SHRM Poll:
Organizational Whistle-blowing—Reporting
Unethical and Illegal Behavior in the
Workplace
March 25, 2011
Key Findings
•
•
•
•
How do organizations inform employees about how to report unethical and/or illegal
behavior? The top two methods that organizations use to let their employees know how to report
unethical and/or illegal behavior are the employee handbook/company intranet (85%) and newemployee orientation (70%).
What channels do organizations use for reporting unethical and/or illegal behavior? Among
organizations that encourage specific methods for reporting questionable behavior, the vast majority
encourage employees to contact HR (85%). The next two most frequently offered channels for
reporting unethical and/or illegal behavior are contacting the reporting employee’s direct supervisor
(65%) and contacting other senior management (53%). About two out of five organizations (41%)
offer an ethics hotline as a channel for reporting unethical and/or illegal behavior within the
organization.
How do organizations respond to reports of unethical and/or illegal behavior? More than four
out of five organizations (83%) indicated that all reported allegations are investigated, and 17%
indicated that reported allegations are investigated on a case-by-case basis.
Who investigates reports of unethical behavior or illegal activity? The largest percentage of
respondents indicated that HR investigates reported unethical behavior (89%) and illegal activity
(86%). The next most often cited responsibility for investigating reported unethical behavior and
illegal activity is senior management (53% and 56%, respectively).
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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How does your organization generally inform employees about how to
report unethical and/or illegal behavior in your organization?
85%
In the employee handbook or on company intranet
70%
During new-employee orientation
35%
In communications (e.g., written, e-mail, verbal) from HR
31%
Through posters or brochures displayed in staff areas
In communications (e.g., written, e-mail, verbal) from the organization’s CEO,
president or owner
22%
In communications (e.g., written, e-mail, verbal) from the organization’s ethics
officer, compliance officer, audit function or organizational ombudsman
20%
14%
In communications (e.g., written, e-mail, verbal) from direct supervisors
During employee training
6%
In communications (e.g., written, e-mail, verbal) from the organization’s legal
counsel
6%
2%
In policies in addition to employee handbook documentation
Other
0%
3%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Note: n = 356. Percentages do not total 100% due to multiple response options. Excludes responses of “N/A, my organization does not currently have a formal
communication method regarding this type of reporting." ”During employee training" and “in policies in addition to employee handbook documentation" were
recoded from write-in responses for "other."
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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How does your organization generally inform employees about how to
report unethical and/or illegal behavior in your organization?
Comparison by Selected Organizational Demographics
Differences Based
on Organization’s
Operations
Location
Differences Based on
Union Status
Differences Based on
Organization Staff
Size
Differences Based
on Organization
Sector
Nonunion 87%) > union
(70%)
In the employee handbook or on company intranet
Multinational operations
(77%) > U.S.-based
operations only (66%)
During new-employee orientation
Through posters or brochures displayed in staff areas
In communications (e.g., written, e-mail, verbal) from the organization’s
CEO, president or owner
Multinational operations
(42%) > U.S.-based
Union (42%) > nonunion
operations only (26%)
(28%)
Multinational operations
(33%) > U.S.-based
Union (34%) > nonunion
operations only (17%)
(21%)
2,500 to 24,999
employees (82%) > 1 to
99 employees (53%)
2,500 to 24,999
employees (48%) > 1 to
99 employees (12%), 100
to 499 employees (17%)
25,000 or more employees
(74%) > 1 to 99
Publicly owned for-profit
employees (12%) , 100 to (56%) > privately owned
499 employees (17%), 500 for-profit (23%), nonprofit
to 2,499 employees (31%) (24%), government (25%)
2,500 to 24,999
employees (32%) > 100 to
499 employees (13%)
25,000 or more employees
(56%) > 1 to 99
employees (14%), 100 to
499 employees (13%), 500
to 2,499 employees (21%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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How does your organization generally inform employees about how to
report unethical and/or illegal behavior in your organization?
Comparison by Selected Organizational Demographics (continued)
Differences Based
on Organization’s
Operations
Location
Differences Based on
Union Status
Differences Based on
Organization Staff
Size
Differences Based
on Organization
Sector
2,500 to 24,999
employees (43%) > 1 to
99 employees (8%), 100 to
499 employees (12%), 500
to 2,499 employees (17%)
In communications (e.g., written, e-mail, verbal) from the organization’s
ethics officer, compliance officer, audit function or organizational
ombudsman
Multinational operations
(32%) > U.S.-based
Union (38%) > nonunion
operations only (15%)
(17%)
In communications (e.g., written, e-mail, verbal) from direct supervisors
In communications (e.g., written, e-mail, verbal) from the organization’s
legal counsel
Multinational operations
(16%) > U.S.-based
Union (12%) > nonunion
operations only (1%)
(5%)
25,000 or more employees
(37%) > 1 to 99
employees (8%), 100 to
499 employees (12%)
25,000 or more employees
(37%) > 1 to 99
employees (9%), 500 to
2,499 employees (12%)
2,500 to 24,999
employees (12%) > 100 to
499 employees (1%)
25,000 or more employees
(22%) > 1 to 99
employees (2%), 100 to
499 employees (1%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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What methods does your organization encourage employees to use
when reporting unethical and/or illegal behavior in your organization?
