Corporation complaints handling
Corporations may receive complaints from people or organisations:
- outside the corporation – such as those who use its services, supply goods or services to the corporation, live or work in the same community, funding bodies, licensing bodies, lending bodies, or regulators
- inside the corporation – such as members, directors, staff, or volunteers.
Sometimes complaints are a way for people to:
- express what’s important to them
- raise issues that need to be resolved.
How your corporation deals with complaints is known as complaints handling.
The way a corporation responds to complaints can improve or damage its reputation. With good procedures in place, resolving a complaint can be a smooth process. It can even strengthen a corporation. It's good governance to develop a culture within your corporation that ensures complaints are treated efficiently and seriously.
A best-practice way to handle complaints involves:
- looking at complaints as a form of feedback from someone who cares about the corporation and its objectives
- committing to resolving complaints and proving that commitment to the person who made the complaint (the complainant).
If you’re handling a disagreement between people about how to run a corporation, see resolving disputes.
What people complain about
Depending on your corporation's purpose and activities, you may receive complaints about operational matters:
- employment matters
- quality or performance of services
- maintenance of corporation assets
- meeting funding agreement obligations
- unpaid tax or superannuation
- native title matters
- the corporation’s business decisions.
You may also receive complaints about failing to follow processes in the CATSI Act or your corporation's rule book such as:
- considering membership applications
- electing directors
- calling and holding meetings
- counting quorum for a meeting
- seeking member approval to give related party benefits.
Complaints policy and procedure
You might build a positive reputation for your corporation if you handle complaints well. A policy and procedure can help your corporation do this.
Your policy and procedure would let people know how to make a complaint and who to talk to about it (or where it should be sent). Your corporation might have different ways it approaches internal complaints – from members, directors or staff – and external complaints – from customers, creditors, funders or regulators.
The policy and procedure could include these steps.
- Acknowledge the complaint quickly and politely.
- Tell the complainant the next steps and when they can expect a response from the corporation, whether you need to examine the matter further, refer it elsewhere or seek expert advice.
- Set up a record of the complaint and how it was handled.
- Try not to get defensive. Maintain a polite and respectful attitude.
- Listen (or read) carefully.
- Fully understand the matter. Make sure you know what action the complainant expects the corporation to take and have all the details in writing.
- Speak with everyone involved. Get all the facts.
- Treat personal information in confidence unless the person agrees to their information being disclosed. For example, identifying information about the complainant.
- Give each complaint careful consideration. Different complaints may need different responses. They might involve different people at your corporation. With straightforward complaints, a simple explanation may be all that’s needed. If the issue concerns how the corporation is run, check what your rule book says.
- Communicate. Let the person know how their complaint is progressing.
- Tell the complainant what you can and cannot do. Make sure the complainant understands.
- Implement the solution right away if the complainant agrees to it.
- Tell the complainant why you can’t fix the problem or it’s not your responsibility if this is the case.
- Formalise the outcome. Give the complainant your decision and reasons in writing.
Australian standards for handling complaints
There are best practice standards in Australia for handling disputes and conflicts.
They address these elements:
- Creating an environment open to feedback (including complaints), resolving complaints and boosting the organisation’s ability to improve its products and services.
- Involving and securing managers’ commitment and ensuring enough resources to manage complaints, including staff training.
- Recognising and addressing the needs and expectations of complainants.
- Providing an open, effective and easy-to-use process for complaining.
- Analysing and evaluating complaints to improve the quality of products and services, including customer service.
- Auditing the complaints handling process.
- Reviewing the effectiveness and efficiency of the complaints handling process.
For a fee you can download the Australian Standard 10002:2022 Guidelines for complaint management in organisations (ISO 10002:2018, NEQ).
The Commonwealth Ombudsman's Better Practice Guide to Complaint Handling or advice on business.gov.au is also useful for all types of organisations, not just government agencies.
Pay attention to the issues
The information from complaints can help you see wider issues in the corporation, for example about its:
- business activities
- governance arrangements.
You might use this information for:
- monitoring and evaluating business performance
- guiding strategic decisions.
The board and staff should make sure the corporation learns from every complaint.