The number of global organisations without a hotline has halved since 2022, as countries introduce whistleblower protection laws and regulators order companies to offer safe routes to step forward.
But, according to the latest EY Global Integrity Report, 54% of those who have used such channels at large international businesses and public bodies said they faced pressure not to do so.
Overall, integrity standards are improving, found the report. However, corporate misconduct appeared to be on the rise and the gap between what leaders said about integrity versus how they acted was growing. This, said the report authors, perpetuated integrity risk within the organisation.
The study also revealed that many employees feared they would be ignored and their careers hampered if they were to speak up. Almost a third of respondents who had blown the whistle said they had feared for their safety.
Among the respondents were board members, four in 10 of whom claimed they had faced retaliation themselves or witnessed adverse consequences for individuals who reported misconduct.
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Organisations’ leaders tended to overestimate progress, EY said. Nearly half of board member respondents said it was easier for employees to speak up, but only 26% of staff agreed. More than half of senior managers (57%) said they felt under pressure not to report misconduct.
Against a backdrop of geo-political and economic challenges, more employees would consider dishonest behaviour than two years ago. Nearly 40% of all respondents – and two-thirds of board members – said they were willing to behave unethically to improve their career or financial position. This is more than one-and-a-half times higher than two years ago.
Interviews at companies such as advanced manufacturers, consumer products firms, technology and financial services companies were conducted by global research agency Ipsos.
The data included the views of 5,464 respondents from 53 countries.
Andrew Gordon, EY’s global forensic and integrity services leader said the findings underscored the need for a safe, consequence-free environment for whistleblowers to ensure corporate integrity. Ignoring these challenges could lead to mistrust in corporate governance, potentially affecting stock prices and market perceptions negatively.
“Individuals must be made to feel safe, and they should also know that their concerns will be acted on, without any consequence,” Gordon said.
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