The inquiry into the Grenfell disaster has published its Phase 2 report into the origins of the fire. The inquiry found failings at multiple levels, including an inadequate regulatory regime, misleading marketing by manufacturers and lack of rigour by enforcement and certification bodies. One theme of the report is that, in several cases, concerns were raised by staff within the relevant organisations, but not acted upon properly.
Although the report's focus was (rightly) on improving building safety, it also highlights the importance of organisational culture. It's rare that a corporate scandal comes as a complete surprise to the staff - failures are often known about internally long before they come into the public domain. As with the Post Office scandal, it's hard to avoid the conclusion that disaster might have been avoided if concerns had been acted on earlier. But in order for this to happen, an organisation needs to have a culture which prioritises ethical practice and compliance, and which encourages staff to speak up.
A key element of this having appropriate whistleblowing mechanisms in place. A written policy is a start but it's far from being enough: staff need to feel confident that they won't be penalised for raising concerns and that concerns they raise will be investigated thoroughly and with an open mind. A written policy can help to set this out formally, but it also needs visible and vocal support from the Board and senior management team. One way to convey this is to provide training on the policy, so that staff know how to go about raising concerns. Another is for the Board to monitor the effectiveness of the policy and report regularly on its operation. Finally, any retaliation against staff who raise concerns needs to be treated extremely seriously; if this is seen to be tolerated, staff won't report concerns.
Having these mechanisms in place isn't just a question of business ethics, but also effective risk-management. If unlawful conduct, fraud or health and safety failures can be detected early and addressed swiftly, they are much less likely to create existential risk for the business. Employers may worry that encouraging whistleblowing will increase the risk of employment claims, or encourage frivolous complaints, but these risks pale into insignificance compared with a major corporate scandal. Organisations which invest time and resources into strengthening these mechanisms and empowering staff to raise concerns are likely to reap dividends
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