1. March 25, 2011 SHRM Poll: Organizational
Whistle-blowingReporting Unethical and Illegal Behavior in the
Workplace
2. Key Findings
How do organizations inform employees about how to report
unethical and/or illegal behavior? The top two methods that
organizations use to let their employees know how to report
unethical and/or illegal behavior are the employee handbook/company
intranet (85%) and new-employee orientation (70%).
What channels do organizations use for reporting unethical
and/or illegal behavior? Among organizations that encourage
specific methods for reporting questionable behavior, the vast
majority encourage employees to contact HR (85%). The next two most
frequently offered channels for reporting unethical and/or illegal
behavior are contacting the reporting employees direct supervisor
(65%) and contacting other senior management (53%). About two out
of five organizations (41%) offer an ethics hotline as a channel
for reporting unethical and/or illegal behavior within the
organization.
How do organizations respond to reports of unethical and/or
illegal behavior? More than four out of five organizations (83%)
indicated that all reported allegations are investigated, and 17%
indicated that reported allegations are investigated on a
case-by-case basis.
Who investigates reports of unethical behavior or illegal
activity? The largest percentage of respondents indicated that HR
investigates reported unethical behavior (89%) and illegal activity
(86%). The next most often cited responsibility for investigating
reported unethical behavior and illegal activity is senior
management (53% and 56%, respectively).
3. How does your organization generally inform employees about
how to report unethical and/or illegal behavior in your
organization? Note: n = 356. Percentages do not total 100% due to
multiple response options. Excludes responses of N/A, my
organization does not currently have a formal communication method
regarding this type of reporting." During employee training" and in
policies in addition to employee handbook documentation" were
recoded from write-in responses for "other."
4. How does your organization generally inform employees about
how to report unethical and/or illegal behavior in your
organization? Comparison by Selected Organizational Demographics
Note: Blank cells indicate that there were no significant
differences in this category. Differences Based on Organizations
Operations Location Differences Based on Union Status Differences
Based on Organization Staff Size Differences Based on Organization
Sector In the employee handbook or on company intranet Nonunion
87%) > union (70%) During new-employee orientation Multinational
operations (77%) > U.S.-based operations only (66%) 2,500 to
24,999 employees (82%) > 1 to 99 employees (53%) Through posters
or brochures displayed in staff areas Multinational operations
(42%) > U.S.-based operations only (26%) Union (42%) >
nonunion (28%) 2,500 to 24,999 employees (48%) > 1 to 99
employees (12%), 100 to 499 employees (17%) 25,000 or more
employees (74%) > 1 to 99 employees (12%) , 100 to 499 employees
(17%), 500 to 2,499 employees (31%) Publicly owned for-profit (56%)
> privately owned for-profit (23%), nonprofit (24%), government
(25%) In communications (e.g., written, e-mail, verbal) from the
organizations CEO, president or owner Multinational operations
(33%) > U.S.-based operations only (17%) Union (34%) >
nonunion (21%) 2,500 to 24,999 employees (32%) > 100 to 499
employees (13%) 25,000 or more employees (56%) > 1 to 99
employees (14%), 100 to 499 employees (13%), 500 to 2,499 employees
(21%)
5. How does your organization generally inform employees about
how to report unethical and/or illegal behavior in your
organization? Comparison by Selected Organizational Demographics
(continued) Note: Blank cells indicate that there were no
significant differences in this category. Differences Based on
Organizations Operations Location Differences Based on Union Status
Differences Based on Organization Staff Size Differences Based on
Organization Sector In communications (e.g., written, e-mail,
verbal) from the organizations ethics officer, compliance officer,
audit function or organizational ombudsman Multinational operations
(32%) > U.S.-based operations only (15%) Union (38%) >
nonunion (17%) 2,500 to 24,999 employees (43%) > 1 to 99
employees (8%), 100 to 499 employees (12%), 500 to 2,499 employees
(17%) 25,000 or more employees (37%) > 1 to 99 employees (8%),
100 to 499 employees (12%) In communications (e.g., written,
e-mail, verbal) from direct supervisors 25,000 or more employees
(37%) > 1 to 99 employees (9%), 500 to 2,499 employees (12%) In
communications (e.g., written, e-mail, verbal) from the
organizations legal counsel Multinational operations (16%) >
U.S.-based operations only (1%) Union (12%) > nonunion (5%)
2,500 to 24,999 employees (12%) > 100 to 499 employees (1%)
25,000 or more employees (22%) > 1 to 99 employees (2%), 100 to
499 employees (1%)
6. What methods does your organization encourage employees to
use when reporting unethical and/or illegal behavior in your
organization? Note: n = 361. Percentages do not total 100% due to
multiple response options. Excludes responses of N/A, there are no
specific methods that employees are encouraged to use to report
unethical or illegal behavior.
