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The First Word: Strengthening whistleblowing for transparency and integrity

The role of whistleblowing has never been more critical as organisations across Asia Pacific strive for greater transparency and stronger ethical conduct.

In the past year, companies have faced increasing scrutiny over their internal culture and transparency. As a result, many organisations are adopting and promoting whistleblower policies to foster a culture of integrity and accountability.

Increased media coverage of high-profile cases has also shone the spotlight on the importance of whistleblowing, spurring organisations to take whistleblowing concerns more seriously.

In Singapore, a case of abuse at a pre-school that first came to light on social media and drew widespread condemnation from the public highlights the importance of strong whistleblowing programmes and the harmful effects of ineffective reporting systems in organisations.

In addition, certain jurisdictions have introduced new legislation or updated existing laws to improve the effectiveness of whistleblowing systems. For instance, there have been updates to regulations concerning financial disclosures, corporate governance, and protection against retaliation.

In May 2024, Malaysia unveiled a new national anti-corruption strategy which involves financial incentives for members of the public who aid the government in their anti-graft crackdown. The country is also planning to amend its Whistleblower Protection Act to enhance protection for whistleblowers and handle complaints of inappropriate behaviour in a more transparent and impartial manner.

In line with these developments, organisations are increasingly recognising whistleblowing as a strategic tool to enhance transparency and ethical behaviour. Their focus has expanded beyond traditional fraud and bribery detection to include issues like bullying, harassment, and conflicts of interest.

To delve deeper into organisational capabilities and attitudes towards whistleblowing, Deloitte’s latest Conduct Watch survey report collected insights from more than 500 participants across Asia Pacific.

The survey found a growing number of organisations in the region implementing whistleblowing programmes, signalling stronger recognition of its importance. This also reflects increasing commitment towards ethical transformation, as companies aim to foster transparency, accountability, and workplace culture that prioritises 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.

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The positive impact of whistleblowing has moved beyond the traditional function of risk management; it also provides ancillary benefits such as enhanced organisational transparency, improved employee morale, and increased stakeholder trust.

In recognition of this, organisations have shifted beyond legal requirements and implemented whistleblowing programmes with the intent to improve the culture of asethics and integrity (26%) and encourage a positive and transparent working environment (23%).

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Effective whistleblowing policies are set and implemented by leaders. As such, senior management is shouldering more responsibility for organisations’ whistleblowing practices, reflecting increased recognition of its importance. In 2024, 32% of C-suite executives are overseeing whistleblowing programmes – a notable rise from just 11% in 2023.

This shift in responsibility highlights the critical role of leadership. As boards and senior executives take on greater responsibility for whistleblowing programmes, they can strengthen a culture of integrity and ensure that whistleblowing programmes are effective and aligned with organisational values.

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The implementation of robust whistleblowing programmes is not without roadblocks. Most of the challenges faced by organisations in implementing whistleblowing policies are related to trust by employees and stakeholders. In this regard, 61% of challenges cited by organisations are related to employee issues such as concerns about the independence of the reporting process (22%), awareness of whistleblowing programmes (21%), and fear of retaliation (18%).

Given these challenges, coupled with the evolving demands on businesses, organisations should strengthen their policies to protect whistleblowers and ensure transparency in how reports are handled. Apart from clear and consistent communication and regular training, organisations should also consider the benefits of engaging an external whistleblowing service provider to assuage stakeholders’ concerns.

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In terms of the types of disclosures that are received, human resource grievances remain the most common among respondents, increasing from 22% in 2023 to 24% in 2024. There was a notable increase in the disclosures related to conflict of interest – from 15% in 2023 to 24% in 2024.

This indicates a growing trend of heightened awareness and vigilance regarding ethical standards within organisations, which reflects organisations’ efforts to educate their workforce about the importance of identifying and disclosing conflicts of interest. It also suggests that employees are paying more attention to potential conflicts of interest and are more willing to report them.

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To ensure the effectiveness of their whistleblowing policies, organisations must consistently communicate these practices to stakeholders and offer clear guidance on using whistleblowing channels.

Deloitte’s survey found that less than a quarter (24%) of respondents provide annual communication regarding their whistleblowing programmes, while 44% do not adhere to a specific timeframe for communicating their policies to stakeholders. Therefore, organisations need to evaluate and finetune their communication strategies to ensure effective dissemination of information related to their whistleblowing policies and procedures.

Based on these insights highlighted above, organisations can strengthen their whistleblowing policies by addressing existing gaps, refining their approach, and ensuring alignment with both organisational needs and industry best practices. By doing so, they can create a more effective and responsive whistleblowing framework.

When handled appropriately, whistleblowing can lead to improved corporate governance while protecting stakeholders from harm and fostering a culture of transparency and integrity.

 


 

oo-yang-pingAbout the author

Yang Ping is the Deloitte Global and Asia Pacific Conduct Watch Leader. Conduct Watch is a secure and seamless whistleblowing solution which helps organisations accelerate how they identify, respond to, resolve and report on fraud and other misconduct. He is also the Forensic & Financial Crime Leader for Deloitte Malaysia. He has more than 25 years of experience in professional services and has advised clients of various sizes and industries on fraud and anti-bribery risk, compliance, and assurance-related matters in the UK, US, and Asia.

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