but also for doing so in accordance with the stated values or

business standards of the company (Alexander Hamilton Institute,2002).

Get Endorsement from Top Management

Top management, starting with the CEO, should demonstrate a strong

commitment to encouraging whistle blowing through whistle blowing

(Alexander Hamilton Institute,2002). This message must be communicated by

line managers at all levels, who are trained continuously in creating an open-

door policy regarding employee complaints (Alexander Hamilton

Institute,2002).

Publicize the Organization's Commitment.

To create a culture of openness and honesty, it is important that employees

hear about the policy regularly (Alexander Hamilton Institute,2002). Top

management should make every effort to talk about the commitment to ethical

behavior in memos, newsletters, and speeches to company personnel

(Alexander Hamilton Institute,2002). Publicly acknowledging and rewarding

employees who pinpoint ethical issues is one way to send the message that

management is serious about addressing issues before they become

endemic(Alexander Hamilton Institute,2002).

Investigate and Follow Up

Managers should be required to investigate all allegations promptly and

thoroughly, and report the origins and the results of the investigation to a

higher authority (Alexander Hamilton Institute,2002). For example, at IBM, a

long-standing open-door policy requires that any complaint received must be

investigated within a certain number of hours (Alexander Hamilton

Institute,2002). Inaction is the best way to create cynicism about the

seriousness of an organization's ethics policy (Alexander Hamilton

Institute,2002).

Assess the Organization's Internal Whistle blowing System.

Find out employees' opinions about the organization's culture vis-à-vis its

commitment to ethics and values (Alexander Hamilton Institute,2002). For

example, Sears conducts an annual employee survey related to ethics

(Alexander Hamilton Institute,2002). Some questions are: Do you believe

unethical issues are tolerated here? Do you know how to report an ethical

issue?

(c)Staff the hotline with trained interviewers

Internal auditors will receive better information if a trained interviewer is

available to ask the right questions any time of day or night. In many cases,

individuals who call fraud hotlines are anxious maybe even somewhat

reluctant to offer details and may provide information in a disjointed manner.

The interviewer should have specialized training to help callers remain calm,

cover all aspects of the topic thoroughly. The interviewers should pay

attention to detail and ensure that they is a standard way of reporting (Asare T

,2004).

(d) Avoid the use of voice mail

In Zimbabwe whistle blowers are concerned of possible retaliation from the

managers or perpetrators so to leave their messages on the answering

machine will cost their life. A sample of people’s voice to be used for voice

recognition or security systems. or caller identification would be recognized,

or who might receive that message. If a message is left, it can be incomplete

or disorganized (Asare T, 2004)

Moreover, anonymous messages left on voice mail leave investigators

without the opportunity to gain additional information from the caller (Asare T,

2004.

(e) Nurture an ongoing dialogue

Assign a unique identification number or password to each anonymous caller

and direct individuals to call back within a predetermined time. The unique

number or password enables the person to call back to offer additional

information while maintaining anonymity. This gives investigators a chance to

review information and come up with additional questions to be asked

(Pricewaterhouse-Coopers, 2005). If the whistle blower calls back he will

provides additional information and this process is helpful as it will clarify grey

areas as the wheel unfolds (Pricewaterhouse-Coopers, 2005). Unfortunately,

according to 2005 research by The Network, roughly 70 percent of

anonymous callers never call back, so it's crucial that the initial report be as

detailed as possible.

(f) Protect confidentiality.

Ensure the numbers of the whistle blowers are kept private and confidential.

At any time these numbers should be kept private and not to reflect on the

telephone handsets or base stations of the called party. If its internet the e-

mail tracking system should not be used as this will violate the whistle

blower’s rights.

The power of a hotline lies in its ability to open the lines of communication.

The organisations need to create venues for interactive communication mostly

with the anonymous parties. It is crucial because many people receive unclear

e-mails, those that done quickly to be accurate or confusing and even

misleading the organisation.

Face to face conversations or live hotline interviews generate more detailed

information than one-way communication.

The ability to clarify information becomes critical for the auditors attempting to

investigate an allegation The assertion, claim, declaration, or statement of a

party to an action, setting out what he or she expects to prove

(Pricewaterhouse-Coopers, 2005).

If the allegations in a plaintiff's complaint are insufficient to establish that the

person's legal rights have been violated, the defendant can make a vague or

conflicting information received from an anonymous party can lead to

frustration for auditors. The hotline process should avoid this situation through

a two-pronged approach of getting detailed information from anonymous

parties and establishing a mechanism for ongoing dialogue (Pricewaterhouse-

Coopers, 2005).

.

Ideally, interviewers also should have supporting technology to assist in

tracking the information reported and pointing out any need for clarification.

To improve the quality of information received, everyone conducting

interviews should use an interview process that is standardized sufficiently to

cover key information consistently (Pricewaterhouse-Coopers, 2005).

ETHICS COMMUNICATION

There is no question that the tips received via a hotline can help auditors

detect fraud within an organization. But the presence of a hotline in

conjunction with a well-communicated, visible ethics campaign can also act as

a significant fraud deterrent.

