Companies Incorporate Active Whistleblowing Systems

Whistleblowing often brings fear of retaliation upon those who are seeking to expose the wrongdoings at their workplace. While this happens, whistleblowing does not have to be associated with negativity. Companies that have a whistleblowing system in place and embrace it as part of their company culture can experience beneficial results.

According to a lead researcher in a George Washington University study on whistleblowing systems, companies that embrace a whistleblowing system have more responsive management and are better at effectively managing problems. This is in juxtaposition to those who must go outside of the company for help, leading to additional problems.

Whistleblower Study Shows Competitive Advantages

The study found that companies with accessible whistleblower outlets may have competitive benefits, namely, greater productivity and profitability. Those companies that encourage individuals to speak out about problems tend to be more successful. In the same vein, it seems that many larger, well-run companies have processes, such as hotlines, in place that encourage employees to speak out. In fact, according to the study, the more internal activity that is conducted at a company, the greater the increase is in return.

Ignoring the Stigma

Internal reporting can help compliance personnel to remedy situations by collaborating with their directors. Unfortunately, a stigma often follows the notion of a company having many whistleblowers. Whistleblowing allows companies the opportunity to remedy issues where it may not otherwise be privy.

According to the study, companies that are less concerned about whistleblowing tend to have poorer governance traits. Companies that have weak corporate governance are more likely to have executives who suppress unhappy employees from sharing their thoughts and feelings.

Active Company Whistleblowing Systems Prove Best

On the other hand, companies that have a more active internal reporting system saw fewer lawsuits filed against them, along with smaller awards and settlements. Researchers believe that making whistleblower reports publicly available is the best situation, though it is unknown if that will happen. The more reports a company receives, the more active its system becomes. If this tells us anything, it is that managers and directors need to work hard to capture these reports and engage with their employees.

Cherry Hill Employment Lawyers at Sidney L. Gold & Associates, P.C. Help Whistleblowers Experiencing Retaliation

If you or a loved one has been facing retaliation in the workplace due to whistleblowing, our Cherry Hill employment lawyers at Sidney L. Gold & Associates, P.C. can help. For a free consultation, contact us online or call us at 215-569-1999 today. Located in Pennsauken, New Jersey, we proudly serve clients throughout South Jersey.