Because it provides the following benefits:
- A simple, low cost but strong practical deterrent to workplace dishonesty, inappropriate behaviour and unethical business practices.
- Monitors and manages the reputational risk of directors and their organisations.
- Protects an organisation from negative publicity and adverse disclosure to the media.
- Demonstrates an organisation’s commitment of promoting a culture of honesty and integrity.
- Is a tangible corporate governance initiative that all stakeholders can embrace to promote openness and transparency throughout an organisation.
- Effectively highlights risk areas and weak internal control environments.
- Supports an organisation’s risk management strategy and profile as well as that of the internal audit function and audit committee.
- Useful as a barometer to measure unethical behaviour.
- Provides stakeholders with an independent mechanism to report anonymously, without fear of recrimination.
- Anonymously exposes undetected or unreported fraud, crime, non-compliance issues and collusion.
- Embraces a recommendation of the King II Report on Corporate Governance to “make available safe easily accessible reporting channels to stakeholders”.
- Enables an organisation to comply substantially with the provisions of the Protected Disclosures Act No 26 of 2000., and
- Because it makes good business sense!