Creating awareness of workplace ethics diminishes fraudulent activity,

according to the Ethics Resource Centre’s National Business Ethics business

ethics, the study and evaluation of decision making by businesses according

to moral concepts and judgments. Ethical questions range from practical,

narrowly defined issues, such as a company's obligation to be honest with its

customers, to broader social Survey (NBES NBES Narrow Beam Echo

Sounder ) of 2003. The NBES found a strong correlation between reporting

misconduct and ethics communication programs. The best campaigns discuss

the importance of ethical behaviours and use a positive tone to help

employees feel comfortable about reporting unethical behaviour. The purpose

and confidential nature of the hotline should always be mentioned. Hotline

communication also should discuss the types of behaviours that are expected,

such as honesty, versus those that are not condoned, such as accepting gifts

from vendors or awarding business to relatives. By providing real-world, easily

understood examples that illustrate expectations, the ethics program will act

as a deterrent to unethical or illegal behaviour. This will nurture an ethical

environment and show honest employees they can help the organization by

reporting harmful activities. An ethics program focused on appropriate

behaviour also shows employees they are accountable for their actions

(Bagley, Constance E,1991)

The most effective ethics programs plan in advance for both launch and

ongoing communication to sustain awareness of ethics and the hotline

(Bagley, Constance E,1991). This communication should be directed toward

suppliers as well as employees. This is imperative because, just as internal

employees report issues like expense report abuse, the employees of vendors

have been known to reveal fraud schemes such as deliberate over-billing or

requests for kickbacks (Bagley, Constance E,1991).

Beyond reaching the right people, doing so with frequency is critical for the

success of the hotline as a fraud detection tool(Bagley, Constance E,1991).

Like any operational process, the hotline will work only if people use it, and

people will not remember the hotline unless they hear about it more than once

a year. This point is best illustrated by the world of consumer advertising.

Advertising industry research indicates that consumers are exposed to 1,500

promotional messages daily (Bagley, Constance E,1991). Given the flood of

information consumer’s process, it is hardly surprising they do not recall what

they heard six months ago. Repeating hotline information will help keep it

fresh in the minds of the intended audience. Keeping messages simple is also

critical for success, because it can help employees take hold of the

information quickly. Another lesson to be learned from advertising is to

incorporate multiple media for sending messages about ethical behaviour.

Employee ethics training can also help strengthen hotline effectiveness. The

U.S. Federal Sentencing Guidelines the Federal Sentencing Guidelines are

rules that set out a uniform sentencing policy for convicted defendants in the

United States federal court system. The Guidelines are the product of the

United States Sentencing Commission and are part of an overall federal

sentencing reform, which were strengthened in 2004, now recommend that

organizations provide ethics training at all levels. Complying with this

voluntary guideline Medtalk a series of recommendations by a body of experts

in a particular discipline. See Cancer screening guidelines, Cardiac profile

guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion

guidelines. Ultimately will help internal auditing by generating hotline tips. It's

important to ensure that ethics training includes a section on coming forward

with information about unethical behaviour.

Dissemination procedures

Once a tip is received via an anonymous hotline, it must be handled discreetly

and in accordance with established procedures ( Association of Certified

Fraud Examiners, 2004). Report-dissemination procedures should protect

employees from retaliation, while safeguarding internal auditors from

accusations of improper handling of the investigation (Association of Certified

Fraud Examiners, 2004). To ensure tips reach the appropriate individuals

timely, procedures can be put in place to route reports automatically to

multiple recipients immediately upon receipt for prompt analysis and action

(Association of Certified Fraud Examiners, 2004).

Dual dissemination practices offer a helpful method for ensuring that

complaints don't get overlooked (Association of Certified Fraud Examiners,

2004). Dual dissemination simply involves having an appropriate official in

addition to the investigative authority receive copies of all hotline reports as a

secondary layer of dissemination (Association of Certified Fraud Examiners,

2004). For example, reports of financial irregularities automatically should be

sent to internal auditing, the audit committee, and potentially an external

investigator. Sending all reports to an ethics officer, as a secondary tier, is

another option. This ensures every allegation will receive the attention it

deserves through review by multiple individuals.

This safeguard not only helps internal auditing, but also protects the

organization from potential criticism that the reporting system is vulnerable to

interference from top executives. Dual dissemination can also act as a

protective device in cases where the accused party oversees the review of

fraud allegations. Given the potential for confusion and the risk associated

with errors, it is a better practice to have multiple individuals look at all reports

than try to reroute them on a case-by-case basis( dave.slovin@theiia.org).

For time-sensitive issues, organizations should consider accelerated

notification procedures.

To return in thought or discourse.

Fraud likely to occur again within the next 24 hours, appropriate officers

should be alerted immediately to catch the culprit during the act. The group

responsible for implementing the hotline must agree on a list of critical topics

that require immediate notification 24 hours a day, such as threats of violence.

