Internal Whistleblowing’s Counterintuitive Impact on Lawsuits and Settlements

While external whistleblowing—reporting misconduct to regulators or members of the media— has captured much attention, the impact of reporting misconduct anonymously to management, known as internal whistleblowing, is relatively unknown. Our new study, Evidence on the Use and Efficacy of Internal Whistleblowing Systems, reveals the impact of these systems.

Due to the sensitivity of individual internal whistleblowing reports, we received only limited data on each whistleblowing event. No names or specific text were shared. We did have access to over 900 public company internal feedback systems, including reports about financial reporting issues, harassment or other HR issues, business integrity, … Read more