Encouraging Thai Law Reform - Reporting Fraud
- By Gregory Smyth
- Published 04/22/2009
- National, State, Local
- Unrated
Whistleblowing is a socially charged activity - the need to belong to a group, and the fear of rejection, often stops people from doing what they feel is morally right. The larger the indiscretion that has been witnessed, and the bigger the possible consequences for the wrongdoer, the more people are usually torn over whether to report the activity or not. However, whsitleblowing is an activity that goes beyond simply ensuring one criminal is caught. Understanding the full extent to which laws are being broken, by whom, and in what circumstances, is essential to Thailand's law reform process. Thailand's business law is an area where whistleblowing is particularly critical - we look at the dilemma.
Whistleblowing is not only about reporting illegal activities, but also about reporting unethical activities. If these actions are seen to hurt people unfairly, reporting them could bring about change in Thailand's laws. Many countries have recognized the need for whistleblower protection legislation, including Australia, where there is an Australian standard for protection programs for these people. The ASX Principles of Good Corporate Governance and Best Practice Recommendations encourage listed entities to help their whistleblowers, seeing that they can help stop floods of more harmful actions from occurring.
In Thailand, we have seen a large number of recent corporate collapses and losses. Each of these contributes to rising unemployment in the country, and a less stable business environment that weakens the country's def
enses against the economic crisis. This is why Thai law firms and Thailand corporate legal services are encouraging all employees to become involved with the 'policing' of the law. Preventative actions that may result in one person's arrest for fraud have the potential to save jobs for hundreds.
Of course, it is difficult to know when to start and stop with whistleblowing. If an employee takes two pens home instead of one, perhaps several times a week, should he be reported? In many offices, even senior management do this, making employees feel that reporting it is useless. If financial results are falsified slightly in order to get a better performance analysis, should this be reported? Sexual harassment is often viewed as harmless fun by everyone except the victim - when does it need to be reported to make it stop? Thai law firms are encouraging the reporting of even seemingly minor offenses, in the interests of stability and dependability in Thailand's business laws and corporate climate.
Hotlines are one of the major ways that Thai lawyers are recommending that a culture of whistleblowing can be created. The anonymity of a hotline is the only way to ensure that complainants don't face sanctions rather than praise - and therefore one of the only ways to ensure that unethical and illegal practices come to light. The setup of new hotlines is expected to help curb crimes under Thai law like:
1.Fraud
2.Kickbacks
3.Corruption
4.Theft of stock
5.Manipulation of financial reports
6.Sexual harassment
7.Industrial relations issues like bullying in the workplace, and expectations of unsafe work practices.
Whistleblowing is not only about reporting illegal activities, but also about reporting unethical activities. If these actions are seen to hurt people unfairly, reporting them could bring about change in Thailand's laws. Many countries have recognized the need for whistleblower protection legislation, including Australia, where there is an Australian standard for protection programs for these people. The ASX Principles of Good Corporate Governance and Best Practice Recommendations encourage listed entities to help their whistleblowers, seeing that they can help stop floods of more harmful actions from occurring.
In Thailand, we have seen a large number of recent corporate collapses and losses. Each of these contributes to rising unemployment in the country, and a less stable business environment that weakens the country's def
Of course, it is difficult to know when to start and stop with whistleblowing. If an employee takes two pens home instead of one, perhaps several times a week, should he be reported? In many offices, even senior management do this, making employees feel that reporting it is useless. If financial results are falsified slightly in order to get a better performance analysis, should this be reported? Sexual harassment is often viewed as harmless fun by everyone except the victim - when does it need to be reported to make it stop? Thai law firms are encouraging the reporting of even seemingly minor offenses, in the interests of stability and dependability in Thailand's business laws and corporate climate.
Hotlines are one of the major ways that Thai lawyers are recommending that a culture of whistleblowing can be created. The anonymity of a hotline is the only way to ensure that complainants don't face sanctions rather than praise - and therefore one of the only ways to ensure that unethical and illegal practices come to light. The setup of new hotlines is expected to help curb crimes under Thai law like:
1.Fraud
2.Kickbacks
3.Corruption
4.Theft of stock
5.Manipulation of financial reports
6.Sexual harassment
7.Industrial relations issues like bullying in the workplace, and expectations of unsafe work practices.
Gregory Smyth
BSA Law has focused on providing reliable thai Law consulting and services to the business community in Thailand for nearly 30 years.Click to find out more about Law firm in Thailand.
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