A recent study by the Centre for Investor Protection at the National University of Singapore (NUS) Business School has uncovered significant inadequacies in the whistleblowing policies of Singapore Exchange (SGX) primary-listed issuers. Analysing disclosures from 536 companies, the study found that many policies lack transparency, independent oversight, and clear protections for whistleblowers, which are crucial for effective corporate governance.
The study evaluated whistleblowing disclosures in annual and sustainability reports for FY2023 and FY2024, as well as on corporate websites, using a 20-item Whistleblowing Scorecard. The average score was 20.6 out of 40, with only 54.7% of issuers scoring 20 or above, and less than 10% reaching 30 or higher. This highlights the gaps in compliance with SGX rules, such as the absence of an independent function to investigate complaints and insufficient confidentiality measures.
Key findings include:
– 23.7% of issuers did not disclose an independent function for investigating reports.
– 85.1% committed to confidentiality but lacked procedural details.
– Only 0.7% provided specific support measures for whistleblowers.
– 19.8% failed to detail oversight beyond generic references to corporate governance codes.
Professor Mak Yuen Teen, Director of the Centre for Investor Protection, emphasised the importance of robust whistleblowing policies, stating, “Many corporate scandals could have been prevented if organisations have in place robust and rigorous whistleblowing policies that foster trust amongst employees and other stakeholders.”
The study calls for improved transparency and governance in whistleblowing mechanisms to prevent corporate misconduct and enhance trust in the system. The full report is available for download on the NUS Business School website.
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