More APAC companies are implementing whistleblowing programs

A growing number of companies in Asia Pacific (APAC) are implementing whistleblower strategies, part of a larger trend in curbing unethical conduct. A new survey from Deloitte underscores the importance of ethical transformation for APAC business leaders.

The study by Deloitte found that an impressive 91% of Asia Pacific organizations have already implemented whistleblowing programs in 2024, which is up from 87% in 2023. A majority of respondents (66%) said that they believe whistleblowing policies are high priority, also up slightly from last year.

The ramp up in focus comes as governments around the world are making efforts to beef up their regulations and enforcement on whistleblowing. Corporate fraud and corruption at the highest levels can cause enormous financial losses and reputational damage – something that regulators are clearly keen on avoiding.

That is why some governments are working to protect whistleblowers, who are considered the first line of defense against white-collar crime. With rules already on the books, Hong Kong, Japan, and Mainland China have been leading the way in Asia when it comes to regulatory protection of whistleblowers.

Interestingly, the survey shows a noticeable shift towards addressing a broader range of ethical issues such as bullying, harassment, and conflicts of interest, while reports of more ‘classic’ white-collar crimes like fraud and bribery have declined.

This could be part of the wider adoption of ESG initiatives, which are driving organizations to consider social issues more closely, in addition to sustainability and governance issues. Getting human resources issues under control is an important part of maintaining a healthy company culture.

The study also found that top-level management is increasingly taking ownership of whistleblower policies, with 32% of C-suite leaders overseeing said policies. This signals that companies recognize the importance of the issue.

Greater accountability and transparency in companies is important for the overall performance and health of the business, which can improve stakeholder confidence and ESG scores. This is increasingly part of the larger strategy to build more trust and improve corporate governance.

“As organizations and institutions across this diverse and dynamic region strive for greater transparency and ethical conduct, the role of whistleblowing has never been more critical,” said Oo Yang Ping, a leader at Deloitte. “Overall, the landscape of whistleblowing is evolving with a greater emphasis on protection, accessibility, and accountability, reflecting a growing recognition of its role in promoting transparency and ethical behavior.”

“While organisations are increasingly recognising the value of whistleblowing in promoting transparency, accountability, and ethical leadership, there is still significant room for improvement in the systems and processes that support these efforts. To maintain and enhance trust in whistleblowing programmes, organisations should focus on modernising their approaches, ensuring proper mechanisms are in place, and reinforcing the tone from the top.”