Our previous articles have described the protections that companies and constitutional corporations are required to provide under the Corporations Act 2001 (Cth) (Corporations Act) to whistleblowers whose disclosures qualify for protection, and the serious civil and criminal penalties that they may face if they fail to do so. Broadly speaking, these whistleblowers must have the confidentiality of their identity protected and they must be protected from detriment.
Schools should consider carefully before concluding that they have the expertise to manage whistleblower disclosures internally. The following questions may assist in assessing the risks:
In its Regulatory Guide 270 Whistleblower policies, the Australian Securities and Investments Commission (ASIC) includes, as one of its good practice tips, the suggestion that entities consider authorising an independent external whistleblower service provider as an Eligible Recipient to directly receive disclosures, where it is financially viable for them to do so. A service provider may provide greater confidence to employee whistleblowers, including confidence in the service provider’s objectivity. A service provider is also likely to offer better access for external disclosers, such as suppliers. Through an independent external whistleblower service, a whistleblower can:
It is acknowledged that there is a financial cost to engaging a whistleblower service provider. Any decision not to engage one should take into account the financial and reputational costs that could arise from failing to manage a whistleblower disclosure with the utmost sensitivity, discretion and objectivity and in accordance with the requirements of the Corporations Act.
Schools that take pride in having robust, widely-publicised programs for child protection, fraud and corruption control and complaints handling may believe that they have little to fear from a whistleblower disclosure. It would be easy to underestimate the complexity of investigating a disclosure while offering all the mandatory protections to the whistleblower, particularly if the disclosure involves allegations of historic misconduct.
Visit this CompliSpace Whistleblower Resources Page to access more resources including a webinar recording and links to other School Governance articles.