Safeguards against the business behaviour that has plunged corporate America into crisis are being neglected by UK firms.

Employers in this country are failing to provide whistleblowing channels for their staff to raise concerns about illegal or unethical practices, the Work Foundation (formerly The Industrial Society)

warned.

A survey of 281 companies showed almost half had no formal whistleblowing policies, three years after the introduction of the Public Interest Disclosure Act, which aimed to protect employees who raise concerns.

Only one in three private firms have a formal policy, compared with three out of four in the public or voluntary sectors.

Even among firms with whistleblowing policies, many said they were suspicious of staff who contacted an external regulator.

Policy specialist Theo Blackwell said: "As the recent spate of scandals to hit the United States reveal, employees can play a vital role in upholding good corporate governance, highlighting potential problems and maintaining organisational ethics.

"Transparent, wellrun organisations will have nothing to fear."