KPMG Australia is planning stronger disciplinary consequences for misconduct and an overhaul of its whistleblower programme following independent reviews that raised concerns about employees’ fears of retaliation for speaking up.
The revised action plan outlines measures to strengthen accountability, improve reporting processes and reinforce ethical conduct, HR Leader reported.
The firm said it would review its conduct and consequences framework, including stronger financial penalties for serious misconduct and greater board oversight of how sanctions are applied.
Stronger accountability
KPMG will also explore ways to improve transparency around the consequences of misconduct and share lessons from ethical conduct cases through leadership communications and training.
Partnership agreements may be amended to support the changes.
The measures follow third-party reviews that examined alleged misconduct, including concerns about the treatment of a whistleblower.
One review by Principia Advisory found that employees feared raising concerns or challenging leadership could affect their performance assessments, access to work, career progression and workplace relationships.
Whistleblower protections
KPMG plans a comprehensive update of its whistleblower programme, including changes to reporting procedures, governance arrangements and investigations.
The firm will also clarify who is eligible to receive disclosures and how whistleblowers should be managed.
“This will include a comprehensive update of our entire whistleblower program to address the third-party review findings and recommendations, including redesign of the end-to-end whistleblowing and speak-up framework and review of our investigation processes (including the appointment and use of external investigators),” the action plan noted.
The firm will introduce training for partners and employees on whistleblower legislation, internal policies and the rights of people raising concerns.
Training will also clarify the responsibilities of those receiving disclosures and help distinguish ethical concerns from other workplace issues.
KPMG said it would publish the updated whistleblower programme.
Ethical conduct and workplace pressure
The Principia review also recorded concerns about employees under-reporting time worked because of explicit or implicit pressure from colleagues and partners.
It identified perceptions that some partners overstated their contributions to winning client projects in internal systems, potentially affecting sales metrics.
The review further found that commercial pressure could make it harder for employees to challenge decisions or escalate concerns, particularly when commercially important clients were involved.
In response, KPMG plans to review its learning and development programmes to promote ethical decision-making and stronger professional judgement.
It will also simplify and integrate its ethical expectations, including the standards employees and partners are required to uphold.
KPMG Australia CEO John Sams and independent chair Michael Ebeid acknowledged shortcomings in the firm’s handling of confidential client information, senior personnel conduct and its engagement with a whistleblower.
“We have not met our own expectations, or those of the whistleblower, clients and broader stakeholders. These failings do not reflect the values of KPMG. We owe it to our people, clients and other stakeholders to understand these failings, learn from them and address them. We are committed to doing so,” they elaborated.
KPMG said its action plan would continue to evolve as further findings and recommendations were finalised and considered.