7. What methods does your organization encourage employees to
use when reporting unethical and/or illegal behavior in your
organization?
Using the organizations ethics hotline (by staff size): In
general, the larger the organization staff size, the more likely
organizations are to encourage the use of the organizations ethics
hotline. Larger organizations (those with 2,500 or more employees)
were more likely than smaller organizations (those with 2,499 or
fewer employees) to report that they encourage employees to contact
the organizations ethics hotline.
Contacting the organizations ethics officer, compliance
officer, audit function or organizational ombudsman (by staff
size): Larger organizations (those with 2,500 or more employees)
were more likely than smaller organizations (those with 1 to 99
employees) to report that they encourage employees to contact the
organizations ethics officer, compliance officer, audit function or
organizational ombudsman to report unethical and/or illegal
behavior.
Comparison by Organization Staff Size Smaller Organizations Larger
Organizations Differences Based on Organization Staff Size
1 to 99 employees (2%)
100 to 499 employees (23%)
500 to 2,499 employees (49%)
2,500 to 24,999 employees (79%)
25,000 or more employees (89%)
Larger organizations > smaller organizations Smaller
Organizations Larger Organizations Differences Based on
Organization Staff Size
1 to 99 employees (12%)
2,500 to 24,999 employees (52%)
25,000 or more employees (48%)
Larger organizations > smaller organizations
8. What methods does your organization encourage employees to
use when reporting unethical and/or illegal behavior in your
organization?
Contacting the organizations legal counsel (by staff size):
Larger organizations (those with 2,500 to 24,999 employees) were
more likely than smaller organizations (1 to 99 employees) to
report that they that they encourage employees to contact the
organizations legal counsel.
Comparison by Organization Staff Size (continued) Smaller
Organizations Larger Organizations Differences Based on
Organization Staff Size
1 to 99 employees (5%)
2,500 to 24,999 employees (26%)
Larger organizations > smaller organizations
9. What methods does your organization encourage employees to
use when reporting unethical and/or illegal behavior in your
organization? Comparison by Selected Organizational Demographics
Note: Blank cells indicate that there were no significant
differences in this category. Differences Based on Organizations
Operations Location Differences Based on Union Status Differences
Based on Organization Sector Using the organizations ethics hotline
Multinational operations (65%) > U.S.-based operations only
(31%) Contacting the organizations ethics officer, compliance
officer, audit function or organizational ombudsman Union (50%)
> nonunion (28%) Contacting the organizations legal counsel
Multinational operations (25%) > U.S.-based operations only (9%)
Publicly owned for-profit (26%) > nonprofit (7%)
10. Generally, how does or would your organization respond to
reports of unethical and/or illegal behavior in your organization?
Note: n = 358 . Excludes responses of not sure/dont know.
11. Generally, how does or would your organization respond to
reports of unethical and/or illegal behavior in your organization?
