Whistle while you work

In 2022, ASIC conducted a review of whistleblower programs of seven large firms to assess their arrangements to handle and respond to whistleblower disclosures and the level of executive and board oversight of these arrangements. In March 2023, a consecutive Report 758 entitled Good Practices for Handling Whistleblower Disclosures identified seven features of a strong whistleblower program and outlined the good practices observed during the review.
As a reminder, ASIC’s Report 758 aimed to encourage entities to establish effective and transparent arrangements for handling whistleblower disclosures and ensuring whistleblowers were protected. The report provided guidance on key areas of whistleblower programs, including developing a culture that supports whistleblowing, providing clear channels for reporting, and regular program review and evaluation. Entities with effective whistleblower arrangements received useful reports and improved corporate governance and performance.
ASIC Commissioner Danielle Press hereby wants to emphasize that directors have a key role in overseeing their firm’s whistleblower program and ensuring that it is effective. Boards are responsible for their firm’s governance and risk management arrangements, including whistleblower policies and programs. To improve oversight, directors must carefully consider the outcomes they want from their firm’s whistleblower program and ensure that it operates in a way that achieves those outcomes.
ASIC encourages directors to ask themselves how they are overseeing their firm’s whistleblower policy and program, whether they are providing informed oversight, and whether they have access to sufficient, relevant information to achieve the program’s purposes. The report also provides better practices for directors to consider, such as promoting whistleblowing, identifying metrics to monitor the program’s effectiveness, having defined roles and responsibilities, receiving regular updates from executives, and receiving regular training or briefings on the firm’s whistleblowing regime and directors’ duties.
Whistleblowing is essential for maintaining a transparent and accountable work culture. Addressing whistleblower disclosures promptly and effectively can improve overall corporate performance and governance. ASIC will continue to review firms’ whistleblower policies and arrangements for handling disclosures, and it encourages directors to refer to Information Sheet 247 entitled Company Officer Obligations under the Whistleblower Protection Provisions.