Contacting HR
85%
Contacting direct supervisor
65%
Contacting other senior management
53%
Using the organization's ethics hotline
41%
Contacting the organization’s ethics officer, compliance officer,
audit function or organizational ombudsman
31%
Contacting the organization's CEO, president or owner
28%
Contacting the organization’s legal counsel
14%
Through employee surveys
12%
Using the suggestion box or other employee suggestion
program
11%
Other
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Note: n = 361. Percentages do not total 100% due to multiple response options. Excludes responses of “N/A, there are no specific methods that
employees are encouraged to use to report unethical or illegal behavior.”
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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What methods does your organization encourage employees to use
when reporting unethical and/or illegal behavior in your organization?
Comparison by Organization Staff Size
•
Using the organization’s ethics hotline (by staff size): In general, the larger the organization staff size, the more likely organizations are
to encourage the use of the organization’s ethics hotline. Larger organizations (those with 2,500 or more employees) were more likely than
smaller organizations (those with 2,499 or fewer employees) to report that they encourage employees to contact the organization’s ethics
hotline.
Smaller Organizations
•1 to 99 employees (2%)
•100 to 499 employees (23%)
•500 to 2,499 employees (49%)
•
Larger Organizations
•2,500 to 24,999 employees
(79%)
•25,000 or more employees
(89%)
Differences Based on
Organization Staff Size
Larger organizations > smaller
organizations
Contacting the organization’s ethics officer, compliance officer, audit function or organizational ombudsman (by staff size): Larger
organizations (those with 2,500 or more employees) were more likely than smaller organizations (those with 1 to 99 employees) to report
that they encourage employees to contact the organization’s ethics officer, compliance officer, audit function or organizational ombudsman to
report unethical and’/or illegal behavior.
Smaller Organizations
•1 to 99 employees (12%)
Larger Organizations
•2,500 to 24,999 employees
(52%)
•25,000 or more employees
(48%)
Differences Based on
Organization Staff Size
Larger organizations > smaller
organizations
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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What methods does your organization encourage employees to use
when reporting unethical and/or illegal behavior in your organization?
Comparison by Organization Staff Size (continued)
•
Contacting the organization’s legal counsel (by staff size): Larger organizations (those with 2,500 to 24,999 employees) were more
likely than smaller organizations (1 to 99 employees) to report that they that they encourage employees to contact the organization’s legal
counsel.
Smaller Organizations
• 1 to 99 employees (5%)
Larger Organizations
•2,500 to 24,999 employees
(26%)
Differences Based on
Organization Staff Size
Larger organizations > smaller
organizations
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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What methods does your organization encourage employees to use
when reporting unethical and/or illegal behavior in your organization?
Comparison by Selected Organizational Demographics
Differences Based
on Organization’s
Operations
Location
Using the organization’s ethics hotline
Contacting the organization’s ethics officer, compliance officer, audit
function or organizational ombudsman
Contacting the organization’s legal counsel
Differences Based on
Union Status
Differences Based on
Organization Sector
Multinational operations
(65%) > U.S.-based
operations only (31%)
Union (50%) > nonunion
(28%)
Multinational operations
(25%) > U.S.-based
operations only (9%)
Publicly owned for-profit
(26%) > nonprofit (7%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Generally, how does or would your organization respond to reports of unethical
and/or illegal behavior in your organization?
90%
83%
80%
70%
60%
50%
40%
30%
17%
20%
10%
0%
All reported allegations are investigated (formally or
informally), regardless of type of infraction, credibility of
allegation, availability of resources, etc.
Reported allegations are investigated (formally or
informally) on a case-by-case basis, depending on the
nature of the allegation (e.g., type of infraction,
seriousness of allegation, credibility of allegation, etc.)
Note: n = 358 . Excludes responses of “not sure/don’t know.”
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Generally, how does or would your organization respond to reports of
unethical and/or illegal behavior in your organization?
Comparison by Selected Organizational Demographics
Differences Based
on Union Status
All reported allegations are investigated (formally or informally),
regardless of type of infraction, credibility of allegation, availability of
resources, etc.
Reported allegations are investigated (formally or informally) on a
case-by-case basis, depending on the nature of the allegation (e.g.,
type of infraction, seriousness of allegation, credibility of allegation,
etc.)