Comparison by Selected Organizational Demographics Note: Blank
cells indicate that there were no significant differences in this
category. Differences Based on Union Status Differences Based on
Organization Staff Size All reported allegations are investigated
(formally or informally), regardless of type of infraction,
credibility of allegation, availability of resources, etc. Nonunion
(90%) > union (80%) 2,500 to 24,999 employees (95%) > 100 to
499 employees (74%) Reported allegations are investigated (formally
or informally) on a case-by-case basis, depending on the nature of
the allegation (e.g., type of infraction, seriousness of
allegation, credibility of allegation, etc.) Union (20%)>
nonunion (10%) 100 to 499 employees (26%) > 2,500 to 24,999
employees (5%)
12. Generally, who investigates (or would investigate) reports
of unethical and/or illegal behavior in your organization? Note:
Percentages do not total 100% due to multiple response
options.
13. Generally, who investigates (or would investigate) reports
of unethical behavior in your organization? Unethical Behavior:
Comparison by Selected Organizational Demographics Note: Blank
cells indicate that there were no significant differences in this
category. Differences Based on Organizations Operations Location
Differences Based on Union Status Differences Based on Organization
Staff Size Differences Based on Organization Sector Senior
management U.S.-based operations only (57%) > multinational
operations (41%) The organizations legal counsel Multinational
operations (41%) > U.S.-based operations only (29%) The
organizations ethics officer Multinational operations (28%) >
U.S.-based operations only (8%) Union (27%) > nonunion (12%) 500
to 2,499 employees (13%) > 1 to 99 employees (1%) 2,500 to
24,999 employees (26%) > 1 to 99 employees (1%), 100 to 499
employees (8%) 25,000 or more employees (37%) > 1 to 99
employees (1%), 100 to 499 employees (8%) Publicly owned for-profit
(29%) > privately owned for profit (9%) The organizations
compliance officer 2,500 to 24,999 employees (32%) > 1 to 99
employees (8%) 25,000 or more employees (37%) > 1 to 99
employees (8%) The organizational ombudsman Multinational
operations (6%) > U.S.-based operations only (1%) Publicly owned
for-profit (7%) > privately owned for profit (1%)
14. Generally, who investigates (or would investigate) reports
of unethical behavior in your organization? Unethical Behavior:
Comparison by Selected Organizational Demographics (continued)
Note: Blank cells indicate that there were no significant
differences in this category. Differences Based on Organizations
Operations Location Differences Based on Union Status Differences
Based on Organization Staff Size Differences Based on Organization
Sector The organizations audit function Union (18%) > nonunion
(9%) Law enforcement Publicly owned for-profit (7%) > privately
owned for profit (1%)
15. Generally, who investigates (or would investigate) reports
of illegal behavior in your organization? Illegal Behavior:
Comparison by Selected Organizational Demographics Note: Blank
cells indicate that there were no significant differences in this
category. Differences Based on Organizations Operations Location
Differences Based on Union Status Differences Based on Organization
Staff Size Differences Based on Organization Sector Senior
management U.S.-based operations only (60%) > multinational
operations (46%) 1 to 99 employees (73%) > 500 to 2,499
employees (47%), 2,500 to 24,999 employees (39%) The organizations
legal counsel Multinational operations (63%) > U.S.-based
operations only (42%) 2,500 to 24,999 employees (64%) > 1 to 99
employees (30%) 25,000 or more employees (63%) > 1 to 99
employees (30%) The organizations ethics officer Multinational
operations (26%) > U.S.-based operations only (8%) Union (28%)
> nonunion (10%) 2,500 to 24,999 employees (21%) > 1 to 99
employees (3%) 25,000 or more employees (33%) > 1 to 99
employees (3%), 100 to 499 employees (9%), 500 to 2,499 employees
(9%) Publicly owned for-profit (24%) > privately owned for
profit (9%) The organizations compliance officer 2,500 to 24,999
employees (30%) > 1 to 99 employees (9%) 25,000 or more
employees (41%) > 1 to 99 employees (9%) The organizational
ombudsman Multinational operations (5%) > U.S.-based operations
only (1%) Publicly owned for-profit (21%), government (23%) >
privately owned for profit (8%)
16. Generally, who investigates (or would investigate) reports
of illegal behavior in your organization? Illegal Behavior:
Comparison by Selected Organizational Demographics (continued)
Note: Blank cells indicate that there were no significant
differences in this category. Differences Based on Organizations
Operations Location Differences Based on Union Status Differences
Based on Organization Staff Size Differences Based on Organization
Sector Law enforcement Union (42%) > nonunion (27%) 500 to 2,499
employees (13%) > 100 to 499 employees (1%) 25,000 or more
employees (19%) > 100 to 499 employees (1%) Government (51%)
> privately owned for profit (24%)
