Act XXV of 2023 – the Whistleblower Protection Act – requires all companies with at least 50 employees to establish an internal whistleblowing system.
EthiCom, developed by the experts of RSM Hungary ESG Solution, is a comprehensive digital whistleblowing platform that fully supports the management of misconduct reports – from ensuring regulatory compliance to guaranteeing data protection and anonymity, while strengthening corporate integrity and trust.
What is the Whistleblower Protection Act and who must comply?
The Whistleblower Protection Act aims to provide employees and other stakeholders with a secure channel to report misconduct, irregularities, or legal violations within the company. The law is based on Directive (EU) 2019/1937 (the Whistleblower Directive) and entered into force gradually from 24 July 2023.
Companies required to comply:
- Businesses with more than 50 employees
- Credit institutions, insurance companies, accountants, lawyers, fiduciary trustees, etc. – regardless of headcount
EthiCom – A secure and anonymous Whistleblowing System
The cloud-based EthiCom system fully complies with the requirements set out in the Whistleblower Protection Act. It enables companies to manage reports simply and transparently – even anonymously, through token-based identification – while ensuring that the whistleblower’s identity remains protected.
Key features of the system:
- Secure reporting (anonymous or identified)
- Regulatory compliance with automatically updated rules
- Communication, status tracking, and the ability to attach evidence (photos, audio, video)
- Automatic notifications to both whistleblower and case handler
- GDPR compliance
- Optional corporate branding customization
Scope of the EthiCom Whistleblowing System
The basic service includes:
- Provision of the cloud-based EthiCom software
- Operation and hosting of the EthiCom system
- Monitoring legislative changes related to whistleblowing and implementing necessary updates within EthiCom
- One-time online training for relevant employees on using EthiCom
- Provision of a basic whistleblowing policy in line with the Whistleblower Protection Act
Optional customization:
- Corporate logo, color scheme, and naming tailored to company branding
Why Choose RSM’s EthiCom?
- ESG relevance: Strengthens corporate integrity, trust, and reputation
- Competitive advantage: Demonstrates transparent and ethical operations
- Risk mitigation: Addresses risks and supports internal development with a modern tool
- Predictable pricing: Fixed annual fee regardless of the number of users and whistleblowers
The role of a Whistleblowing System in ESG strategy
A whistleblowing system is not only a legal obligation but also a cornerstone of ESG (Environmental, Social, Governance) implementation. Transparent operations, adherence to ethical standards, and protection of employees represent key Social (S) and Governance (G) factors increasingly expected by investors, partners, and employees.
Implementing EthiCom contributes to stronger ESG performance, improves internal controls, and reduces reputational risks in the long term. A well-functioning whistleblowing mechanism is therefore not just a compliance tool, but also an ESG investment that provides competitive advantage.
Frequently Asked Questions (FAQ)
What is the Whistleblower Protection Act?
Act XXV of 2023, which regulates the handling of public interest disclosures and misconduct reports, makes it mandatory for certain businesses to operate whistleblowing systems.
Which companies are required to implement a whistleblowing system?
All companies with at least 50 employees, as well as entities in financial, legal, and other highly regulated sectors.
least 250 employees, as well as – regardless of the number of employees – for companies operating in the following sectors: financial, legal, accounting, trust management, real estate, registered seat provider services, antique and art trading, businesses accepting large cash payments, entities subject to the AML Act, and companies engaged in oil, gas, air transport, or vessel operations.
As of 17 December 2023, the regulation extended the obligation to implement a whistleblowing system to all employers with at least 50 employees.
What are the benefits of using EthiCom?
Secure handling of complaints and misconduct, ensuring legal compliance, protecting reputation, and supporting ESG objectives.
How much does EthiCom cost?
Available at a predictable annual fee, regardless of the number of users or whistleblowers.
Our ESG advisors will assist you in implementing the whistleblowing system and integrating it into your ESG framework.
