The numbers are astounding. As per Violation Tracker, since 2020, the sum of fines, penalties, and settlements for corporate misconduct in the U.S. has escalated to a whopping $221.9 billion.

Yet, the pervasiveness of wrongdoing remains unabated. Research by Ethisphere indicates that annually, nearly 75 incidents of misconduct per 1,000 employees fall on deaf ears. This silence or “speak-up gap” exposes corporations to daunting degrees of legal and regulatory hazards, injuring their brand image, depleting resources, and hindering investment opportunities and employee retention.

But what’s the root cause? Why do employees often hold their tongues amidst detrimental malfeasance? One significant factor inhibiting the reports of misconduct is a deep-seated fear. Employees dread workplace reprisal and feel skeptical about any follow-up actions. This fear persists even with knowledge of the company’s anti-retaliation policies.

However, this gloomy picture can change with the involvement of whistleblowers and the fostering of a culture of open communication. Whistleblowers are pivotal in exposing corporate wrongdoing when organizations turn a blind eye to misconduct. Managers are essential in cultivating this environment of transparency. As employees are more likely to report malpractice to their managers than through hotlines, managers can become whistleblowing champions and primary tutors of organizational values.

Below are six best practices to encourage a whistleblowing culture:

1. Promote a speak-up culture: Managers should reassure their teams that speaking up is not betrayal but a righteous act contributing to upholding workplace ethics.
2. Adopt active listening: Managers should treat reports earnestly and ensure escalation within the organization. They must also communicate clear expectations regarding the investigation process and its timeline.
3. Discuss ethical culture: Regular dialogues on business integrity amplify ethical behavior. Companies can leverage ethics and compliance toolkits to steer these talks.
4. Avoid premature suspensions, terminations, or reassignments: Removing someone from the team following a misconduct report can appear vindictive. Educating managers on this matter is crucial for the credibility of the whistleblowing program.
5. Share investigation results openly with employees: Transparency is key. Disseminating investigation information in ESG reports demonstrates the firm’s dedication to organizational justice.
6. Develop strong organizational values and principles: Employees require clear and relatable values to navigate their decisions, particularly in ambiguous ethical scenarios.

A robust organizational culture doesn’t happen by chance. It needs deliberate nurturing. Employees should be confident that they will be backed when they act righteously. Speaking up, or whistleblowing, shouldn’t be an act of bravery, but an act of integrity. This shift can effectively curb the rampant issue of corporate misconduct.

Erica Salmon Byrne https://www.fastcompany.com/91196912/the-speak-up-gap-is-killing-your-company-how-to-fix-it inspired this article.