Voluntary Disclosure Management

Voluntary Disclosure Management, also known as whistleblowing, is what employees or others associated with an organisation will seek to do when they have identified wrong doing or conduct which they believe breaches an organisational policy or legislation.  It follows then, for an organisation to become aware of these potential issues, it must have ways in which any suspected breaches of wrong doing can be reported.  Used effectively, this is a powerful tool for the early identification of wrong doing within an organisation.  Not only can it be used to report suspicious conduct or wrong doing, it can also be used to gather information on areas subject to risk or for obtaining suggestions for system improvements.

Company officers and other persons have legal obligations under the Corporations Act (the Act) if they receive a revelation from a whistleblower. Unless those persons handle the revelation correctly they may inadvertently breach the Act if they tell an unauthorised third party, including other officers of the company. Any unauthorised revelation may trigger significant civil and criminal consequences.

Corporate cultures of silence, which allow wrong doing to go undetected, are seen as contributing to the recent round of local and international corporate failures. A regime protecting whistleblowers is seen as part of the answer because it encourages reporting of contraventions by employees.  The Australian Stock Exchange's Corporate Governance Council issued Principles of Good Corporate Governance and Best Practice Recommendations in 2003 and in November 2006 has exposed a draft of recommended changes. The code requires listed entities to make disclosures in their annual reports of the extent to which they do or do not follow the guidelines.

The principles recommend that companies establish a Code of Conduct for directors and senior executives. The recommendations include fostering and encouraging whistleblower behaviour by staff.  We believe, in accordance with best practice, having a reporting system alone is not enough.  The system adopted must be open and receptive for employees, capturing the very philosophy of the values and ethics expounded in the Code of Conduct.  Only then will it permeate the hearts and minds of employees and invite their actions.

We provide a total solution to Voluntary Disclosure Management bench marked against the current Australian Standard. Our secure website enables employees or others (the discloser) wishing to report alleged misconduct to login and provide their information with confidence the information will remain confidential (as far as possible).  When making a disclosure, disclosers will be provided with a unique Disclosure Identification Number (DIN).  The DIN will enable the discloser to log back onto the website to post and receive private communications relating to the information they have provided.  This enables and encourages both the initial disclosure and continued contact to take place even if the discloser chooses to remain anonymous throughout the process.

Once the information has been securely entered into the web site, there are a number of options which can be tailored for your organisation to manage the process.  We can advise you by e-mail and/or SMS that information has been provided and requires action and follow-up, additionally, we can provide an investigative service which will look into the information received.

We recommend that information about the disclosure service, such as the web site address, be included on employee pay slips and other material in and around the work site such as invoices and purchase orders.
If you would like to know more please download a brochure or contact us.