External regulation and internal whistleblowing frameworks: an Australian perspective

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2020

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Lombard, S.
Brand, V.

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Book chapter

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Source details - Title: Corporate Whistleblowing Regulation: Theory, Practice and Design, 2020, Ch.5, pp.113-132

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Abstract

Internal corporate whistleblowing systems, or ‘institutionalised’ whistleblowing, could offer valuable corporate governance benefits, particularly around notions of compliance and risk management. There are sound regulatory theories to explain the value of such systems as part of a corporate governance framework. The Australian legislature clearly recognises the benefits of such systems, as is illustrated by recent legislative reform that includes mandatory development of such systems for some companies. This chapter provides an overview of recent legislative reforms inrelation to corporate whistleblowing, particularly around provisions aimed at ensuring development of internal whistleblowing frameworks. In addition, it analyses the approach adopted by the Australian legislature with reference to theories in relation to corporate governance and regulatory approaches to ensure development of such internal whistleblowing systems. The chapter lastly provides some comparison between the pre-reform practices of some of Australia’s largest companies and the requirements of the new regime.

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