17. Does (or would) your organization award financial
incentives (e.g., spot awards, bonuses) to employees who report
unethical and/or illegal behavior in your organization? Note: n =
336. Excludes responses of not sure.
18. During the past 12 months, have you personally observed
misconduct that you thought violated your organizations ethics
standards, company policy or the law? Note: n = 372. Excludes
responses of not sure.
19. Has your organization implemented policy and procedural
changes related to whistle-blowing on unethical and/or illegal
behavior in the past 12 months or is it planning to in the next 12
months? Note: n = 321. Excludes responses of not sure. Percentages
do not total 100% due to rounding.
20. Has your organization implemented policy and procedural
changes related to whistle-blowing on unethical and/or illegal
behavior in the past 12 months or is it planning to in the next 12
months? Comparison by Selected Organizational Demographics Note:
Blank cells indicate that there were no significant differences in
this category. Differences Based on Organizations Operations
Location Differences Based on Organization Staff Size Yes, we have
already implemented policy and procedural changes Multinational
operations (49%) > U.S.-based operations only (35%) 2,500 to
24,999 employees (52%) > 100 to 499 employees (27%) 25,000 or
more employees (65%) > 1 to 99 employees (29%), 100 to 499
employees (27%) No, we have no plans to implement policy and
procedural changes 100 to 499 employees (67%) > 500 to 2,499
employees (44%)
21. Demographics: Organization Industry Note: n = 374.
Percentages do not total 100% due to rounding. Industry
Manufacturingother 14% Health care, social assistance (e.g.,
nursing homes, EAP providers) 12% Servicesprofessional, scientific,
technical, legal, engineering 10% Financial services (e.g.,
banking) 8% Educational services/education 7% Government/public
administrationfederal, state/local, tribal 6% Retail/wholesale
trade 6% Other services (e.g., nonprofit, church/religious
organizations) 4% Transportation, warehousing (e.g., distribution)
4%
22. Demographics: Organization Industry (continued) Note: n =
374. Percentages do not total 100% due to rounding. Industry
Insurance 3% High-tech 3% Construction, mining, oil and gas 2%
Consulting 2% Publishing, broadcasting, other media 2%
Manufacturingauto/auto-related 2% Real estate, rental, leasing 2%
Servicesaccommodation, food and drinking places 2% Utilities 2%
Arts, entertainment, recreation 1% Associationprofessional/trade 1%
Biotech 1% Telecommunications 1% Pharmaceutical 1% Other 5%
23. Demographics: Organization Sector Note: n = 352. Excludes
other organization sectors.
24. Demographics: Organization Staff Size Note: n = 349.
Percentages do not total 100% due to rounding.
25. Demographics: Other Note: n = 384 Is your organization a
single-unit company or a multi-unit company? Are HR policies and
practices determined by the multi-unit corporate headquarters, by
each work location or both? Does organization have U.S.-based
operations (business units) only or does it operate
multinationally? Note: n = 385 Note: n = 274
15% of organizations indicated that employees at their work
location were unionized.
Note: n = 374 U.S.-based operations 70% Multinational operations
30% Single-unit company: A company in which the location and the
company are one and the same. 30% Multi-unit company: A company
that has more than one location. 70% Multi-unit headquarters
determines HR policies and practices 54% Each work location
determines HR policies and practices 1% A combination of both the
work location and the multi-unit headquarters determine HR policies
and practices 45%
26. SHRM Poll : Organizational Whistle-blowingReporting
Unethical and Illegal Behavior in the Workplace
