Jennifer Ho co-authored this article.
Let’s face it, Southeast Asia’s tech ecosystem has seen more than its fair share of scandals in recent years.
From eFishery inflating revenue figures, financial misconduct at TaniFund, to founders faking their academic credentials, startup misconduct has been thrust into the spotlight.
Many have wondered how to stop something like this from happening again. While fraud can’t be eliminated entirely, startups at any stage can take steps to detect and deal with it, starting with a solid whistleblower policy.
A whistleblowing mechanism is a simple tool that any company can use to create accountability. It allows internal and external stakeholders to report fraud and misconduct, with the assurance that they will not be penalized for doing so.
In fact, it was an internal whistleblower who brought the misconduct at eFishery to light, but they were too late to save the firm’s reputation. With the right policy in place, the next scandal might be caught – and contained – much earlier.
While startups need different governance controls depending on various factors, including maturity, sector, and operations, a strong whistleblowing policy can be built at any stage.
We’ve developed a whistleblowing policy template to make the process practical for young companies, but there are a few elements that every startup should include in theirs.
See also: The VC legal arsenal to combat entrepreneurial fraud
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