THE INTERNAL DISCLOSURE POLICIES OF PRIVATE-SECTOR EMPLOYERS - AN INITIAL LOOK AT THEIR RELATIONSHIP TO EMPLOYEE WHISTLEBLOWING

Whistleblowers have usually been treated as outcasts by private-sector employers. But legal, ethical, and practical considerations increasingly compel companies to encourage employees to disclose suspected illegal and/or unethical activities through internal communication channels. Internal disclosure policies/procedures (IDPP's) have been recommended as one way to encourage such communication. This study examined the relationship between IDPP's and employee whistleblowing among private-sector employers. Almost 300 human resources executives provided data concerning their organizations' experiences. Executives in companies with IDPP's reported a significant increase in the number of internal disclosures by employees after implementation. Respondents also reported a significant decrease in the number of external disclosures after implementation of their IDPP. When the level of employee disclosures in companies with IDPP's was compared to those in companies without IDPP's, the overall level of internal disclosures was significantly higher among employers who had the internal policies/procedures. Respondents also reported a marginally significant association between the responsiveness of management to employee-voiced concerns and the level of internal disclosure, by employees. Possible interpretations of these results are discussed, and their implications for private-sector employers are addressed.