Willingness to Report Misconduct Is Key In Building an Ethical Workplace

Study Shows Women Are More Likely to Step Up; Few Employees Use a Hotline

Arlington, VA – A new study released today by the Ethics Resource Center finds that when it comes to employees reporting misconduct on the job – an important measure of an ethical workplace culture – women and nonunion workers tend to get the gold star and that an immediate supervisor, not a hotline, is likely to be the go-to point of contact.

The study – Reporting: Who's Telling You What You Need to Know, Who Isn't, and What You Can Do About It – found that in ERC's most recent national survey, 63 percent of those who said they saw misconduct at work went on to report it to higher-ups.

Feeling that it is safe to report misconduct without fear of retaliation – as well as believing that an employer will take the report seriously and do something about it, if appropriate – are two of the hallmarks of an ethical company culture, ERC research shows.

The new study finds that women are consistently more likely than men, 66 percent to 60 percent, to report unethical or improper conduct that they witness on the job.  Behaviors include sexual harassment, substance abuse, abusive behavior and stealing.  Men are more likely to report discrimination and falsifying time or expense reports, the study says.

Among other findings:

• Nonunion workers are more likely to report than their union counterparts, 65 percent to 55 percent
• Managers report more than non-management employees on all 19 of the specific types of misconduct measured by ERC
• Foreign-owned companies operating in the United States score lower than U.S. firms or U.S.-based multinationals
• Companies with effective, meaningful codes of conduct and training see higher reporting rates than those without

"These findings are a great reminder that a smart company will train its direct supervisors to be open to employees who have something to report," said Patricia J. Harned, Ph.D., president of ERC. "It fits with the adage that you can't fix it if you don't know about it.  Listening to these reports and taking them seriously is a mark of good management."

The study - the latest in a series released by ERC - was sponsored by Lockheed Martin, SAI Global and the Society of Corporate Compliance and Ethics. Results are based on ERC's 2009 National Business Ethics Survey. For methodology, go to http://www.ethics.org/nbes/methodology.html.

Download the free study.

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.