Components of Whistle Blowing Policy Essay

Whistle blowing constitution components can vary from company to company. There argon several essential components that must be include in any blab blowing policy to maximize the effectiveness of the policy. There be six elemental components that need to be addressed receive the complaint acknowledge the complaint investigate the complaint solution the complaint report the resolution of the complaint and retain necessary documentation (Thornton, 2006).The benefit of having a whistle blowing policy is to protect against corporate fraud. The Sarbanes-Oxley Act of 2002 postulates that companys establish procedures for receipt and treatment of complaints and require an anonymous venue. According to the Association of Certified Fraud Examiners 2006 report, the most expensive forms of fraud are non detected by internal controls because perpetrators tend to work in areas not tightly controlled or are in control of the areas themselves (Thornton, 2006).Therefore, the most effective fo rm of fraud detection is a tip, most practically coming from a whistleblower hotline. The danger of a whistle blowing policy is the backlash the blower or the company may endure. An entire organization can still be held criminally liable for employee iniquitous actions despite even the best efforts to prevent wrongdoing (Schwartz, 2006).An employee may endure harassment, embarrassment, or job spill if they are found out to be the whistleblower despite the validity of the accusations. In all, whistle blowing policies are required by law and essential for deterring corporate crime. Although all six components are needed for a complete policy, the twain essential elements are for success are anonymity and corporate support and resolution. Without these two major components, whistle blowing policies are simply policies and not crime deterrents.