Recent lapses in corporate ethics (think Banking and Aged Care Royal Commissions for examples) have again highlighted the importance of how to know if things are amiss in your organisation. A major tool available to organisations is that of whistle-blowing – which has typically been the choice of last resort for many people.
Consequently, there is now a lot of attention on whistle-blowing as whistle-blowers can protect us against fraud and corruptions. Typically, whistle-blowing was seen as an ethical issue or response to problems, and can be a very hard road to take. It is acknowledged by practitioners and academics as such, and until recently their advice ranged from don’t do it because of the high personal cost, to it is imperative to report. There are risks with whistle-blowing, but these can be mitigated when the leadership of the organisation create and model a culture where it is safe to ask the hard questions.
However, because self-regulation in the space has failed, government regulators are now intruding mandatory whistle-blower polices. In Australia, the Corporations Act has been amended to strengthen the whistle-blower provisions for all public (and some other) companies. The Australian company regulator ASIC has produces an excellent guide to these provisions (Regulatory Guide 270) which are free and very useful (click here to download). These are easy to follow and guides organisations through the process of developing whistle-blower policies, implementing and maintaining them.
This guide is also of equal importance for organisations not currently required to have such policies, but who may choose to because it is the right thing to do. If you have not already done so, now is the time to check that your company has whistle-blower policies and to introduce them if they are not present.
Dr Warrick Long, Senior Lecturer and Leadership Postgraduate Studies Coordinator.