Internal Reporting System (IRS): A Key Tool for Corporate Integrity

Internal Reporting System (IRS) - Assuring Ethical Business

Why the IRS matters in Spain

Corporate integrity is no longer optional—it’s critical for survival. In Spain, non-compliance with EU Directive 2019/1937 (Law 2/2023) risks heavy fines, shutdowns, or reputational damage.

The Internal Reporting System (IRS), a mandated whistleblowing channel, enables secure reporting of misconduct, transforming compliance into a tool for transparency and ethical growth. At Sommet Global, we turn IRS requirements into strategic advantages, safeguarding your business while fostering trust and accountability. When employees report unethical conduct, they shield companies from massive fines and reputational harm. Under EU Directive 2019/1937 (Spanish Law 2/2023), organizations with 50+ employees must implement an IRS—a secure whistleblowing channel. Smaller companies can (and should) adopt it voluntarily to foster trust and accountability.

How Sommet Global transforms compliance

We don’t just implement IRS—we tailor it to your company’s DNA, turning legal requirements into tools for growth. Our solutions ensure:

• Regulatory alignment

• Cultural transparency

• Continuous improvement

What is the Internal Reporting System?

An IRS is a confidential platform enabling employees and third parties to report compliance breaches, legal violations, or unethical acts. It’s not just a legal checkbox—it’s a proactive shield for your business.

Key features of an effective IRS

• Universal access: Available to all employees and stakeholders.

• 24/7 availability: Reports can be submitted anytime.

• Guaranteed confidentiality: Protects whistleblower identities.

• Anti-retaliation safeguards: Legal protection for good-faith reports.

• Clear deadlines: Timely acknowledgment and resolution of cases.

• Secure audit trail: All reports are securely logged and tracked.

• Reporting Flexibility

Employees can submit concerns via:

✔️ Written channels (email, online forms)

✔️ Phone hotlines

✔️ In-person meetings

The cost of non-compliance

Since the 2015 reform of the Spanish Criminal Code, companies may have their criminal liability reduced or even waived if they can demonstrate that they have implemented effective oversight and control measures.

The penalties can be severe

• Heavy financial fines

• Closure of premises, operational shutdowns

• Disqualification from certain activities

• Company dissolution

Conclusion: Elevate compliance, empower integrity with Sommet Global

In an era where corporate accountability is non-negotiable, the Internal Reporting System (IRS) stands as both a shield and a catalyst for ethical growth. At Sommet Global, we go beyond mere compliance—we embed IRS into the core of your operations, transforming it into a dynamic tool that safeguards your business while fostering a culture of trust and responsibility.

Our approach combines advanced technology, legal expertise, and cultural sensitivity to create IRS channels that are secure, user-friendly, and legally robust. We ensure every report is handled with urgency and confidentiality, turning potential vulnerabilities into opportunities for growth.

Compliance is not a burden—it’s a strategic advantage. With Sommet Global, your IRS becomes a beacon of integrity, positioning your business as a leader in ethical practices and future-proofing it against evolving regulations.