Tips for Implementing Good Whistleblower Practices

Introduction 

The Australian Securities and Investments Commission (ASIC) recently released a report on good practices for handling whistleblower disclosures, providing insights for companies and superannuation trustees looking to design effective whistleblower programs. The report summarises good practices identified through ASIC’s targeted review of a selection of whistleblower programs, and focused on seven sample companies’ arrangements, including Australian and New Zealand Banking Group Ltd, AustralianSuper Pty Ltd, BHP Group Ltd, Commonwealth Bank of Australia, Netwealth Group Ltd, Treasury Wines Estates Ltd and Woolworths Group Ltd. The report offers practical guidance on how to establish a strong foundation for a whistleblower program, foster a whistleblower culture, provide appropriate resources and training, monitor, review and improve the program, use information from disclosures, embed executive accountability, and ensure effective director oversight. 

Establishing a Strong Foundation for the Program 

To establish a strong foundation for a whistleblower program, companies should ensure that they have defined roles, responsibilities, operational documents and charters in place. This includes clear operational procedures or guidelines and information technology resources and organisational measures to secure personal information from the program. It is also important to ensure that the program is equipped to manage disclosures by having robust channels for reporting and investigating disclosures, and by providing clear guidance on how to manage and respond to disclosures. 

Practical Tips: 

• Ensure that roles and responsibilities are clearly defined and documented, including operational procedures or guidelines. 

• Provide robust channels for reporting and investigating disclosures. 

• Provide clear guidance on how to manage and respond to disclosures. 

Fostering a Whistleblower Culture 

Creating a culture that supports whistleblowers is essential to ensure that whistleblowers use the program to provide valuable information. Companies can promote whistleblowing through communications to employees or training in disclosures, authorising pre-existing and well-used “speak-up” disclosure channels to receive whistleblower disclosures, and proactively protecting and supporting whistleblowers. This includes maintaining guidelines or checklists for assessing and controlling the risk of a whistleblower’s identity becoming known, and safeguarding whistleblowers’ rights to disclose. 

Practical Tips: 

• Promote whistleblowing through communications to employees or training in disclosures. 

• Consider authorising pre-existing and well-used “speak-up” disclosure channels for whistleblower disclosures. 

• Proactively protect and support whistleblowers and maintain guidelines or checklists for assessing and controlling the risk of a whistleblower’s identity becoming known. 

• Safeguard whistleblowers’ rights to disclose. 

Resources and Training 

To ensure that the appropriate resources and training for whistleblower programs are in place, companies should provide eligible recipients with instructions on how to manage disclosures, respond in line with their legal requirements, and the company’s processes to assess, investigate and resolve disclosures. It is also important to involve staff in running the program and investigating disclosures. 

Practical Tips: 

• Provide eligible recipients with instructions on how to manage disclosures, respond in line with their legal requirements, and the firm’s processes to assess, investigate and resolve disclosures. 

Monitoring, Review, and Improving the Program 

To ensure that the whistleblower program in place is regularly monitored, reviewed, and improved upon, companies should schedule periodic reviews of policies and associated procedures and practices. They should also monitor the program’s effectiveness through the design and operation, trust in the program, and the information received by it. 

Practical Tips: 

• Schedule periodic reviews of policies and associated procedures and practices. 

• Monitor the program’s effectiveness through the design and operation, trust in the program, and the information received by it. 

• Seek feedback from whistleblowers to identify areas for improvement and address any concerns they may have. 

Use Information from Disclosures 

To derive value from whistleblower programs, companies must analyse and use the information received from disclosures. This not only helps to identify and address wrongdoing but can also provide valuable insights to senior leaders and help to improve the company's operations. 

Practical Tips:  

• Establish procedures for analysing and acting on the information received from disclosures. 

• Create a system for tracking the outcomes of investigations and the actions taken in response to disclosures. 

• Ensure that senior leaders are informed of the information received from disclosures and are taking appropriate action. 

Embed Executive Accountability for the Program 

Accountability is key to the success of any whistleblower program. To ensure that executives take responsibility for the program, it is essential to designate a senior manager with individual executive accountability. This person should have the authority to oversee and manage the program and should be responsible for ensuring that the program is operating effectively. 

Practical Tips:  

• Designate a senior manager with individual executive accountability for the whistleblower program. 

• Ensure that the senior manager has the necessary authority and resources to manage the program effectively. 

• Provide regular training and support to the senior manager to ensure they remain up to date with the latest developments in whistleblower laws and regulations. 

Ensure Effective Director Oversight 

Effective director oversight is essential to ensuring that the whistleblower program is operating effectively and in accordance with the law. Companies should establish formal arrangements for board or board committee oversight of the policy and program, including considering which board committee is appropriate. Directors should also be provided with frameworks to facilitate effective oversight and engage in regular reporting about the policy and program. 

Practical Tips:  

• Establish formal arrangements for board or board committee oversight of the whistleblower program. 

• Provide directors with frameworks to facilitate effective oversight. 

• Engage directors in regular reporting about the policy and program. 

Conclusion 

Whistleblower programs are essential for companies looking to identify and address wrongdoing within their organisations. ASIC's guide to good whistleblower practices provides valuable insights into the key elements of an effective program. Companies that implement these practices and create a culture that supports whistleblowers will not only comply with the law but may also benefit from increased transparency, improved operations, and enhanced trust with their employees and stakeholders. 

Contact us if you need assistance with reviewing or updating your whistleblower program or dealing with whistleblower disclosures. 

For more practical tips see also ASIC’s Regulatory Guide 270 Whistleblower policies.