NAVEX Report Reveals Stark Differences in Corporate Whistleblowing Practices Between Private and Public Companies
TL;DR
Private companies lead in Reports per 100 Employees and substantiation rates, indicating a more proactive approach to compliance.
NAVEX's 2025 Benchmark Report analyzes internal reporting data to provide insights for compliance officers and executives.
The report helps organizations understand cultural health, operational risks, and improve workplace civility, ultimately fostering transparent and safer environments.
Insider Trading and Political Activity saw significant increases while Product Quality and Safety declined, reflecting dynamic shifts in reporting trends.
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A comprehensive analysis of workplace reporting practices has revealed notable disparities between private and public companies' approaches to internal incident management, according to the NAVEX 2025 Whistleblowing Benchmark Report.
The study, which examined 2.15 million reports from over 4,000 organizations representing nearly 69 million employees, highlighted substantial differences in reporting patterns. Private companies demonstrated a higher reporting rate of 1.80 reports per 100 employees, compared to 1.10 for public companies, with private organizations also showing a greater likelihood of substantiating reported matters (50% versus 43%).
Key findings indicate that private companies are more extreme in their response to substantiated reports, either separating employment or taking no action, while public companies tend to impose disciplinary measures. Workplace civility concerns remained the most reported issue, representing nearly 18% of all reports and underscoring the critical role of organizational culture in maintaining operational effectiveness.
The report also noted significant shifts in reporting channels, with web and digital reporting overtaking traditional hotline methods for the first time. Interestingly, reports made through alternative channels demonstrated the highest substantiation rate at 61%, suggesting evolving communication preferences among employees.
Retaliation reporting remains a critical concern, with median reporting rates increasing from 2.84% to 3.08% in 2024, though substantiation rates remain low at 18%. This trend highlights the continued challenges organizations face in creating transparent and safe reporting environments.
The benchmark report's insights provide valuable guidance for compliance officers, executives, and board members seeking to understand and mitigate organizational risks across different company structures.
Curated from News Direct
