The key to a successful business is having engaged employees who genuinely care about the organisation, which means that a strong culture of internal reporting – or whistleblowing – is crucial. Not only is it mandatory for some businesses to have in place a compliant whistleblower policy, but implementing whistleblower protections just makes good business sense, even if it isn’t required.

The idea of a whistleblower policy is sometimes difficult to sell. The term whistleblowing can bring with it negative connotations and cause fear for employers and employees alike. After all, whistleblower reports mean having to investigate problems that have the potential to cause enormous disruption to the business, right?

Although this can be true for incidents of serious misconduct, ignoring or failing to address any dishonest or illegal activity will have far greater consequences for the business in the long term.

What is a whistleblower?

A whistleblower is someone with inside knowledge of a business who reports misconduct, dishonest or illegal activity that may have occurred within that business. Under the whistleblower protection legislation, an eligible whistleblower can be someone who is or was:

  • An officer or employee of the business
  • An individual or an employee of a person that supplies services or goods to the business (including volunteers)
  • An individual who is an associate of the business
  • A relative or dependent of any of the above, or a dependent of the spouse of any of the above
  • An individual prescribed by the Regulations as being an eligible whistleblower

An eligible whistleblower can remain anonymous and still qualify for protection.

What are whistleblower protections?

Whistleblower protections are the protections provided to whistleblowers to enable them to come forward and report misconduct without fear of retribution or personal detriment. The Corporation Act 2001 (Cth) (Corporations Act) and the Taxation Administration Act 1953 (Cth) both contain protections for whistleblowers.

What are the benefits of whistleblowing?

It’s ethical. Businesses have an ethical obligation to protect and support its employees. That includes protecting employees who raise alarms about possible misconduct witnessed within the business.

It protects the business. A strong culture of whistleblowing helps to identify all manner of potential threats. Most employees want to speak up about issues they see within the business, and employers should welcome this. This is far better than the alternative; a workplace where employees avoid reporting issues or concerns.

It minimises risks and costs. Misconduct that is ongoing and not addressed quickly will ultimately be more costly to resolve. Whether it’s acts of fraud or corruption, bullying, harassment or workplace safety that leave the business exposed to risk; whistleblowers that speak up will save the business money over the long term.

It prevents wrongdoing. Having a strong culture of internal reporting will deter employees from engaging in misconduct at work. When employees know co-workers are willing to report any wrongdoing, and management will consistently and effectively investigate all allegations, employees are less likely to breach policies, procedures, and the law.

How do I create a whistleblower policy?

A poor policy can cause just as much grief for a business as having no policy, so it’s important to address the following key points when developing a whistleblower policy:

  • The types of issues that should be reported
  • Employees’ duty to report any misconduct
  • The option to make a whistleblower report anonymously
  • Protection for whistleblowers from any form of retaliation

It’s also critical that for whistleblower policy to clearly outline how employees can submit reports, including the channels available to them, and the procedures for using those channels.

What is an external whistleblower contact?

Some businesses engage the services of an external provider to assist with whistleblower reporting. This helps to ensure important information is gathered for detailed disclosures, whistleblowers are protected, the business is supported throughout the process, and the reporting process is compliant.

Employees are a businesses biggest asset and having an engaged workforce of people who genuinely care about its success is key. If you’re looking for support to develop a whistleblower policy or are looking to engage an external provider to assist with whistleblower reporting, get in touch with our team now.

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