Arizona Tribune - Nearly 40% of Companies Have Experienced Organizational Misconduct, According to EQS' 2025 Whistleblowing Report

MUNICH, DE / ACCESS Newswire / October 6, 2025 / Today, findings from the 2025 Whistleblowing Report were released, revealing almost half of all companies affected by misconduct were able to uncover a large share of the resulting financial losses, thanks to their whistleblower reporting system. A whistleblower, by definition, is an individual (typically, an employee) that reveals information about an organization's illegal or fraudulent activity. The research, which was published by EQS Group in cooperation with the University of Applied Sciences of the Grisons, marks the fourth edition of this international study, with 2,200 companies surveyed across Germany, France, the United Kingdom, Italy, Switzerland, Spain and the United States.

"The results show that whistleblowing channels play a key role in uncovering misconduct in organizations and their supply chains," says Professor Dr. Christian Hauser of the University of Applied Sciences of the Grisons, who led the project. "Organizations with established systems are significantly more successful in limiting financial damage - clear evidence of the preventive effect of these instruments."

Whistleblowing channels and complaints mechanisms serve different stakeholders

Unlike previous editions, this year's research makes a clear distinction between internal whistleblowing channels for employees and external complaints mechanisms for third parties such as customers or suppliers. Whistleblowing channels are designed to help employees report misconduct within the organization, while complaints mechanisms focus on illegal or unethical behavior in the supply chain. 70 percent of the US companies surveyed have implemented an internal whistleblowing channel, and 67 percent of US companies have established an external complaints mechanism.

"Across markets and regions, we are seeing a clear trend: whistleblowing and complaints mechanisms are gaining importance, and not just for regulatory compliance," says Achim Weick, founder and CEO of EQS Group. "When used effectively, they foster a culture of transparency and integrity that strengthens trust among employees, partners, and customers."

Traditional reporting channels are still most widely used, but digital platforms are on the rise

When setting up their whistleblowing channels, U.S. companies typically rely on a mix of different reporting options for employees. On average, they provide four separate internal channels - predominantly traditional methods such as email (61 percent), in-person meetings (68 percent), or telephone hotlines (56 percent); however, web-based whistleblowing systems and digital platforms are gaining traction (44 percent). For external complaints mechanisms, companies provide an average of three channels, with traditional contact methods still prevailing.

One in seven companies records losses exceeding $115,000

Misconduct in organizations or supply chains poses a significant risk and can result in major financial losses. Among the U.S. companies surveyed, one in six (15 percent) reported losses of at least $115,000 caused by illegal or unethical behavior. However, almost half of all U.S. companies (57 percent) were able to uncover over two-thirds of their total losses in 2024 thanks to their whistleblowing or complaints systems.

"Whistleblowing systems are no longer just a regulatory requirement - they are strategic tools to identify risks early and minimize financial losses," says Weick. "Companies that invest in reliable solutions strengthen their resilience and underscore their integrity in the marketplace."

High relevance of incoming reports

U.S. companies surveyed considered 6 out of 10 incoming reports (60 percent) - from both internal and external sources - to be relevant and substantial. Reports from employees showed that diversity and respect in the workplace, human rights, occupational health and safety, and data protection were the main focuses. Reports from external stakeholders, on the other hand, focused primarily on accounting, auditing and financial reporting, business integrity, and human rights.

Anonymous reporting does not lead to more abuse

In the U.S., 64 percent of internal whistleblowing channels allow anonymous reporting. For external complaints mechanisms, the percentage is slightly lower (36 percent). Abusive reports - defined as reports intended to deliberately damage a company or individual's reputation - made up 11 percent of all reports, regardless of whether anonymity is offered. The study therefore confirms that allowing anonymous reporting does not lead to more false or malicious submissions.

One in two companies uses AI for misconduct prevention

Aside from whistleblowing systems, U.S. companies also rely on several other measures to prevent and detect misconduct. More than three-quarters (77 percent) have implemented a code of conduct, and 76 percent rely on active and open communication by leadership as a preventive measure. AI tools are also increasingly used to investigate and prevent misconduct. Nearly half of the companies surveyed (45 percent) deploy AI-based systems for this purpose, led by organizations in the U.S. (56 percent) and the UK (53 percent).

The full report is available to download at: https://www.eqs.com/compliance-wpapers/whistleblowing-report-2025

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About EQS Group

EQS Group is a leading international cloud provider for compliance & ethics, data privacy, sustainability management, and investor relations. More than 14,000 companies across the world use EQS Group's products to build trust by reliably and securely meeting complex regulatory requirements, minimizing risks and transparently reporting on business performance and its impact on society and the environment.

EQS Group's solutions are bundled in a cloud-based platform. This allows compliance processes for whistleblower protection and case handling, policy management, and approval processes to be managed just as professionally as business partners, third parties and risks, insider lists and reporting obligations. In addition, EQS Group provides software to fulfill human rights due diligence requirements across corporate supply chains, ensure compliance with data privacy regulations like GDPR and EU AI Act, and support efficient ESG management and compliant sustainability reporting. Listed companies also benefit from a global newswire, investor targeting and contact management, as well as IR websites and webcasts for efficient and secure investor communication.

EQS Group was founded in Munich in 2000. Today, the group employs around 600 professionals worldwide.

https://www.eqs.com/

About the University of Applied Sciences of the Grisons (FHGR)

As a university of applied sciences, the FHGR focuses on dynamic thinking and proactive action. Its degree programs are geared toward practical challenges in business and society. It develops its more than 2,400 students in education and continuing education into responsible individuals. The FHGR offers programs in the fields of architecture and civil engineering, media, technology, and IT, as well as economics, services, and information science. Its interdisciplinary and transdisciplinary research focuses on applied future technologies, development in alpine regions, and entrepreneurial activity. Through its activities, the FHGR contributes to the success and competitiveness of individuals, institutions, and regions. To this end, it is firmly rooted in the region, plays an important role in Switzerland, and has an international reach. fhgr.ch

SOURCE: EQS Group GmbH

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