Corporate sector whistle blowing in Australia: Ethics and corporate culture

Whistleblowing provisions were introduced into the Corporations Act 2001 (Cth) to protect officers, employees and company contractors who make disclosures regarding contraventions or possible contraventions of the Corporations Act. The implementation of whistleblowing programs has also become accepted as an aspect of good corporate governance. The ASX Corporate Governance Council's revised Good Corporate Governance Principles and Recommendations, issued in August 2007, recommend that listed companies have a code of conduct and suggest that codes identify measures that companies can take to encourage the reporting of unlawful or unethical behaviour, including how they protect whistleblowers. To be effective, legal and regulatory initiatives require a shift in corporate culture and ethical values. There are many obstacles to be overcome in developing a corporate mindset that is conducive to disclosure of wrongdoing within the company. There is little empirical evidence in Australia about corporate sector whistleblowing; much of what is known comes from the public sector. The few cases which have received prominence indicate that adverse treatment of whistleblowers is an ongoing and systemic problem. The research literature on business ethics and legal compliance in the United States post Sarbanes-Oxley helps explain the difficulties in encouraging companies to develop an ethical culture conducive to whistleblowing.