Key parties should have a shared understanding of how such a situation will

be handled.

Getting results

Virtually all organizations are vulnerable to fraudulent activity, and the losses

associated with fraud can be devastating:

To overwhelm; confound; stun: was devastated by the rude remark. . The

good news is that there are many steps internal auditors can take to curb

these losses. By following best practices, with fraud prevention in mind as a

deliverable, every organization can implement a robust, confidential reporting

mechanism that yields effective results (slovin@theiia.org)

Undoubtedly, face to face conversations and other interactive methods of

collecting feedback are best( Hoffman, W. Michael, and Frederick, Robert E,

1995). However, some organizations may opt to broaden the whistleblower

program to include alternative reporting mechanisms such as Websites. When

doing so, it's important to prioritize

To arrange or deal with in order of importance (Hoffman, W. Michael, and

Frederick, Robert E, 1995).

One-way communication below interactive methods to ensure that the

organization receives feedback via its preferred methods ( Hoffman, W.

Michael, and Frederick, Robert E, 1995). In fact, Web forms are inherently

flawed. Because the medium is geared toward brief, instant communication

( Hoffman, W. Michael, and Frederick, Robert E, 1995).

Still, Web forms may offer some benefit if configured well.

To design, arrange, set up, or shape with a view to specific applications or

uses: correctly. When examining a Web option as a reporting mechanism,

make sure it such that the web reporting form has sufficient structure to

deliver specific results. A Web form must offer free-form areas for providing a

narrative, but also must collect specifics that will help the agency understand

and manage the response. For example, basic location information needs to

be collected, given the likelihood that the agency operates facilities in multiple

locations. One inherent weakness of Web reporting is the ability to "fool" the

system by entering gibberish into a field. If the field is critical for the

investigation, like location information, this can be devastating. Remember,

general information about a fraud scheme is useless if you have no idea

where or whom to investigate.

Another issue to consider is the possibility that the individual reporting a

concern will select the wrong category of concern. This categorization may

determine the report recipients.

Assigning an appropriate category can be more complex than it might seem.

For example, an employee who does not take the time to choose the right

category may submit a report about financial irregularities under "Employee

Relations." As a result, internal auditing and the audit committee may not

receive timely notice of an issue related to Sarbanes-Oxley compliance. This

not only wastes the time of those who receive the report, but also delays the

investigation.

References

(1) Adam, R., 2004. “Enron to Parmalat”, International Herald Tribune

( 2) Asare, T.,2004. “Business Ethics and Fraud”, ACCA Ghana Branch

Centenary Celebration Symposium

(3) Association of Certified Fraud Examiners, 2004. “Report to the Nation on

Occupational Fraud and Abuse”.

(4) Corporate Fraud policy, www.acfe.com

( 5)Organization for Economic Cooperation and Development (OECD), 1999,

“Principles of Corporate Governance”, (page 7).

(6)PricewaterhouseCoopers's (PwC) and Martin-Luther University, 2005.

“Global Economic Crime Survey”, Halle-Wittenberg, Germany.

(7)Pricewaterhouse-Coopers' Global Economic Crime Survey 2005.

(8)Alexander Hamilton Institute. Whistleblowing: A New Perspective on an Old

Issue. New Jersey, 2002.

(9)Bagley, Constance E. Managers and the Legal Environment: Strategies for

the 21st Century. St. Paul, Minn.: West Publishing Co.,1991.

(10) Behrman, Jack N. Essays on Ethics in Business and the Professions

Englewood Cliffs, N.J.,: Prentice-Hall, 1988.

(11) Hoffman, W. Michael, and Frederick, Robert E., Eds. Business Ethics:

Readings in Corporate Morality. New York: McGraw-Hill, 1995.

(12)Miceli, Marcia P., and Near, Janet P. Blowing The Whistle: The

Organizational and Legal Implications for Companies and Employees. New

York: Lexington Books, 1992.

(13) Miethe, Terance D. Whistleblowing at Work: Tough Choices in Exposing

Fraud, Waste and Abuse on the Job. Boulder, Colo.: Westview Press, 1999.

(14) Nader, Ralph, Petkas, Peter J., and Blackwell, Kate, eds. Whistle

Blowing: The Report of the Conference on Professional Responsibility. New

York: Grossman, 1972.

(15)Trevino, Linda K. and Nelson, Katherine A. Managing Business Ethics:

Straight Talk About How to Do It Right. New York: John Wiley and Sons,

1999.

(16)Vinten, Gerald, ed. Whistleblowing: Subversion or Corporate Citizenship?

New York: St. Martin's Press, 1994.

(17)Westin, Alan F., Kurtz, Henry I., and Robbins, Albert. Whistleblowing:

(18)Loyalty and Dissent in the Corporation. New York: McGraw-Hill, 1981.

(19)Lilanthi Ravishankar is a researcher for the Business and Organizational

Ethics Partnership( 2003)This report was prepared for the partnership.

(20) dave.slovin@theiia.org)