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Bosses in dark over wrongdoing
Topic Started: Feb 15 2009, 12:30 PM (31 Views)
Warren
Administrator
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Bosses in dark over wrongdoing

May 21, 2008 04:27am
Article from: AAP

EVER seen wrongdoing at work that the bosses may not be aware of, but you have no way of telling them?

There may be many such cases that pass undetected by management because their workers don't want to be labelled a sneak.

A global survey released today has found it is a common practice among businesses in other countries to support whistleblowing, but that Australia lags behind.

The research by business consultant Grant Thornton found that just 26 per cent of privately-held businesses in Australia have measures in place to support potential whistleblowers.

The survey of 7800 business owners across 34 countries puts Australia well below the global average of 45 per cent and the European business average of 42 per cent.

"Privately-held businesses can greatly benefit from introducing measures to accommodate whistleblowers within their organisation for it is these people who are likely to alert management to poor business practice within the workplace," said Tony Markwell, Grant Thornton Australia's national head of privately-held business.

"But with Australia lagging so far behind our counterparts in Europe and the rest of the world, these results indicate that we have some serious catching up to do, in terms of both accommodating whistle blowers and managing corporate governance as a whole."

At the top of the league table is Brazil with 85 per cent of their businesses having measures in place to support whistleblowers, followed by the Scandinavian economies of Denmark and Sweden both at 71 per cent.

Greek and Taiwanese businesses come in last with just 18 per cent and just below Hong Kong at 20 per cent and Japan 22 per cent.

Within Australia, South Australia tops the states with 32 per cent, followed by 30 per cent of Victorian businesses.

At the other end of the scale, Queensland is dragging its heels with just 15 per cent.

"Often whistleblowing can be the only way that information about issues such as rule breaking, criminal activity, cover-ups and fraud can be brought to management's attention before serious damage is suffered," Mr Markwell said.

"Without sufficient risk-management measures in place, whistleblowers can be victimised as informants or traitors rather than a valuable early-warning system which can save lives, money and reputations.

"The other, and perhaps greater and more prevalent, risk is that they remain quiet or leave the organisation and the underlying issues remain undetected."
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