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When one thinks of whistle-blowers, it is easy to only think of those who expose irregularities in the public service. However, there is a whole community of business sector whistle-blowers out there, and they are stepping up the pace, according to a new report by global risk and compliance firm Navex.
For organisations looking to set up internal compliance, corruption reporting, and incident management systems, the Navex 2024 Whistleblowing and Incident Management benchmark report, which looks back on 2023, is a good place to start. The report is published annually and the results are shared worldwide, not just with the firm’s customers. Navex has what it says is the world’s largest and most comprehensive database of reports and outcomes and the information it publishes is useful on various levels.
Whistle-blowers in the business sector around the world had a busy year in 2023. For the 2024 report, Navex states, 3 784 organisations are represented, with 1.86-million reports recorded. This is the highest ever total of reports received per 100 employees.
In addition, the report substantiation rate also reached an 11-year high, meaning that more reports were received that were found to be true.
Navex says that while the number of reports received did reach record levels, at the same time it is heartening to see the use of internal reporting channels on the rise. “When reporters put their trust in internal resources and use them to raise concerns and make inquiries without fear of retaliation, they shine a light on places where the organisation may need to act before a potential issue is escalates to a bigger problem.”
Furthermore, says the firm, an increase in the volume of substantiated reports may not necessarily mean that there is more unethical behaviour within organisations but rather that compliance internal compliance teams are more successful in encouraging reporters to come forward while equipping them with the knowledge of how to make a high-quality report.
“For many organisations in 2023, it appears that dynamic was healthy.”
However, cautions Navex, “Effective internal reporting programs are increasingly competing against outside alternatives, and those programs need ongoing focus to earn and keep trust as the go-to channel for reporters who want to make a positive difference.”
For all the information, including a complete breakdown of the findings, request a copy of the report.
More details
Navex defines its risk categories as follows:
- Accounting, Auditing, and Financial Reporting – pertains to financial misconduct, internal controls, audit, etc.
- Business Integrity – addresses how an organisation interacts with outside parties, with risk types including bribery and corruption, conflicts of interest, fraud/waste/abuse, and human rights, among others.
- Human Resources, Diversity, and Workplace Respect – often relates to employee relations or misconduct, and include discrimination, harassment, and retaliation, among others.
- Environment, Health, and Safety – involves an element of safety typically pertaining to workplace health or environmental regulations, among others.
- Misuse or Misappropriation of Assets – specifies that company assets or time is being wasted or used in a manner other than what is.
- Other – a category for hard-to-classify reports that might range from complaints about too few snacks in the breakroom to feral cats prowling the corporate parking lot (those are actual reports organisations have received over the years).
According to the report, the most popular methods of reporting were a hotline (34%), followed by the web (32%), and other mechanisms (such as open door or e-mail, also 34%).
The bulk of reports came from North America – presumably because of its headquarters location in Oregon – followed by Asia Pacific, Europe, South America, the Middle East, Africa, and Australia. Corruption Watch notes the same phenomenon in that most of our reports tend to come from Gauteng, where we are based and where we have the highest visibility – not because there is more corruption in Gauteng.
The top industries from where reports originated are the retail trade, followed by finance and insurance, and healthcare and social assistance.
Navex also reveals that the number of reports where the whistle-blower was comfortable with providing their name rose from around about 47% for the previous couple of years to 50% in 2023, indicating that reporters feel more confident of identifying themselves without retaliation.
