Study on the need for horizontal or further sectorial action at EU level to strengthen the protection of whistleblowers - Final Report Volume I - Principal Report 27 November 2017 Submitted to: DG JUSTICE, European Commission ICF makes big things possible ICF is a global consulting and technology services provider with more than 5,000 professionals focused on making big things possible for our clients. We are policy specialists, social scientists, business analysts, technologists, researchers, digital strategists and creatives. Since 1969 government and commercial clients have worked with ICF to overcome their toughest challenges on issues that matter profoundly to their success. Our five core service areas are described below. Engage with us at icf.com. Study on the need for horizontal or further sectorial action at EU level to strengthen the protection of whistleblowers - Final Report - Principal Report Study on the need for horizontal or further sectorial action at EU level to strengthen the protection of whistleblowers - Final Report Volume I - Principal Report A report submitted by ICF in association with Milieu, Blue Print for Free Speech Date: 27 November 2017 Job Number 30301375 ICF Consulting Services Limited Watling House 33 Cannon Street London EC4M 5SB T +44 (0)20 3096 4800 F +44 (0)20 3368 6960 www.icf.com i Study on the need for horizontal or further sectorial action at EU level to strengthen the protection of whistleblowers - Final Report - Principal Report Document Control Document Title Study on the need for horizontal or further sectorial action at EU level to strengthen the protection of whistleblowers - Final Report Job No. 30301375 Prepared by Emanuela Carta, James Kearney, Inès Maillart, Andrew Jarvis Checked by Andrew Jarvis Date 27 November 2017 This report is the copyright of DG JUSTICE, European Commission and has been prepared by ICF Consulting Services Ltd under contract to DG JUSTICE, European Commission. The contents of this report may not be reproduced in whole or in part, nor passed to any other organisation or person without the specific prior written permission of DG JUSTICE, European Commission. ICF has used reasonable skill and care in checking the accuracy and completeness of information supplied by the client or third parties in the course of this project under which the report was produced. ICF is however unable to warrant either the accuracy or completeness of such information supplied by the client or third parties, nor that it is fit for any purpose. ICF does not accept responsibility for any legal, commercial or other consequences that may arise directly or indirectly as a result of the use by ICF of inaccurate or incomplete information supplied by the client or third parties in the course of this project or its inclusion in this project or its inclusion in this report. i Study on the need for horizontal or further sectorial action at EU level to strengthen the protection of whistleblowers - Final Report - Principal Report Contents Executive summary ................................................................................................................. i 1 Introduction ............................................................................................................. 1 2 Problem definition ................................................................................................... 3 2.1 Introduction ............................................................................................................. 3 2.2 What is whistleblowing and its role in exposing wrongdoing.................................... 5 2.3 Problems and their causes ....................................................................................24 2.4 Types and scale of wrongdoing that whistleblowing can help expose and address ..................................................................................................................42 2.5 Summary ...............................................................................................................66 3 The case for EU action ..........................................................................................73 3.1 Introduction ............................................................................................................73 3.2 The current legal situation in Europe ......................................................................73 3.3 The case for action ................................................................................................78 4 Objectives ..............................................................................................................84 4.1 Introduction ............................................................................................................84 4.2 Objectives for EU action on whistleblower support and protection .........................84 5 Options ..................................................................................................................87 5.1 Baseline Scenario ..................................................................................................87 5.2 Intervention logic ....................................................................................................91 5.3 Option 1 - Non-legislative approach to promoting horizontal general protection in all areas .................................................................................................................98 5.4 Option 2 – Horizontal general protection in all areas ..............................................99 5.5 Option 3 – Protecting the financial interests of the EU ......................................... 100 5.6 Option 4 – Enhancing the good functioning of the internal market ....................... 101 6 Assessment of impacts ........................................................................................ 102 6.1 Introduction .......................................................................................................... 102 6.2 Impact screening ................................................................................................. 104 6.3 Option summary .................................................................................................. 106 6.4 Economic impacts ................................................................................................ 107 6.5 Social impacts...................................................................................................... 129 6.6 Environment impacts ........................................................................................... 141 6.7 Impacts on SMEs ................................................................................................. 141 7 Comparative assessment of the options .............................................................. 143 7.1 Impact summary .................................................................................................. 143 7.2 Effectiveness ....................................................................................................... 144 7.3 Efficiency ............................................................................................................. 146 7.4 Coherence ........................................................................................................... 146 7.5 Uncertainty .......................................................................................................... 147 7.6 Summary conclusions .......................................................................................... 148 ii Study on the need for horizontal or further sectorial action at EU level to strengthen the protection of whistleblowers - Final Report - Principal Report Executive summary This is the final report of a study on the need for action at EU level to strengthen the protection of whistleblowers in the EU. It has been prepared for the Directorate General for Justice, Consumers and Gender Equality of the European Commission by ICF working with the support of Milieu Ltd and Blueprint for Free Speech. The Council of Europe defined a whistleblower as a person who reports or discloses information on a threat or harm to the public interest in the context of their work-based relationship, whether it be in the public or private sector. The Commission has highlighted the role of whistleblowers in promoting, amongst others, the fight against corruption, good governance and freedom of expression. It has been shown in many countries and contexts that whistleblowing can be a powerful mechanism for exposing wrongdoing in the workplace which can harm the public interest. The study has found that potential for whistleblowing to support the public interest is not fully realised because many workers who see or suspect wrongdoing do not report it. Contributory factors include: fear or retaliation; belief that reporting would be futile; culture of employer loyalty and hostility towards whistleblowers; lack of reporting mechanisms and channels and/or lack of knowledge of procedures and reporting channels; lack of confidentiality. The long term consequence of this under-reporting is that a wide variety of economic, social and environmental issues, from corruption and fraud to practices that threaten public health and safety, persist at higher levels than would otherwise be the case. The scale of these problems and their consequences are substantial. Lives have been lost in incidents in which the underlying problem that triggered the event