Corporate Crime !

What an interesting can of worms  the Australian parliament is thinking of bringing into law.  The debate has been examining ways to protect whistle blowers who have the courage to drag corporate crime into the public arena, often at the expense of their careers.

In the arcane world of politics, that can mean different things to different people.  In recent years we have had a litany of scandals where those at the peak of the union movement have been virtually unchecked in their access to members funds.  Evidence emerged of high living, including the hiring of prostitutes, lavish dinners and unauthorised travel.  This has been hugely embarrassing to politicians with a close association with the union movement.

The banks came under adverse scrutiny when it was revealed that customers who had gone to them for financial advice had been steered into schemes where commissions enriched their adviser but failed to provide the security being sought.  In the majority of such cases the matter comes to public notice when a whistle blower chose to speak out - and often produces hard evidence to support the claim.

At present, the authorities have a limited degree of protection they can offer such whistle blowers.  If that person is not instantly dismissed, they at least can be certain  that their career path has ended.  It is now being proposed that legislation enable whistle blowers to be granted a substantial financial reward for their courage in coming forward be guaranteed.

Both of the major political parties views that proposal with apprehension.  The Labor side of politics is dismayed that financial rewards would probably shine a spotlight into the murky world of unions, and the coalition would fear that Australian firms contracting in countries where bribery is the only way to secure business contracts would suffer exposure.

If this proposal is to be legislated into being it will be because it receives the assent of the balancing  segment of the Senate - and they are demanding that is apply equally across the political spectrum.  They demand that whistle blowers be protected - in all and any circumstances.

It seems to be the American model that is finding favour here.  The Securities and Exchange Commission can reward whistle blowers by granting them a share of the fine imposed by the court for the offence detected - and that could run to millions of dollars.   There is a real danger that such a reward would create a breed of "corporate bounty hunters " who infiltrate the business world solely to sniff out exposure opportunities.

It would not be beyond the bounds of reality that with the lure of such rich rewards such people might edge others towards indictable crime as a means of gaining this reward strategy.  Obviously it is in the public interest to reduce crime in all aspects of the business world - but that pearl of wisdom needs to apply.   Be careful what you wish for !