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Whistleblowers Ultimately Help Their Companies Perform Better, a New Study Shows

11/24/2018

Summary

Corporate scandals can be very costly to investors and cause the company a web of lawsuits that could have otherwise been avoided. A recent 10-year study done by NAVEX Global shows that employees who blow the whistle on wrongdoing, known as whistleblowers, help their companies become more profitable in the long run. Companies that provide employees with channels through which they can disclose unethical activity earn an even greater return on assets than firms with underdeveloped whistleblowing platforms.

Key Points

  • Whistleblowers play a key role in cleaning up a company's financial and corporate culture. It allows for change and exposes corruption.
  • Criteria from the study covered a range of categories including financial reporting, sexual harassment and workplace safety.
  • While employees often fear retaliation from coming forward about misconduct and wrongdoing, many companies now educate their employees on whistleblowing, building a culture where reporting misconduct is acceptable.  

Discussion Questions

1. How does whistleblowing help companies become more profitable and have better performance?
2. What can companies do to develop stronger whistleblowing platforms that allows and encourages employees to report more corporate misconduct?

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