Whistleblower channels: characteristics and minimum requirements for proper functioning and recognition in Nicaragua

Whistleblower channels are a mechanism to identify conflicts that may be occurring between parties related to the company (employees, customers, and suppliers) about illegal activities or behaviors that without proper treatment may become infractions.

There are different types of reporting channels, so the company must implement the system that best suits its operations. These may be e-mails, phone lines or any other means that allows the interested party to report verbally or in writing.

The minimum requirements for a proper functioning and recognition between the parties are:

    1. To present it before the parties guaranteeing its recognition and understanding of its use.
    2. Guarantee confidentiality and anonymity to generate trust.
    3. Designate a person or team responsible for dealing with complaint.
    4. Acknowledge receipt of the complaint to the complainant in a short period of time.
    5. Transfer the complaint to the committee in charge of managing the corresponding investigation.
    6. Provide a response to the complainant once the investigation of the case has been concluded.
    7. Keep a record of reported cases.
    8. Mitigate risks identified in the reported cases.

The use of the whistle-blowing channel must be described in the company’s compliance plan so that it can be an efficient tool for dealing with cases of unlawful conduct between related parties. A good use of the whistleblower channel helps the company to prevent and, if necessary, correctly manage events that may cause major risks and that, when identified, can be mitigated to prevent them in the future.

We recommend periodically reviewing internal processes involving whistleblowing tools to ensure adequate mechanisms between related parties.