Differences Based
on Organization
Staff Size
2,500 to 24,999
Nonunion (90%) > union employees (95%) > 100
(80%)
to 499 employees (74%)
100 to 499 employees
Union (20%)> nonunion (26%) > 2,500 to 24,999
(10%)
employees (5%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Generally, who investigates (or would investigate) reports of unethical
and/or illegal behavior in your organization?
89%
86%
HR
53%
56%
Senior management
32%
The organization’s legal counsel
48%
21%
21%
The organization’s compliance officer
14%
13%
The organization’s ethics officer
10%
13%
The organization’s audit function
6%
Outsourced to another firm or outside attorney
Law enforcement
3%
The organizational ombudsman
3%
2%
12%
29%
4%
6%
Other
0%
10%
20%
Unethical behavior
(n = 382)
30%
40%
50%
60%
70%
80%
90% 100%
Illegal activity
(n = 374)
Note: Percentages do not total 100% due to multiple response options.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Generally, who investigates (or would investigate) reports of unethical
behavior in your organization?
Unethical Behavior: Comparison by Selected Organizational Demographics
Differences Based
on Organization’s
Operations
Location
Senior management
U.S.-based operations
only (57%) >
multinational operations
(41%)
The organization’s legal counsel
Multinational operations
(41%) > U.S.-based
operations only (29%)
Differences Based on
Union Status
Differences Based on
Organization Staff
Size
Differences Based
on Organization
Sector
500 to 2,499 employees
(13%) > 1 to 99
employees (1%)
2,500 to 24,999
employees (26%) > 1 to
99 employees (1%), 100 to
499 employees (8%)
The organization’s ethics officer
Multinational operations
(28%) > U.S.-based
Union (27%) > nonunion
operations only (8%)
(12%)
25,000 or more employees
(37%) > 1 to 99
employees (8%)
The organization’s compliance officer
The organizational ombudsman
25,000 or more employees
(37%) > 1 to 99
Publicly owned for-profit
employees (1%), 100 to
(29%) > privately owned
499 employees (8%)
for profit (9%)
2,500 to 24,999
employees (32%) > 1 to
99 employees (8%)
Multinational operations
(6%) > U.S.-based
operations only (1%)
Publicly owned for-profit
(7%) > privately owned for
profit (1%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Generally, who investigates (or would investigate) reports of unethical
behavior in your organization?
Unethical Behavior: Comparison by Selected Organizational Demographics (continued)
Differences Based
on Organization’s
Operations
Location
The organization’s audit function
Law enforcement
Differences Based on
Union Status
Differences Based on
Organization Staff
Size
Differences Based
on Organization
Sector
Union (18%) > nonunion
(9%)
Publicly owned for-profit
(7%) > privately owned for
profit (1%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Generally, who investigates (or would investigate) reports of illegal
behavior in your organization?
Illegal Behavior: Comparison by Selected Organizational Demographics
Differences Based
on Organization’s
Operations
Location
Differences Based on
Union Status
Differences Based on
Organization Staff
Size
Senior management
U.S.-based operations
only (60%) >
multinational operations
(46%)
1 to 99 employees (73%)
> 500 to 2,499 employees
(47%), 2,500 to 24,999
employees (39%)
2,500 to 24,999
employees (64%) > 1 to
99 employees (30%)
The organization’s legal counsel
Multinational operations
(63%) > U.S.-based
operations only (42%)
25,000 or more employees
(63%) > 1 to 99
employees (30%)
2,500 to 24,999
employees (21%) > 1 to
99 employees (3%)
The organization’s ethics officer
Multinational operations
(26%) > U.S.-based
Union (28%) > nonunion
operations only (8%)
(10%)
25,000 or more employees
(33%) > 1 to 99
employees (3%), 100 to
Publicly owned for-profit
499 employees (9%), 500 (24%) > privately owned
to 2,499 employees (9%) for profit (9%)
2,500 to 24,999
employees (30%) > 1 to
99 employees (9%)
25,000 or more employees
(41%) > 1 to 99
employees (9%)
The organization’s compliance officer
The organizational ombudsman
Differences Based
on Organization
Sector
Multinational operations
(5%) > U.S.-based
operations only (1%)
Publicly owned for-profit
(21%), government (23%)
> privately owned for profit
(8%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Generally, who investigates (or would investigate) reports of illegal
behavior in your organization?
Illegal Behavior: Comparison by Selected Organizational Demographics (continued)
Differences Based
on Organization’s
Operations
Location
Differences Based on
Union Status
Differences Based on
Organization Staff
Size
Differences Based
on Organization
Sector
500 to 2,499 employees
(13%) > 100 to 499
employees (1%)
Law enforcement
25,000 or more employees Government (51%) >
Union (42%) > nonunion (19%) > 100 to 499
privately owned for profit
(27%)
employees (1%)
(24%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Does (or would) your organization award financial incentives (e.g., spot
awards, bonuses) to employees who report unethical and/or illegal
behavior in your organization?
