Corporate Whistleblowers and Financial Incentives

Corporate whistleblowing laws seek to encourage reporting of misconduct and ultimately ensure business practices align with the standards expected by the community. An imminent review will evaluate whether past legislative change has been successful in achieving these objectives in Australia. The review is also an opportunity to consider the desirability of proposed reforms, including offering financial incentives to whistleblowers who contribute significantly to enforcement activities. Since the last inquiry into Australian corporate whistleblowing legislation, scholarship has emerged on the effectiveness of incentives. Meanwhile, incentive programs in the United States and Canada have matured such that they can be carefully evaluated. Drawing on these extensive materials, this article provides a state-of-the-art perspective on whistleblower incentives in Australia. It concludes that a whistleblower award program would be an evidence-based option for any future reform directed at maintaining and improving standards of Australian business conduct.