Australia’s Corporate Sector Urged To Strengthen Whistleblower Protections

Key Takeaways

• Significant Variations in Programs: A new benchmarking review identified major inconsistencies in whistleblower protections among 134 Australian companies across 18 industries.
• Missed Opportunities to Support Speak-Up Culture: Over one third lacked a dedicated reporting webpage, one quarter failed to provide staff training, and more than half did not seek employee feedback.
• Governance and Risk Blind Spots: Strong whistleblower practices remain essential for uncovering misconduct that may otherwise stay hidden and put customers, shareholders, and communities at risk.
• Regulator to Increase Focus: The Australian Securities and Investments Commission will continue monitoring companies with less mature or non-compliant programs and encourage benchmarking against its new findings.

Deep Dive

Australia’s corporate watchdog is urging companies to do more to protect employees who raise the alarm on misconduct, after uncovering major inconsistencies in the way whistleblower programs are being implemented across the country. A new benchmarking review assessed 134 entities across 18 industries. This review builds on several years of work focused on strengthening Australian whistleblower protections, including:

• The publication of Regulatory Guide 270 Whistleblower Policies in 2019
• A 2021 letter to CEOs urging reviews of whistleblower policies for legal compliance
• Report 758 in 2023 on good practices for handling whistleblower disclosures

The review found that many organizations are still failing to provide basic support mechanisms for workers who speak up, and Commissioner Alan Kirkland emphasized that whistleblowers are often the first to identify behavior that harms customers, shareholders, and the broader community.

“Without effective policies and programs to encourage whistleblowers to come forward, misconduct may otherwise go unreported and undetected,” he said.

But the report suggests many employees still lack a safe channel to raise concerns.

Gaps in Whistleblower Programs

The review highlighted several concerning shortcomings:

• More than one third of companies surveyed did not offer a dedicated whistleblower webpage for reporting concerns.
• One quarter were not providing regular staff training on whistleblower programs.
• Over half had not collected employee feedback on their whistleblower processes in the past year.

The findings also showed that program maturity varies by sector and company size. Larger organizations, along with those in the mining industry, were more likely to report higher disclosure volumes and stronger protections for whistleblowers. However, some smaller firms demonstrated leading practices, showing that size is no excuse for weak programs.

Building a Stronger Speak-Up Culture

Kirkland said there are clear steps companies can take now, such as making reporting options easier to find, ensuring anonymous communication is possible, and actively encouraging a culture where employees feel safe to speak up.

“Strong, appropriate and effective whistleblower practices go to the core of good corporate governance,” he said. Such programs, he added, are essential for helping directors oversee operations and ensure compliance with the law.

The regulator plans to continue monitoring corporate whistleblower efforts and will engage directly with entities that have non-compliant or less mature systems in place.

As a reminder, companies are legally required to provide specific protections for whistleblowers and maintain strict confidentiality around disclosures. Whistleblower policies must clearly explain how organizations will uphold these obligations based on their own structures and risk profiles.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.