Whistleblowing in Organizations – The Influence of Whistleblowing Measures on the Compliance Culture in Organizations

Project Description

This project focuses on the investigation of whistleblowing as a central element of a functioning compliance culture in organizations. The main question is what mechanisms and structures encourage employees to report perceived misconduct (speak-up) – or not. The background is the Whistleblower Protection Act (HinSchG), which came into force in July 2023, aimed at protecting employees from retaliation and increasing the willingness to report wrongdoings.

Background

Although the law is based on the EU Whistleblower Directive, the implementation of this directive is a national matter and thus depends on national law. While the law provides a wide range of guidelines and compliance requirements, it also leaves considerable room for interpretation in its implementation, which can lead to varying levels of effectiveness. Organizations thus face the challenge of establishing effective and trustworthy reporting channels. In many organizations, (organizational) misconduct is often not recognized as such or – if recognized – is frequently tolerated because it often brings (short-term) benefits, such as simplified processes and reduced workloads.

This, in turn, puts employees in a difficult position and forces them to decide whether to report such practices. A report often leads to internal conflicts or even disadvantages for the reporting person. At the same time, it is the employees who interact within the organization on a daily basis and are the first to notice deviations from rules and can help prevent potential (reputation) damage to the organization by making early reports. The introduction of whistleblowing platforms and active support from leaders can reduce this conflict and strengthen the compliance culture within the organization. However, it is not enough to simply introduce formal structures, such as appointing compliance officers, and expect this to improve employees' reporting behavior.

Project Goals

The goal of this project is to gain deeper insights into actual reporting behavior, analyze existing whistleblowing measures for their effectiveness, and derive practical recommendations for strengthening a sustainable compliance culture. The main focus will be on the perception and acceptance of whistleblowing within different organizational contexts as well as the impact of informal norms, (leadership) cultures, and organizational frameworks on the decision to blow the whistle.

Analyze internal structures and mechanisms that promote or hinder the willingness to report (e.g., type of reporting procedures, organizational culture)
Assess the impact of the Whistleblower Protection Act on reporting behavior and "organizational bystanding"
Identify effective whistleblowing tools and implementation methods
Develop practical recommendations for organizations to foster an open, rule-compliant organizational culture

To answer these questions, a factorial survey design will be used. The study will present realistic vignettes depicting different scenarios of organizational and individual misconduct. The vignette analysis will allow for a detailed identification of the factors influencing reporting behavior.

❮ back to: HCLSI