Deloitte analysis: Whistleblowing programmes in Asia Pacific organisations have increased, signalling their commitment to ethical transformation

PHNOM PENH, 23 September 2024 – Deloitte’s latest Conduct Watch Survey report has found that more organisations in the region are implementing whistleblowing programmes, signalling stronger recognition of the importance of whistleblowing and underscoring their commitment to ethical transformation by fostering transparency, accountability, and workplace cultures that value integrity and compliance. 91% of respondents have implemented whistleblowing policies, an increase from 87% in 2023. Respondents are also increasingly concerned about whistleblowing policies, with 66% indicating it as a high priority as compared to 58% in 2023.

The second edition of Deloitte’s annual Conduct Watch report provides insights into the status of whistleblowing policies within organisations in Asia Pacific. It also traces the evolution of whistleblowing programmes since the inaugural survey in 2023 and offers an in-depth understanding of organisations’ perceptions towards whistleblowing. The report examines the objectives of organisations’ whistleblowing programmes, availability of reporting and communication channels, maintenance of such frameworks, as well as how data is protected.

“The results from the second Conduct Watch Survey report are a sign of steady progress. Organisations are continuing to recognise the positive impact that whistleblowing programmes have on risk management, which spills over to ancillary benefits such as enhanced organisational transparency, improved employee morale, and increased stakeholder trust. The emergence of diverse motivations from organisations to implement whistleblowing policies also highlights their maturing organisational culture and evolving and broadening focus on ethical conduct and risk management. Amidst the evolving regulatory landscape and increasing stakeholder expectations, it is pertinent for organisations to implement and continually refine their whistleblowing policies as strong corporate governance would inevitably affect investor sentiments,” said Mr Oo Yang Ping, Deloitte Global and Asia Pacific Conduct Watch Leader.

Increasing importance placed on whistleblowing policies by firms in Asia Pacific

Top management is shouldering more responsibility for organisations’ whistleblowing practices, which signals a stronger recognition of the importance of whistleblowing. In 2024, 32% of C-suite executives are overseeing their organisations’ whistleblowing programmes – a significant increase compared to 11% in 2023.

Organisations employ whistleblowing programmes to foster a proactive ethical culture, enhance workplace transparency, and focus on financial integrity. Between 2023 and 2024, organisations have placed greater emphasis on improving the culture of ethics and integrity (from 25% to 26%) and encouraging a positive and transparent working environment (from 21% to 23%). The focus on detecting fraud and other financial misconduct increased from 23% to 28%, while there has been a decrease in initiatives mandated by legal, regulatory or group requirements from 20% to 11% – an indication that organisations are becoming more internally motivated to implement whistleblowing policies to ensure responsible governance.

Whistleblowing has grown to become one of the most useful tools for organisations to safeguard their interests and their stakeholders, especially when it comes to issues pertaining to financial crime and compliance. The top anticipated and observed benefits of a sound whistleblowing programme are early detection and prevention of fraud (35%), creating a safe working environment (31%) and enhancing stakeholder confidence (20%). This suggests that organisations are recognising the broader benefits that robust whistleblowing programmes bring beyond their traditional purpose of maintaining ethical standards through the detection of fraud and misconduct.

Clearer, more consistent communication of whistleblowing policies is required

Organisations need to make consistent efforts to communicate their whistleblowing policies to their stakeholders and provide sufficient guidance on the effective use of whistleblowing channels. 44% of respondents indicated that they do not adhere to a specific timeframe for communicating their whistleblowing policies to stakeholders, while less than a quarter (24%) provide annual communication regarding their programmes. Thus, organisations need to evaluate and refine their communication strategies to ensure effective dissemination of information related to their whistleblowing policies and procedures.

Most challenges faced by organisations when implementing whistleblowing programmes are related to trust by employees and their stakeholders in their policies. In this regard, 61% of challenges organisations face in implementing a whistleblowing programme are related to employee issues such as independence, awareness, and fear of retaliation. This marks an improvement from 2023, when 69% of the challenges were related to similar employee issues. Given these challenges and the evolving demands on businesses, adequate consideration should be given to the benefits of engaging an external whistleblowing service provider to assuage stakeholders’ concerns.

Based on these insights, organisations can tailor and enhance their whistleblowing policies by addressing the gaps in their programmes, improving functionality, and ensuring alignment with organisational needs and industry best practices, thus fostering a more robust and responsive whistleblowing framework.

To learn more about the Deloitte 2024 Conduct Watch Survey report, please visit: 2024 Conduct Watch Survey Report

Methodology
From 18 March 2024 to 2 May 2024, Deloitte canvassed the opinions of over 500 participants across Asia Pacific, including Australia, China, Korea and Southeast Asia with oversight of their organisations’ whistleblowing policies. The online survey gathered insights on organisational capabilities and attitudes towards whistleblowing. Survey respondents spanned over 10 different industries and ranged from organisations with less than 1,000 employees to those with over 50,000 employees.

Drawing from our experience in providing independent whistleblowing services to more than 300 organisations over two decades, the survey was designed to gather information on organisations’ whistleblowing strategies and culture, policies and procedures, implementation and execution, and reporting and monitoring.

To reflect the diversity of the Asia Pacific region, the survey was made available in multiple languages, including Japanese, Korean, Simplified Chinese, and Traditional Chinese.

The report covers four key areas:

Strategy and Culture: The report examines the strategic approach and organisational culture surrounding whistleblowing. It emphasises the importance of aligning priorities between the organisation and its stakeholders, and fostering a culture of transparency, accountability, and ethical behaviour.

Policies and Procedures: The survey sheds light on the policies and procedures implemented by organisations to support whistleblowing. It highlights the need for robust frameworks that protect whistleblowers and encourage reporting.

Implementation and Execution: The report evaluates the effectiveness of organisations' implementation and execution of their whistleblowing programmes. It identifies challenges and provides insights on how organisations can enhance their practices.

Reporting and Monitoring: The survey delves into the reporting and monitoring mechanisms adopted by organisations to ensure the effectiveness of their whistleblowing programmes. It emphasises the importance of selecting the right metrics to measure the programme’s impact.

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