Ensuring Compliance and Ethical Responsibility in Small Businesses Ensuring Compliance and Ethical Responsibility in Small Businesses

Ensuring Compliance and Ethical Responsibility in Small Businesses


Small businesses must adhere to WHS regulations to avoid penalties, legal liabilities, and damage to reputation. Non-compliance can lead to fines, legal actions, and decreased trust among employees and customers. Therefore, understanding legal compliance and ethical responsibility in managing psychosocial hazards is crucial for every small business.

Some of the main causes of psychological hazards in the workplace include Bullying and Harassment. Being such significant contributors to psychological risk, they are still largely misunderstood and confused.

The definition of Bullying in the workplace is repeated unreasonable behaviour directed at an individual or group, causing a risk to health and safety.

Harassment, including Sexual harassment is unwelcomed sexual advances, requests for sexual favours and other verbal or physical conduct of a sexual nature. Harassment, and sexual harassment can be single, one-off events that are prohibited under WHS regulations and businesses must take proactive measures to prevent them.

According to SafeWork Australia, one in three people (33%) have encountered sexual harassment at their workplace in the past five years. Under Work Health and Safety (WHS) regulations, small businesses are mandated to effectively manage risks associated with psychosocial hazards, including bullying and harassment. These hazards pose significant threats to the mental and physical well-being of employees, as well as to overall workplace morale and productivity.

Effective management of these psychosocial risks involves education and raising awareness, including creating and enforcing robust policies, conducting regular training sessions and establishing clear reporting procedures. Employers should also ensure a supportive environment where employees feel safe to report incidents without fear of retaliation.

By fostering a culture of respect and inclusion, small businesses not only comply with legal requirements but also uphold ethical standards, promoting a positive and safe workplace for all employees.

Mary van Sambeek, HR Specialist, Business Solutions Hub, says, “Business Solutions Hub is here to help you tackle bullying and sexual harassment head-on! Taking a proactive approach ensures compliance while fostering a culture where every employee feels safe, respected and valued.”

If you need help creating a supportive environment in your organisation, our HR Specialists can guide you on:

  • Building open communication channels that encourage employee well-being
  • Providing mental health resources and support
  • Developing policies that promote work-life balance
  • Implementing training programs for managers to identify and address psychosocial risks

Let us help you create a positive workplace culture.

Call 1300 445 687 or email us at info@businesssolutionshub.com.au for assistance today.