Whistleblower Protection in EU Law: Bridging Transparency, Accountability, and Corporate Social Responsibility

Introduction

Whistleblowers play a key role in democratic societies, playing an irreplaceable role in realizing fundamental principles such as the rights to freedom of expression and access to information, which are guaranteed by the constitution. Their activities contribute to maintaining the balance between government, corporations and society, enabling transparency and accountability in public and private institutions. Unfortunately, whistleblowers often face serious negative consequences from those whose actions they may expose or harm, including social ostracism, job loss, and even legal reprisal. These negative consequences, in turn, may inhibit the development of whistleblowing. It is therefore necessary to provide effective protection mechanisms for people who decide to report irregularities. The introduction of appropriate legal regulations and support for institutions that protect whistleblowers against repression is key to creating a favorable environment for honest and open sharing of information about potential irregularities.

Whistleblowing initially gained importance mainly in countries using the common law system, such as the United States and Great Britain. The first whistleblower protection regulations and standards were developed in these jurisdictions. However, it can now be observed that the phenomenon of whistleblowing is becoming more and more recognized and regulated in many European countries. The extension of the scope of whistleblowing regulations in European countries results from the growing awareness of the role played by whistleblowers in promoting transparency, ethics and honesty in the functioning of public institutions and private enterprises.

Directive (EU) 2019/1937 (L 305/17), is a key initiative of the European Union aimed at creating a uniform and effective framework system of protection for persons reporting irregularities in various business sectors and public institutions. Adopted in November 2019, this directive is an important step towards harmonizing the legal landscape regarding whistleblower rights and guarantees in the Member States of the European Union. The main objective of Directive 2019/1937 is to encourage Member States to introduce or update their national legislation in order to create coherent, comprehensive and effective protection for whistleblowers. The directive requires Member States to provide effective means of protection against reprisal for those who report irregularities, and establishes standards on reporting procedures, responses to reports and access to information regarding whistle-blowing proceedings. These regulations often cover not only the sphere of labor law, but also issues related to the protection of human rights, freedom of expression and even public security. Procedures are also being introduced to enable whistleblowers to report irregularities in a safe and confidential manner, which is important for the effectiveness of the whistleblowing process.

The purpose of this article is to focus on several key issues related to the EU Directive (EU) 2019/1937, which establishes standards for whistleblower protection. We present an in-depth analysis of the provisions of the directive, with particular emphasis on protection against retaliation and promotion of internal reporting.

We also analyze challenges related to the implementation of whistleblower protection in EU Member States and identify emerging problems. We look at the role of whistleblowers in the protection of human rights, presenting case studies that illustrate their impact. We emphasize the importance of robust whistleblower protection as a means of increasing transparency, accountability and ethical conduct. As part of a comparative analysis, we also compare whistleblower protection with the concepts of CSR (Corporate Social Responsibility) and the ethics of corporate conduct, showing the symbiotic relationship between these aspects.

The article uses various research methods. Including a review of existing legal provisions, standards, and scientific literature on whistleblower protection, both at national and European level, and a detailed analysis of Directive (EU) 2019/1937 itself and other relevant legal documents related to whistleblower protection in the European Union. The work also assessed whistleblower protection with the concepts of CSR (Corporate Social Responsibility) and corporate ethics to demonstrate the relationship between these aspects.