In an ideal world, employees reporting ethical violations should expect their concerns to be addressed fairly and without fear of backlash. However, retaliation remains one of the biggest risks in ethics reporting, discouraging employees from speaking up and undermining workplace integrity. The intake specialists for Ethico’s whistlebltowardowing hotline can attest when callers are asked if they wish to remain anonymous, 7 times out of 10 the caller will ask some variation of, “Is this report going to go to my supervisor?” The fear of retaliation is the main reason callers wish to remain anonymous. Is your organization taking any steps towards addressing retaliation?

Understanding Retaliation Risks in Ethics Reporting

According to the  Equal Employment Opportunity Commission (EEOC), retaliation accounts for nearly 56% of all workplace discrimination charges filed in the U.S. (EEOC, 2023). The fear of professional repercussions like demotion, exclusion, or termination, will typically prevent many employees from reporting fraud, harassment, or other misconduct.

For your organization’s HR professionals, compliance officers, and ethics leaders, mitigating retaliation risks should be critical, and all should act toward maintaining a culture of transparency and trust. 

Recognizing the Signs of Retaliation in the Workplace

Retaliation can take many forms: some obvious, others more subtle. As employers, you should proactively identify these signs to ensure whistleblowers are not unfairly targeted. Here are a few of the main signs that will tell you retaliation might be present in your office:

Sudden Negative Performance Reviews

An employee with a history of strong performance who suddenly receives negative feedback after filing an ethics report may be experiencing retaliation. While legitimate performance concerns should always be addressed, timing and intent matter when evaluating these cases.

Unjustified Job Reassignments

Moving an employee to a less desirable role or significantly altering their responsibilities after an ethics complaint can be a form of retaliation, particularly if the change results in career setbacks or reduced job satisfaction.

Exclusion from Meetings or Opportunities

Being left out of meetings, projects, or decision-making conversations can be a retaliatory tactic used to isolate an employee and diminish their influence within the organization.

Increased Scrutiny or Micromanagement

A sudden increase in supervision or micromanagement directed at an employee who recently filed a complaint can be a sign of retaliation.

Hostile Work Environment

Subtle forms of harassment, like coworkers refusing to collaborate, spreading rumors, or making inappropriate comments are very clear signs of a workplace culture that permits retaliation.

For you or your HR manager, the first step should always be recognizing these warning signs. What’s next? Proactively addressing these behaviors, of course. How else can you maintain ethical workplace practices and preven further violations?

Legal Protections for Whistleblowers

Federal and state laws provide robust protections against workplace retaliation. Companies must ensure their compliance policies align with these legal frameworks.

Whistleblower Protection Act

The Whistleblower Protection Act (WPA) safeguards federal employees who report misconduct from retaliatory actions. It prohibits adverse employment consequences like demotion, suspension, or termination due to whistleblowing. Organizations operating in government sectors must ensure employees are aware of these protections and have a secure way to report concerns. 

Sarbanes-Oxley Act (SOX)

Especially for companies activating in the finance and corporate sectors, the Sarbanes-Oxley Act (SOX)offers legal protection for employees reporting financial fraud or corporate wrongdoing. Under SOX, organizations are required to:

• Maintain confidential whistleblower reporting mechanisms
• Implement clear anti-retaliation policies
• Provide remedies such as reinstatement and backpay for victims of retaliation.

Create a Strong Anti-Retaliation Policy

You cannot have a culture of ethics and compliance without a strong anti-retaliation policy, in your firm. Here’s how your organization can build one:

1. Establish Strong Confidentiality Guardrails

Your employees will be more likely to report ethical violations when they trust that their identity will be protected. Your company should:

• Use anonymous reporting systems to encourage open communication
• Limit information access to only essential personnel handling investigations
• Reassure employees that retaliation will not be tolerated

2. Train Your Managers on Anti-Retaliation Measures

Many cases of retaliation occur due to a lack of understanding rather than deliberate intent. With a comprehensive training program for managers in place, your organization should focus on:

• Identifying subtle forms of retaliation
• Handling employee concerns with neutrality
• Reinforcing the company’s commitment to ethical reporting

3. Encourage a Speak-Up Culture

This is possibly the most important thing: your employees should feel empowered to report misconduct without fear. This is something that builds up in time, and your organization should do anything to create such an environment, if you want to bring in and maintain the best workforce.

• Leadership should publicly support ethics reporting
• Recognize employees who uphold ethical standards
• Implement ongoing ethics training and awareness programs

The Next Step: Taking Complaints Seriously

Even with strong policies in place, your firm’s decision makers and HR professionals must ensure that every ethics complaint is taken seriously and handled with integrity.

1. Provide Support for Whistleblowers

Employers should provide mental health resources, mentorship programs, and legal support for employees who have reported ethical violations. Ensuring they feel safe and valued will prevent workplace disengagement.

2. Hold Retaliators Accountable

An anti-retaliation policy means little without strict enforcement. If an employee or manager is found guilty of retaliation, your organization must swiftly enforce consistent disciplinary actions: from formal warnings to termination.

When you fail to act, you risk losing employee trust, damaging your reputation, and facing legal penalties.

Keep Monitoring and Reporting on Retaliation Prevention Efforts

An effective ethics program doesn’t stop with policy creation. Your firm must regularly assess their systems to ensure they are successfully preventing retaliation. Preventing retaliation starts with and effective compliance monitoring system.  

1. Conduct Regular Compliance Audits

HR and compliance teams should review ethics reports, retaliation claims, and employee feedback to track trends and identify weaknesses in this system.

2. Gather Employee Feedback

Surveys and one-on-one interviews can help your organization gauge employee confidence in their ethics reporting system. If employees still fear retaliation, additional policy improvements may be necessary.

3. Measure Success Metrics

Key indicators such as reporting rates, case resolutions, and employee satisfaction scores can provide insights into the effectiveness of anti-retaliation efforts.

Build a Retaliation-Free Workplace

A workplace free from retaliation is the first step towards maintaining corporate integrity, legal compliance, and employee trust. But keep in mind that a retaliation-free workplace isn’t just about compliance, it’s about creating an ethical foundation where honesty and accountability thrive.

 Is your company’s ethics reporting system strong enough? Ethico offers industry-leading compliance solutions to help businesses protect whistleblowers, ensure legal compliance, and promote workplace transparency.