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Whistle-blowers face growing employer retaliation: Study

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Whistle-blowers who go to higher management and their firm's hot lines are significantly more likely to face retaliation than those who go first to their supervisors, but this likely reflects the types of misconduct they are reporting, says a special report issued by the Ethics Resource Center on Tuesday.

The report, “Retaliation: When Whistleblowers Become Victims,” is a supplemental report that provides further analysis of data collected through the Arlington, Va.-based center's 2011 National Business Ethics Survey, which was released in January. That survey found that 24% of whistle-blowers said they experienced workplace retaliation in 2011, up sharply from 15% in 2009.

The report issued Tuesday found that 27% of those who first report problems to higher management, and 40% of those who go first to a hot line, experience retaliation. Only 17% of employees who feel comfortable enough to report first to their supervisor experience retaliation, according to the report.

“It is likely that differences in retaliation rates by reporting locations are indicative of the seriousness of the kinds of misconduct being reported,” says the report.

“It seems likely many reporters would choose to go to higher management when their supervisors are the ones who committed the misconduct. Employees often report significant violations of the law (e.g. insider trading) to the hot line because it provides an assurance of anonymity and protection which an in-person does not.”

According to the report, since 2007, there has been an 83% increase in the rate of retaliation, but reporting has only increased by 12%.

“The increase in reporting is certainly positive news, but as retaliation becomes more prevalent, it is likely to drive down reporting rates,” says the report.

Along with retaliation in general, specific types have increased dramatically since 2009. These include incidents of “traceable” retaliation, which is defined as incidents that leave proof of having happened, such as physical harm or online harassment, which has increased 27%. Senior managers are more likely to experience traceable retaliation, according to the report.

The report also found that 52% of reporters who feel pressure to compromise standards end up experiencing retaliation after reporting, while only 12% of reporters without such pressures experience retaliation.

Suggestions to address the issues discussed in the report include companies communicating broadly among employees their efforts related to the reporting process and protections for those who report. It also recommends moving the investigation process along quickly, paying particular attention to individuals who report more than once.

Copies of the report are available at www.ethics.org.