For those who think more internal reporting through whistleblowing hotlines means trouble—think again. Research released by NAVEX Global shows higher internal whistleblower activity never correlates with negative business outcomes; in fact, encouraging internal reporting adds to the bottom line.
A recent study out of George Washington University, called Evidence on the Use and Efficacy of Internal Whistleblowing Systems and based on data supplied by compliance software provider NAVEX Global, examines the relationship between internal reporting system usage (whistleblower hotlines) and business performance.
Researchers were given anonymised access to more than three million internal report records from approximately 5,000 public companies—including more than half of the Fortune 500. The data examined includes hotline reports over a 14-year period between 2004 and 2017.
The report...