Fear of Backlash for Reporting Misconduct Is a Sure Sign of an Ethically Challenged Workplace

Arlington, VA – Fear of retaliation for speaking up about ethical violations in the workplace not only affects whether workers are willing to report wrongdoing to management, it drives the level of misconduct itself, according to a new study released today by the Ethics Resource Center.

Employees who report misconduct in a company with zero tolerance for retaliation experience it at a strikingly lower rate than workers at companies with weak ethical environments (4 percent versus 25 percent), the study found.  And victims of retaliation trust the company’s leaders less, feel less optimistic about the company’s financial future, tend to think the head of the company is overpaid and look to quit the company sooner.

Likewise, where workers feel pressured to compromise company standards, policy or the law, those who report misconduct are much more likely to experience retaliation (59 percent) than those who report but do not feel pressure (6 percent).

"This report demonstrates just how toxic the fear of retaliation can be in an organization,” said Ann Wootton, President and General Manager, SAI Global Compliance Americas, which sponsored publication of the report.  “We strongly believe that companies that make zero tolerance their goal are doing more than controlling the damage that can be done to their organization.  They’re helping to build employee morale, set an important ethical tone and encourage an environment that leads to success.”

“ERC’s research shows workplace retaliation for what it is – a destructive attitude-killer,” added Patricia J. Harned, president of the Ethics Resource Center.  “The best antidote is a company-wide ethical culture where employees feel that reporting is not only tolerated but welcome.  And surveys are the best way to assess what’s on employees’ minds.”

The free report – Retaliation: The Cost to Your Company and Its Employees – is based on data gathered by ERC’s 2009 National Business Ethics Survey, a random telephone survey of 2,852 employees with a sampling error of 1.8 at the 95 percent confidence level.  For methodology, go to http://www.ethics.org/nbes/methodology.html.

To see ERC’s series of supplemental reports and the 2009 National Business Ethics Survey, go to www.ethics.org/nbes.  ERC is an independent, nonprofit research organization devoted to advancing the cause of ethics and ethical culture in the workplace.