Yes, 3%
No, 97%
Note: n = 336. Excludes responses of “not sure.”
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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During the past 12 months, have you personally observed misconduct
that you thought violated your organization’s ethics standards,
company policy or the law?
Yes, 20%
No, 80%
Note: n = 372. Excludes responses of “not sure.”
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Has your organization implemented policy and procedural changes
related to whistle-blowing on unethical and/or illegal behavior in the
past 12 months or is it planning to in the next 12 months?
60%
55%
50%
40%
39%
30%
20%
7%
10%
0%
Yes, we have already implemented
policy and procedural changes
Yes, we are planning to implement
policy and procedural changes in the
next 12 months
No, we have no plans to implement
policy and procedural changes
Note: n = 321. Excludes responses of “not sure.” Percentages do not total 100% due to rounding.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Has your organization implemented policy and procedural changes
related to whistle-blowing on unethical and/or illegal behavior in the
past 12 months or is it planning to in the next 12 months?
Comparison by Selected Organizational Demographics
Differences Based on
Organization’s Operations
Location
Yes, we have already implemented policy and procedural changes
Multinational operations
(49%) > U.S.-based
operations only (35%)
No, we have no plans to implement policy and procedural changes
Differences Based on
Organization Staff Size
2,500 to 24,999
employees (52%) > 100 to
499 employees (27%)
25,000 or more employees
(65%) > 1 to 99
employees (29%), 100 to
499 employees (27%)
100 to 499 employees
(67%) > 500 to 2,499
employees (44%)
Note: Blank cells indicate that there were no significant differences in this category.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Demographics: Organization Industry
Industry
Manufacturing—other
14%
Health care, social assistance (e.g., nursing homes, EAP providers)
12%
Services—professional, scientific, technical, legal, engineering
10%
Financial services (e.g., banking)
8%
Educational services/education
7%
Government/public administration—federal, state/local, tribal
6%
Retail/wholesale trade
6%
Other services (e.g., nonprofit, church/religious organizations)
4%
Transportation, warehousing (e.g., distribution)
4%
Note: n = 374. Percentages do not total 100% due to rounding.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Demographics: Organization Industry (continued)
Industry
Insurance
3%
High-tech
3%
Construction, mining, oil and gas
2%
Consulting
2%
Publishing, broadcasting, other media
2%
Manufacturing—auto/auto-related
2%
Real estate, rental, leasing
2%
Services—accommodation, food and drinking places
2%
Utilities
2%
Arts, entertainment, recreation
1%
Association—professional/trade
1%
Biotech
1%
Telecommunications
1%
Pharmaceutical
1%
Other
5%
Note: n = 374. Percentages do not total 100% due to rounding.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Demographics: Organization Sector
Privately owned for-profit organization
49%
Nonprofit organization
21%
Publicly owned for-profit organization
20%
Government sector
10%
0%
10%
20%
30%
40%
50%
60%
Note: n = 352. Excludes “other” organization sectors.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Demographics: Organization Staff Size
50%
40%
30%
30%
23%
23%
20%
17%
8%
10%
0%
1 to 99 employees
100 to 499 employees
500 to 2499
employees
2500 to 24999
employees
25000 or more
employees
Note: n = 349. Percentages do not total 100% due to rounding.
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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Demographics: Other
Does organization have U.S.-based
operations (business units) only or
does it operate multinationally?
U.S.-based operations
70%
Multinational operations
30%
Note: n = 385
Single-unit company: A company in
which the location and the company
are one and the same.
30%
Multi-unit company: A company that
has more than one location.
70%
Note: n = 384
• 15% of organizations indicated that
employees at their work location were
unionized.
Note: n = 374
Is your organization a single-unit company or a
multi-unit company?
Are HR policies and practices determined by
the multi-unit corporate headquarters, by each
work location or both?
Multi-unit headquarters determines HR
policies and practices
54%
Each work location determines HR policies
and practices
1%
A combination of both the work location and
the multi-unit headquarters determine HR
policies and practices
45%
Note: n = 274
Organizational Whistle-blowing - Reporting Unethical and Illegal Behavior in the Workplace | ©SHRM 2011
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SHRM Poll: Organizational Whistle-blowing—Reporting Unethical
and Illegal Behavior in the Workplace
Methodology
•
•
•
•
Response rate = 15%
Sample comprises 390 HR professionals randomly
selected from SHRM’s membership.
Margin of error is +/- 5%
Survey fielded January 6-14, 2011
For more poll findings, visit:
www.shrm.org/surveys
Follow us on Twitter:
http://twitter.com/SHRM_Research
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