A new report from NAVEX provides unprecedented insights into corporate whistleblowing practices, revealing substantial differences in how private and public companies handle internal reporting and workplace misconduct.
The 2025 Whistleblowing & Incident Management Benchmark Report, which analyzed data from over 4,000 organizations representing nearly 69 million employees, uncovered notable disparities in reporting rates, substantiation, and response strategies between private and public entities.
Private companies demonstrated a significantly higher reporting rate of 1.80 reports per 100 employees, compared to 1.10 for public companies. Moreover, private organizations showed a greater likelihood of substantiating reported matters, with a 50% substantiation rate versus 43% for public companies.
The report also highlighted intriguing differences in organizational responses. Private companies were more likely to separate employment when a case was substantiated, while public companies tended to impose disciplinary actions. Interestingly, private companies also showed a higher propensity to take no action on substantiated matters, suggesting more extreme response patterns.
Workplace civility remained a critical concern, representing nearly 18% of all reports and being substantiated at a 46% frequency. Carrie Penman, NAVEX's Chief Risk and Compliance Officer, emphasized that seemingly minor workplace behavior issues can significantly impact organizational culture and productivity.
The research revealed other compelling trends, including a record-high overall substantiation rate of 46% and a shift in reporting channels. For the first time, web and digital reporting overtook traditional hotline methods, with alternative reporting channels showing the highest substantiation rates at 61%.
Retaliation reporting also saw a slight increase, rising from 2.84% to 3.08%. However, the substantiation rate for these incidents remained low at 18%, suggesting potential gaps in investigation procedures and workplace protection mechanisms.
The findings underscore the evolving landscape of corporate compliance and the critical importance of robust, adaptable reporting systems. As workplace dynamics continue to change, organizations must develop sophisticated approaches to internal reporting, investigation, and resolution of misconduct allegations.
Experts suggest that these insights can help companies refine their risk management strategies, foster more transparent work environments, and ultimately strengthen organizational integrity.
