In the for-purpose sector we’re driven by passion, people, and purpose. We roll up our sleeves and get stuck into complex and meaningful work – often with fewer resources and bigger expectations than our corporate counterparts. As we focus on our mission to do good, it’s understandable that compliance in the context of mandatory staff training can slip into the background.
However, good intentions won’t protect us from the very real threat of legal, financial and reputational consequences.
As Chair of the Board at Palmerston Association, a large for-purpose organisation supporting people impacted by alcohol and other drugs, I’ve seen first-hand how critical it is to treat compliance as an essential part of our culture – not an administrative burden.
Like many of my peers in this sector, I’m convinced that compliance is not just about ticking a box. Rather, it’s about protecting our people, safeguarding our mission, and leading with integrity.
The risks are real, and broad
When compliance is treated as optional, we expose our organisations to significant legal, financial and reputational risks that could harm our people and our mission.
I also discovered that organisations and leaders are subject to secondary and vicarious liability. Secondary liability arises when anyone in a position of authority allows or permits a person to do something unlawful, then they are treated as if they did that behaviour themselves. Vicarious liability holds organisations and their directors and officers accountable for the actions of their employees.
But there are quieter costs – erosion of trust within teams, stress, lower productivity, and a higher turnover. I’ve witnessed this in organisations where investing in ongoing training is not prioritised, or where they have failed to act early on cultural issues and have not managed incidents that are often red flags.
Positive outcomes of a lived experience
In 2023, Palmerston reflected deeply on our safety culture following significant changes to WA’s workplace safety legislation – especially around psychosocial hazards.
Instead of assuming that our leaders ‘had it covered’, two board members and I attended EEO Specialists’ workplace behaviour training sessions alongside our CEO and senior leaders. We wanted to learn together and make sure we fully understood the implications – not just for compliance, but for culture as well.
We also spent time talking to our people about their understanding of the new safety environment, and what it meant for us as an organisation. We learned together, updated our policies, and ‘walked the talk’ to demonstrate how important safety and wellbeing is to us.
It was a powerful message for the organisation: we’re all in this together, and it matters at every level.
Compliance as culture, not a tick box
Through this experience, I’ve learned that when compliance is considered as a part of culture, we can build stronger, safer, more respectful workplaces. At Palmerston, we’ve embedded learning into the rhythm of our organisation – not just at induction but throughout the employee journey.
It’s not perfect and we continue to improve, but we are determined to keep the spirit of partnership alive. We make space for questions, feedback, and continual learning. I believe this approach has been the key to maintaining trust at all levels within the organisation.
Sharing our learnings
In the spirit of giving, which is so intrinsic in the for-purpose sector, I would like to share some of our learnings with you:
- Making sure training is accessible, engaging and relevant – especially for frontline workers.
- Inviting the board to get actively involved – not just through reports, but by participating where possible.
- Treating compliance as part of workplace culture and wellbeing – not separate from it.
- Acknowledging that this work is ongoing. Culture isn’t ‘set and forget’.
While compliance may not be a glamorous part of leadership, it’s an intrinsic part of it. It can strengthen aspects that are most significant to an organisation like ours: trust, safety, purpose, and impact.
If you’re a director or senior leader in the for-purpose sector, I encourage you to lean in. Attend the relevant workplace behaviour training. Ask probing questions. Sit alongside your teams and learn together. Your engagement will send positive signals to the entire organisation.
I believe we’re all navigating similar challenges. So, let’s keep learning from each other and share what works – if our people thrive, so will the communities we serve.
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The author, Louise Johnstone Forster, is the Chair of Palmerston Association. She is a transformational leader who has worked in numerous roles within aged, community and disability services, education and training.
