ESG Without Robust Whistleblowing Is Just Ethicswashing 

Leading ethics reporting provider challenges organisations to back ESG commitments with proper infrastructure.

Melbourne, Australia: Report It Now, a global provider of ethical reporting services, today warns that many Australian organisations’ Environmental, Social, and Governance (ESG) commitments amount to little more than ‘ethicswashing’ without proper whistleblowing infrastructure in place.

As ESG frameworks become increasingly central to business operations across Australia and the Asia-Pacific region, many organisations are overlooking the fundamental role of independent ethics reporting in maintaining genuine accountability.

“Many businesses proudly showcase their ESG frameworks, but without robust whistleblowing systems, these commitments lack genuine accountability,” says Craig McFarlane, director of Report It Now. “Data shows that organisations lose approximately 5% of revenue to fraud annually. This isn’t just a financial issue – it’s a governance failure that undermines authentic ESG efforts.”

“When organisations rely solely on internal reporting systems, they create an inherent conflict of interest that can compromise anonymity and discourage reporting. True ESG compliance requires independent oversight and secure channels for ethical concerns to be raised,” McFarlane adds.

Research from the Association of Certified Fraud Examiners shows that 43% of occupational frauds are detected through tip-offs, making whistleblowing systems the most effective method for identifying workplace misconduct. Despite this, many organisations continue to rely on internal reporting systems that may compromise anonymity and discourage reporting.

“We’re seeing organisations make substantial investments in ESG consultants and sustainability reporting, but completely overlook the importance of robust, anonymous ethical infrastructure,” Greg Dunn, fellow director at Report It Now. “Strong governance needs both strategic vision and practical implementation.”

“The reality is that boards are increasingly focused on ethical practices, but may not realise the critical role of independent reporting systems that allow employees and other stakeholders to speak up about an issue they encounter in the workplace,” Dunn adds. “When we review internal reporting systems, we often find opportunities to significantly strengthen confidentiality and trust.”

The stakes are particularly high for listed companies, Dunn notes. “Investors are becoming more sophisticated in their evaluation of ESG credentials, which is encouraging. A robust whistleblowing system isn’t just about compliance—it’s a clear signal to stakeholders about an organisation’s commitment to genuine governance.”

The implementation of robust whistleblowing systems has been shown to reduce fraud losses by up to 50% through early detection and prevention. This statistic becomes particularly significant as organisations face increasing pressure from stakeholders to demonstrate genuine commitment to ESG principles.

Recent changes to state whistleblowing laws in Australia place greater responsibility on business leaders to maintain safe environments and support employees looking to anonymously report wrongdoing. ASIC has reported dramatic surges in whistleblower reports, with numbers nearly tripling in recent years from 278 to 817 reports, highlighting the growing importance of proper ethical reporting infrastructure.

McFarlane emphasises the practical benefits: “Time and again, we see how early detection through proper reporting systems helps organisations address issues before they escalate. It’s an essential component of modern governance that supports and validates broader ESG initiatives.”

Report It Now’s EthicsPro® platform provides organisations with a complete solution for ethical reporting, offering:

• Confidential 24/7 hotlines for anonymous reporting
• Enterprise case management system
• Multiple reporting channels across mobile, desktop, and tablet devices
• Automated benchmarking and analytics
• Comprehensive staff training and support
• Full regulatory compliance assistance

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.