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Preventing misconduct through diversity

Inclusion, Culture and Governance

  • 8th July 2020

Diversity and inclusion are widely debated subjects, and rightly so. Many of us know, intuitively, that varied and fresh thinking from a range of experiences will positively support businesses and there’s substantial research showing it yields substantially improved performance.

Recent events have shone a spotlight on the lack of diversity and inclusion in the workplace and it’s now up to businesses to address this long-ignored opportunity. Are we at the tipping point of lasting change? I hope we are, but there’s still a long way to go and we all need to be accountable for taking action.

From the mind to the heart

While improving boardroom diversity and the rich and different perspectives this can bring, the relatively small number of director positions and the commonality of triennial director tenures means that change will not occur as quickly as we need. There is, however, no excuse for a continued lack of diversity within the workforce this can and should be addressed now. Diversity in all its forms must run through an organisation’s veins back to the heart of every decision made.

Prevention is better than a cure

With a cognitively diverse and inclusive culture many benefits are realised but one that is not typically measured is the reduction in misconduct. The Financial Conduct Authority (FCA) noted the link back in 20181 which resulted in a probe into the least diverse financial institutions following a surge of whistleblower complaints2. At its heart, this type of misconduct by workers is often an indicator of poor culture which in turn stems from poor governance.

Be the change you want to see

With the lack of diversity currently front and centre stage this is an ideal time to discuss this issue in UK boardrooms and force them to act to attract varied talent, maintain an inclusive culture and address inequalities in the workplace. Once on the agenda, diversity and inclusion, like all areas of business, requires frequent review and action because standing still means moving backwards!

Less than half the story

Sadly, it is estimated that circa 60 per cent3 of observed misconduct in the workplace goes unreported so the full picture is never fully visible to the board and a false sense of security could be standing in the way of concerted action being taken. A whistleblowing hotline, like Safecalls’, that is embedded properly within the organisation offers an independent forum, one that in recent months, (as noted by Safecall) has seen a significant uptick in usage.

Changes afoot?

Companies will not be able to hide forever on this subject and the EU Whistleblower Protection Directive could be with us by December 2021. This mandates that all companies with more than 50 employees or with an annual turnover of €10 million must have in place suitable internal whistleblowing reporting channels.

We’ll keep you posted as this develops!

What next?

By focussing on improving organisational diversity and inclusion, culture and governance, misconduct can be reduced and a more sustainable organisation built.

Safecall and Beyond Governance can show you how you can foster a new way of working that incorporates inclusion, respect and understanding throughout your workforce — from entry-level positions all the way up to the C-Suite.

The secret to getting started is just one step away.   

Erika Percival
Beyond Governance 
020 3745 1916

Beyond Governance offers a new way of looking at governance. They support boards of directors and key influencers to improve the way their companies make decisions which in turn increases productivity and builds long-term sustainable value. They consult as well as implement pragmatic solutions that consider all stakeholders. The team are former executive level governance professionals from FTSE 250 companies. If you need assistance to streamline your business decision making get in touch with them today.


1 Financial Times ‘FCA to probe link between companies’ poor diversity and misconduct’ - December 2018

2 FT Adviser ‘FCA to look at diversity when assessing firms’ - January 2020

3 CFO Innovation ‘The Major Risks of 60% of Workplace Misconduct being Unreported’ - March 2019

Interested in setting up a speakup hotline

Would your business benefit from having a speakup hotline? Safecall can guide you through the process, setting up a whistleblowing system within your business.