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Small firms falling short on whistleblowing

Small businesses may be more likely to need an employment law solicitor service, as it emerges that large organisations are better at having confidential reporting procedures in place.
Too many small companies risk "financial and reputational ruin" because they lack whistleblowing procedures, according to David Lewis, professor of employment law at Middlesex University.
"Bribery, fraud and malpractice can happen in any business at any level, but organisations in the private and public sectors can put procedures in place that allow them to receive information about possible problems before they escalate," he said.
He also noted that confidential reporting procedures remove the need for workers to make external disclosures that damage the company's reputation.
This situation is likely to become "even more problematic" when the Bribery Act comes into force later this year, Professor Lewis added.
Commenting earlier this year, justice secretary Ken Clarke said that "no honest business" will have to spend lots on complying with the new bribery laws.
However, the findings of Professor Lewis suggest small firms need to step up their compliance efforts.
Posted by Alex McLean
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