Beefed-up whistleblower laws are now in play and this expert has some tips for those involved

There are greater protections for people who report misconduct about companies and company officers. So what do business owners need to know and what do they do with this new-found information?

As a corporate investigator working with companies to identify fraud and misconduct, the statistics around company misconduct are quite alarming.

You may not know that across most sectors and industries, it is likely that around ten percent of your workforce is engaging in some form of misconduct with at least one percent knowingly engaging in this behaviour.

Yes! The numbers are concerning for business - both from a reputational and financial perspective.

Would it surprise you to know that it is highly likely that someone in your ranks knows that this behaviour is happening (yes, a potential whistleblower) who may be concerned with reporting the misconduct due to fear of reprisal?

This scenario cannot happen any longer.

Adam Fairhurst of BDO Brisbane

While misconduct will no doubt continue, Australia has somewhat caught up with community expectations, with the recent amendments to the Corporations Act providing expanded protections to the whistleblower from any detriment or reprisal as well as anonymity.

What does this legislation mean for business owners?

These amendments require public companies, large proprietary companies, and proprietary companies that are trustees of registerable superannuation entities must have a whistleblower policy from 1 January 2020.

Fortunately, ASIC has provided substantial guidance to assist businesses to meet the obligations to have a whistleblower policy.

This includes advice on what is an eligible disclosure, who is an eligible to make a disclosure, who is an eligible recipient and how a whistleblower can make the report.

The ASIC guide also recommends companies incorporate staff awareness training around whistleblowing and suggests an independent whistleblower hotline to provide confidence that the whistleblower’s voice can be heard freely with their identity remaining anonymous if they choose.

The amended legislation is good news for business. Not only does it provide protections for people to come forward and report wrong-doing in the workplace.

I expect it will positively influence behaviours and corporate culture by encouraging transparency, more disclosures and, indirectly, will act as a deterrent to people who might be thinking of doing the wrong thing; thus creating a more fair and accountable workplace.

Information disclosed by a whistleblower could detrimentally affect your business.

The amendments to the Corporations Act outline that it is a matter for the company to determine how to manage the information disclosed.

Essentially, you could do nothing, although this would be too risky and not an option in my opinion. If the information meets the criteria of an eligible disclosure under the amended legislation, an investigation would be the most likely outcome; whether internally or via an independent external investigation company.

Of course, I would suggest you go to a reputable investigator but that is totally up to you!

Adam Fairhurst is an Assoc. Director in Forensic Services and Investigations at accounting and professional services firm, BDO in Brisbane.