The Reality Gap: Boards Still Struggling to Create Genuine Speak-Up Cultures

Nearly half of Australian employees still don’t feel comfortable reporting workplace misconduct despite 89% of organisations having formal whistleblowing policies in place, according to new research highlighted by ethics and whistleblowing provider Report It Now™.

“This represents one of the most pressing governance challenges today,” says Craig McFarlane, Director of Report It Now™. “While 76% of Australians believe whistleblowers make Australia a better place, organisations still struggle to translate this sentiment into workplace reality.”

The research reveals a concerning gap between policy implementation aaround workplace misconduct and cultural adoption, with only 43% of employees feeling comfortable reporting misconduct they witness. McFarlane attributes this to insufficient training, concerns about reporting systems’ independence, and employees’ fears they won’t be supported if they speak out.

“The challenge isn’t about having policies—it’s about embedding ethical decision-making into the organisational DNA through consistent leadership, independent oversight, and practical support mechanisms,” McFarlane explains.

Building an Effective Speak-Up Culture

Report It Now™ recommends boards focus on three key areas:

1. Leadership and Training: Senior executives must set the ethical tone through their actions, with regular ethics training and open discussions about challenging scenarios.
2. Independent Oversight: External whistleblowing systems provide the necessary independence that helps employees feel secure raising concerns, offering anonymity, reduced fear of retaliation, and clear escalation paths.
3. Cultural Integration: A speak-up culture thrives when ethical behaviour becomes part of everyday operations, including regular communication about expectations and visible responses to issues.

“The real test isn’t in the big moments—it’s in everyday interactions,” notes McFarlane. 

“When employees see colleagues raising concerns without fear and those concerns being addressed professionally, that’s when you know your speak-up culture has truly taken root.”

Board Responsibilities Around Workplace Misconduct in 2025

As organisations navigate increasingly complex ethical challenges, boards must ensure sustained commitment to ethical culture, regularly review effectiveness, and maintain strong support systems with clear communication channels.

McFarlane emphasises that “Creating a genuine speak-up culture requires sustained board commitment. It’s not a one-time initiative but an ongoing journey of cultural transformation.”

Five Questions Directors Should Ask About Speak-Up Culture

1. How effectively do our systems support ethical behaviour?
2. What patterns do we see in our reporting data?
3. How quickly and effectively do we respond to reports?
4. How do we protect and support those who speak up?
5. How do we ensure consistency across our operations?

Report It Now, established in 2007, continues to expand its services across New Zealand, Australia, and Singapore, helping organisations create more transparent workplaces through its comprehensive ethics reporting solutions.